Australia’s wine export volumes have plummeted to their lowest level in over two decades, driven by a broader global decline in alcohol consumption.
According to recent data from Wine Australia, the industry’s statutory body, export volumes decreased by 6% to 598 million litres for the year ending in June. This marks the first time since 2004 that annual volumes have fallen below the 600-million-litre threshold.
The downturn extended to financial returns, with export values dropping 7% to A$2.30 billion (approximately $1.59 billion).
Wine Australia noted that these results reflect deteriorating trading conditions across several primary export destinations. This trend coincides with a global decrease in wine intake, which has now reached its lowest point since 1961.
Peter Bailey, Market Insights Manager at Wine Australia, stated that the data suggests this decline is more than a temporary dip. Instead, it appears to be a fundamental shift in consumer behavior that is permanently reshaping global demand.
The slump was primarily driven by weakening demand in Australia’s three largest markets: mainland China, the United Kingdom, and the United States. While mainland China remains the largest market by value, exports there fell 15% to A$756 million.
Bailey explained that the initial rebound and restocking period following the removal of tariffs has ended. He noted that the Chinese market has entered a more mature, demand-led phase, resulting in a smaller and slower-growing market than what existed prior to the 2020 tariffs.
In the UK—Australia’s largest market by volume—and the US—the second largest—shipment volumes have hit a 25-year low. Bailey observed that while commercial and mid-priced wines have suffered, premium Australian wines have remained more resilient in the UK. Conversely, the US market has shown weaker demand across nearly all price tiers.
Despite these challenges, some regions showed growth. Canada emerged as a bright spot, with export values rising 20% to A$188 million and volumes increasing by 13%.
Additionally, value growth was recorded in Thailand, Malaysia, Japan, South Korea, and Taiwan. Singapore has notably become Australia’s largest Asian market outside of mainland China.
