UK overtakes China as top market for Chilean wine

By James Bayley

Published: 30 July, 2024

Chilean wine exports saw a resurgence in early 2024, according to the Spanish Wine Market Observatory (OEMV). From January to March, the volume of Chilean wine exports rose by 9.6% and its value increased by 3.3%, reaching 184.6 million litres and $366.3m respectively. This comes after a challenging 2023, where export values fell 20% to $1,525.9m, and volumes dropped 18% to 682 million litres.

In 2023, the market was hit hard, particularly in China and the US, with China seeing a $96.1m decline and the US a $21.8m fall. Chinese wine imports have contracted significantly, down to 48 million litres in 2023 from 688 million litres in 2018. This was despite tariffs on Australian wine, which were lifted in March, creating opportunities for other wine-producing regions. France benefited most, gaining a 49% market share, but Chile also increased its share to 17%.

The first quarter of 2024 marks a positive trend for Chilean wine, largely driven by a nearly 40% growth in UK imports, propelling the UK to the top spot in value terms, surpassing China and the US. This growth reflects increasing demand for Chilean wine in the UK, driven by product quality and effective marketing strategies.

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Despite a 5.8% drop in the average export price to $1.98 per litre, the increase in export volume and value suggests a recovery for the Chilean wine industry. This resilience is shown in the industry’s adaptability to global market challenges, with producers diversifying offerings and optimising production processes to stay competitive.

Meanwhile, recent data from Wines of Chile shows that China’s downward trend persisted from January to May, with export volumes to China increasing by 8.85% to 1.84 million cases (9 litres per case), but the export value dropping by 4.49% to $61.13m.

Chile has been the top source of bulk wine for China due to zero tariffs and high-cost performance. However, from February to April this year, China’s imports of Chilean bulk wine fell to $12.86m, a year-on-year decrease of 27.13%.

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