Australia's wine culture on the move

Australia’s wine consumption trends have been put under the microscope with the recent release of a first of its kind report called State of the Grapes, which reveals large-scale shifts in the nation’s palates, our Hunter Valley correspondent Rick Allen reports.

A collaboration between Wine Australia and the Endeavour Group, the report analyses sales data from BWS and Dan Murphy’s and gives an insight into what the wine shelves of the future could look like.

"We are witnessing a significant evolution in how Australians are choosing their wine," says Andrew Shedden, general manager of Premium and Luxury at Endeavour Group.

"Not just fleeting trends, but long-term, global patterns that are reshaping the entire Australian wine landscape.

“From the surging popularity of rosé and prosecco to the 'spritz culture' invigorating the market, consumers are sending a clear message: they want lighter, more versatile, and often more affordable options."

Across every state, there is a clear trend towards lighter-bodied and more refreshing wine styles. 

Varieties such as pinot noir, pinot grigio/gris, rosé, and prosecco have all grown their market share significantly. This comes at the expense of traditional fuller-bodied red wine varieties which have seen a decline in sales since 2018.

Cask wine, sauvignon blanc, traditional red blends and non-vintage sparkling joined shiraz in experiencing the most significant declines over the long term.

Innovation has breathed new life into the wine sector. 

The 'spritz' category (sparkling-wine-based cocktails) has spearheaded this. Driven by Millennial and Gen Z consumers seeking accessible, refreshing and Instagrammable options, the desire for Spritz has the potential to define attitudes towards flavoured and sparkling wine styles.

Value is being prioritised above all else for younger Australians, making promotional deals a big factor in consumer decision making.

Findings suggest that younger drinkers are bypassing the traditional 'rules' of wine and prioritising their personal taste over conventional food pairings or norms. This is changing where and when wine is consumed, challenging its once-dominant place at the dinner table.

Around the states:

Victoria: leading the way nationally with new drinkers and innovation; national leader in Spritz sales; a trend away from shiraz to pinot noir.

NSW: Australia’s leading market, but with less state loyalty than other states, with 90% of sales on wines from other states or countries.

Western Australia: deep loyalty to local producers, with their preference for local heritage and classic varieties; a thirst for prosecco.

South Australia: a growing appreciation for shiraz despite the national decline; the highest commitment of any state to Australian wine.

Tasmania: The highest allegiance to local producers with nearly 20% of wine sales on in-state products, a figure that is eight times the national average.

Image: Elena Pasenko, Scop.io