W10 Wine Update: China Expected Complete Tariff Review on Australian Wine in Mar-24, Canadian Wine Imports Declined, and Declined Production in Greek

Published 2024년 3월 14일

In W10 in the wine landscape, China is set to complete a review of tariffs on Australian wine by the end of Mar-24. If China does not remove the tariff after the review, Australia will resume a WTO suit against the tariffs. In addition, the global wine industry is expected to grow at a CAGR of 8.8% from 2022 to 2027. The market's volume is projected to increase from 24 billion liters to 26.7 billion liters, with Western Europe and the US leading in market share. Furthermore, Greek wine production in the 2023/24 season suffered a significant decline of over 35% YoY to 1.38 million kiloliters due to extreme weather events and diseases such as downy mildew. Lastly, wine imports in Canada saw a decline of 14.4% YoY in 2023, with bottled wines down 15%, and decreases also observed for bulk wines and sparkling wines.

China to Review Tariffs on Australian Wine by Mar-24

According to the Australian Trade Minister, China will complete a review of high tariffs on Australian wine by the end of Mar-24, which the Chinese trade minister confirmed. China imposed up to 218% tariffs on Australian wine from 2021. According to the Minister, Australia will resume a World Trade Organization (WTO) suit against the tariffs if China does not remove the tariff after the review.

China has gradually lifted trade barriers on various commodities, including barley, wine, coal, and lobsters. These restrictions were implemented in late 2020 due to an escalating dispute regarding foreign investment and security between the two countries. The conflict began when Australia called for an inquiry into the origins of COVID-19.

Global Wine Industry Expected to Grow at CAGR of 8.8% from 2022 to 2027

According to Research and Markets, the global wine industry was valued at USD 346.8 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 8.8% from 2022 to 2027, eventually reaching a value of USD 528.2 billion. In addition, the global wine market's volume will increase from 24 billion liters in 2022 to 26.7 billion liters in 2027, with Western Europe having the largest market share of 49.5%, followed by the United States (US) at 21.6%.

Greek Wine Production Dropped by Over 35% in 2023/24 Season due to Extreme Weather and Diseases

According to the Greek Ministry of Agriculture, Greek wine production in the 2023/24 season decreased by 35.14% year-on-year (YoY) to 1.38 million kiloliters. Compared to the average output in the previous five years, production is down by 40.2%. The sharp decline can be attributed to extreme weather events experienced last spring and summer, such as continuous rainfall and successive heat waves in Jul-23, along with diseases like downy mildew and the subsequent damage.

Canada’s Wine Imports Decreased by 14.4% YoY in 2023/24 Season

In 2023, wine imports in Canada declined 14.4% YoY, amounting to USD 2.03 billion (EUR 1.85), which remained above the pre-COVID levels of around EUR USD 1.86 billion (EUR 1.7 billion). The imports of bottled wines fell by 15% YoY, totaling USD 1.69 billion (EUR 1.55 billion). The imports of bulk wine decreased by 10% YoY to USD 95.92 (EUR 88 million), and the sparkling wine imports decreased by 13% YoY to USD 224.54 (EUR 206 million).