Australia Gains Ground in Japan’s Wine Market

Australia is trying to expand its foothold in Japan’s wine market, where it still holds a relatively small share compared with other parts of Asia, even as exports have been rising and tariffs have fallen away.

Wine Australia said in a recent market bulletin that Australian wine accounts for about 5% of Japan’s imported wine volume and 3% of its value, leaving room for growth if exporters can win business from rival suppliers. In the 12 months ended March 2026, Australian wine shipments to Japan increased 5% in volume to 11 million liters and 10% in value to $49 million, according to the group.

The gains were spread across price points, with the top three varietals — Chardonnay, Cabernet Sauvignon and Shiraz — all posting higher value sales. Wine Australia said the longer-term trend has also been positive since the Japan-Australia Economic Partnership Agreement took effect in 2015. Exports to Japan rose soon after the agreement came into force and have grown by an average of 2% in value each year since then, though results have varied from year to year.

The trade deal helped remove import tariffs on bulk wine immediately, while duties on bottled wine were phased out over time. Wine Australia said all Australian wine exports to Japan are now tariff free.

Japan is the largest imported wine market by volume in the Asia-Pacific region and Australia’s eighth-largest export market for wine, making it an important destination for producers looking beyond traditional markets. Wine Australia described Japan as a vital market for exporters because of its size and its role as a gateway to broader regional demand.

Still, Japan is considered by IWSR to be an established wine market, meaning growth has slowed after years of expansion. Per-capita consumption remains modest at 3.1 liters per adult each year, far below Australia’s 22.3 liters per adult. Even so, Japanese consumers drink more wine than many people in other Asian markets, including Singapore at around two liters per adult and South Korea and Taiwan at around one liter each.

Overall wine consumption in Japan has been falling. IWSR estimates that total consumption has declined by an average of 2.5% a year over the past five years, reaching 36 million 9-liter cases. The research firm expects both volume and value to edge lower over the next five years.

Wine Australia said consumer research from Starburst Insights found that Japanese drinkers tend to view Australian wines as accessible and good value for money, a perception that has helped during periods of economic strain. The same research found that Australian wines are also seen as pure, natural, sustainable and distinctive.

Wine Australia recently held a webinar with market specialists from Wine Australia and Austrade to brief current and prospective exporters on conditions in Japan. The market bulletin summarized those discussions along with consumer insights and trade data.