Australian wine exports show steep decline

Bad news all round for the struggling Australian wine industry.

Australian wine exports declined by 7% in value to $2.30 billion and 6% in volume to 598 million litres in the year ended June 2026, Wine Australia’s latest Export Report released today shows.

This is the first time that export volume has fallen below 600 million litres since 2004.

The decline mirrors a broader global trend of declining wine consumption over the past decade.

The total export figures reflect increasingly difficult trading conditions across many of Australia’s key export markets, driven by a historic downturn in global wine consumption.

Worldwide wine consumption has fallen to its lowest level since 1961, as consumers increasingly moderate alcohol intake, face cost-of-living pressures and shift towards alternative beverages.

Wine Australia manager for market insights Peter Bailey said the challenges facing Australian wine exporters were not unique, with other wine-producing nations facing the same conditions.

“Data from multiple sources suggests the decline in wine consumption globally is more than a short-term downturn - it's a reflection of changing consumer behaviour that is reshaping demand around the world.

"This reinforces the importance of understanding where demand exists and the products and occasions that are driving consumer decisions.

“While global trading conditions remain challenging, Australia wine continues to perform relatively well in many key markets where it generally maintained or grew its share of imported wine over the past year.”

The decline was driven primarily by weaker demand in Australia's three largest export markets: mainland China, the United Kingdom and the United States.

Mainland China remained Australia's largest export market by value, despite exports falling 15% to $756 million as the initial post-tariff recovery and restocking phase came to an end.

“While exports to mainland China declined over the past year, Australia remains the leading source of imported wine in the market,” Bailey said.

“The market is no longer being driven by the re-stocking of Australian wine, rather we’re seeing a more mature and demand-led phase, reflecting a smaller and slower-growing Chinese wine market than existed prior to the imposition of tariffs in late 2020.”

The United Kingdom remained Australia's largest market by volume and the United States second, although export volume to both markets fell to their lowest level in 25 years.

Canada was a standout performer, with export value increasing 20% to $188 million - its highest level in seven years - and volume rising 13%.

China Syndrome continues to damage Australian wine industry

Tough times continue for the Australian wine industry with Australian wine exports declining by 8% in value and 6% in volume in 2025.

Value declined to $2.34 billion and volume to 613 million litres, stats in Wine Australia’s Export Report released today show.

The average value of exports also decreased by 3% per cent to $3.81 per litre Free on Board (FOB).

The reduction in overall exports was largely driven by declines in the value of exports to mainland China and the United States and in volume to the United Kingdom.

There were also markets recording value growth for Australian wine including Canada, Singapore, Thailand and Malaysia, which Wine Australia said indicated areas of opportunity for ongoing market diversification.

Wine Australia manager for mrket Insights Peter Bailey said the overall weakened export performance is consistent with the long-term trend of declining wine consumption in major markets around the world.

“Consumers are reducing overall alcohol consumption in line with wellness trends and in order to save money as the cost-of-living increases," Bailey said.

"For wine exporters around the world, trade barriers and regional conflicts are also making it more difficult and costly to get product into markets.”

Exports to mainland China had the biggest impact on the decline in value, as shipments to the market were down by 17% year-on-year to $755 million, following the initial restocking period after the removal of import tariffs on Australian wine

“While the re-opening of the mainland China market at the end of March 2024 provided some temporary relief in the decline in total exports, the Chinese wine market is one-third of the size it was five years ago - impacting both domestically produced and imported wines,” Bailey said.

“While shipment levels in the first three quarters after tariffs were removed were exceptionally positive, consumer demand has been subdued. Chinese consumer confidence has only made minor improvements since falling to an all-time low in 2022 during the Covid-19 pandemic[- which has negatively impacted consumer spending."

The top five markets by value were: mainland China, down 17% to $755 million, UK down 3% to $343 million, US down 12% to $287 million, Canada, up 12% to $175 million, and Singapore, up 18% to $118 million.

For more info see Wine Australia’s Export Report and Wine Australia’s Export Dashboard.

China syndrome lifts Australian wine exports

China's renewed appetite for Australian wines has helped drive a 13% increase in export values over the financial year 2024-2025.

In the 12 months ended June 2025, Australian wine exports also increased 3% in volume,  Wine Australia’s Export Report released today reveals.

Peter Bailey, manager, Market Insights, Wine Australia said the latest data shows the impact of the China market reopening in March 2024 is beginning to stabilise.

“The year-on-year increase in exports was almost entirely driven by mainland China after tariffs on Australian bottled wine were removed at the end of March 2024," Bailey said.

"Over 12 months have passed since tariffs in mainland China were removed and the initial surge in exports has eased, resulting in 85 million litres of wine exports to the market in the 12 months ended June 2025, worth $893 million.

“The quarter ended June 2025 was 35% smaller in value than the same quarter in the previous year. This indicates that the level of exports to mainland China may be normalising after the initial re-stocking phase.

“The return of mainland China offers a valuable market, with global wine consumption at its lowest level since 1961. However, it has only had a small impact on total export volume, as the volume shipped to mainland China is half of what it was at its peak in 2018.

“This reflects the decline in wine consumption in the Chinese market over the last five years; the market is now only a third of the size it was in 2019."

In the past 12 months, imports from France, Italy, Spain, and Chile to China have all declined.

Exports from Australia to the rest of the world declined by 11% in value to $1.59 billion and 6% in volume to 554 million litres. 

While the decline in value was mainly driven by Hong Kong as sales transitioned to mainland China, the drop in volume reflected a reduced supply of Australian wine available for export after three smaller vintages, as well as declining demand from key export markets.

In a concerning stat, Australian wine exports to the United States declined by 10% in volume to 111 million litres and 12% in value to $314 million, the lowest value in over two decades.

The US wine market continues to face headwinds that developed after the Covid-19 pandemic, leading to reduced overall wine consumption in the last five years, Wine Australia said.

Health and wellness concerns, particularly among older wine consumers, lack of attachment recruitment to the category from younger generations, increased competition from other alcoholic beverages, high wholesaler inventories, and ongoing economic and political uncertainty, including import tariffs, have all contributed to a suppressed outlook for wine exports to the market in the near-term.

The top export destinations by value were:

* Mainland China, up 123% to $893 million
* United Kingdom, down 1% to $350 million
* United States, down 12% to $314 million
* Canada, up 7% to $157 million, and
* Hong Kong, down 54 per cent to $127 million.

For more information, see Wine Australia’s Export Report

Cheers to some good news for the Australian wine industry

Australian wine exports increased by 41% in value to $2.64 billion and by 6% cent in volume to 647 million litres over the past 12 months, Wine Australia’s Export Report released today revealed. 

The average value of exports increased by 33% per litre, the highest average value in almost two decades.

Australian wine exports to mainland China exceeded $1 billion one year after the removal of tariffs. 

“The increase in average value is mainly due to the elevated level of premium wine shipments to mainland China, after tariffs on Australian bottled wine were removed at the end of March 2024," said Peter Bailey, manager for market insights for Wine Australia. 

"The 12 months ended March 2025 represented a full year’s worth of exports to mainland China since the tariffs were eliminated - resulting in 96 million litres of exports to the market, valued at $1.03 billion.

“While the total value of shipments to mainland China is now at a similar level to the years immediately before tariffs on Australian bottled wine came into force, volume in the last 12 months is 23% smaller than the 5-year average between 2016 and 2020 and 44% below the peak in 2018.

“Additionally, the average value of packaged wine shipped to mainland China was $23.00 per litre, much higher than any other major export market. The lower volume and high average value demonstrate that mainland China is a premium market for Australian wine and will therefore not solve oversupply issues in Australia.”

Exports to the rest of the world (excluding mainland China) declined by 13% to $1.62 billion and 9%in volume to 551 million litres, adding to the wine supply glut. 

This was the lowest value to the rest of the world in 10 years and lowest volume in over 20 years. While the decline in value was mainly driven by Hong Kong as sales transitioned to mainland China, the volume drop was due to the declines in exports key destinations such as the United Kingdom, United States, and Canada.

The global wine market is facing considerable headwinds which are impacting on results for other markets aside from mainland China and are unlikely to be resolved in the near-term, Wine Australia said. 

While there has been a long-term trend of consumers drinking less alcohol due to health and wellness concerns, more recent cost-of-living pressures could continue or potentially get worse in certain markets, given the economic and political turmoil taking place globally. 

Escalating trade wars have the potential to increase prices, complicate supply chains, and rapidly change the competitive landscape in key wine markets in the near-term.

The top five destinations by value were:

• Mainland China (up $1.01 billion to $1.03 billion)
• UK (down $12 million to $353 million)
• US (down $32 million to $323 million)
• Hong Kong (down $136 million to $154 million), and
• Canada (up $3.8 million to $151 million).

For more info see Wine Australia’s Export Report and Wine Australia’s Export Dashboard.

 

Good news - and bad news - for the Australian wine industry

There is good news - and bad news - for the Australian wine industry.

In the 12 months to December 2024, Australian wine exports increased by 34% in value to $2.55 billion and by 7% cent in volume to 649 million litres, Wine Australia’s Export Report released today shows.

That sounds great but the increase in value was a result of high levels of shipments to mainland China between April and December 2024, after tariffs on Australian bottled wine were removed at the end of March 2024.

In those nine months, 83 million litres of wine, worth $902 million, have been exported to mainland China.

The average value of exports to mainland China for the 12 months ended December 2024 was $10.79 per litre, contributing to a 24% increase in the average value of total packaged exports to $9.35 per litre – a record value.

But sales to key markets in the US and UK fell - with the threat of US tariffs looming.

“While there has been month-to-month volatility in the value of shipments to mainland China in the period since tariffs were removed, the performance is nonetheless very positive," said Peter Bailey, manager for market insights at Wine Australia said.

“Chinese wine consumption is much lower than it was before the import tariffs were imposed, however, so it will take more time before it becomes clear what the ‘new normal’ level of exports to mainland China will be, after this initial re-stocking period.

“Continued growth is not assured, and it is still important to focus on market diversification in a challenging global business environment.”

Outside of the unique circumstances relating to exports to mainland China, global alcohol consumption is facing numerous headwinds, and this is impacting the results to other markets.

In many established wine markets consumption is declining due to health and wellness concerns and the rising cost of living.

This has contributed to a global oversupply of wine and increased competition in already strained supply chains.

Australian wine exports to the rest of the world declined by 13% in value to $1.64 billion and 7% in volume to 565 million litres during the 12 months to December 2024.

The decline in value was largely driven by Hong Kong, after a large increase in shipments to this destination at the end of 2023 likely driven by some Australian exporters anticipating the removal of import tariffs in mainland China in early 2024.

A decline in unpackaged wine exports to the United States after a period of heightened exports further contributed to the volume decline.

Exports to North America declined by 5 per cent to $482 million, driven by the United States, with growth in exports to Canada offsetting some of the decline.

The top five destinations by value were: China (up $898 million to $907 million); UK (down $9 million to $352 million); US (down $38 million to $325 million); Hong Kong (down $125 million to $171 million) and Canada (up $13 million to $156 million).

For more information, see Wine Australia’s Export Report.

Image: Marco Simola, Scop.io  

Finally some good news for Australian wine producers

At last there is some good news for the Australian wine industry.

Australian wine exports increased in value by 17% to $2.2 billion in 2023–24, the highest level since the 12 months ended September 2021, Wine Australia’s Export Report released today reveals.

The growth in value was due to a surge in exports to mainland China in the last three months of the financial year, as Australian wine re-stocked supply pipelines following the removal of the duties on Australian bottled wine in China in late March.

But Wine Australia manager for market Insights, Peter Bailey, said that the rise in exports to mainland China is still a small fraction of the historical peaks achieved to the market.

“The surge in exports to mainland China towards the end of the financial year saw volume rise from 1 million litres to 33 million litres and value grow by $392 million to $400 million compared to last financial year,” Bailey said.

“While the figures are very positive, they represent the re–stocking of Australian wine in the pipeline of a major market after a long absence and do not necessarily equate to retail sales. It will take some time before there is a clearer picture of how Chinese consumers are responding to the increased availability of Australian wine in-market.

“Consumption of both domestic and imported wines in mainland China is less than a third of what it was six years ago and thus it is very unlikely that Australian wine exports will return to those previous peaks in the short to medium term.”

There were 574 companies exporting to mainland China in 2023–24, up from 115 in 2022–23. Prior to the imposition of duties, there were more than 2,000 companies exporting to China.

“The growth in value has seen mainland China return to the top export market by value,” Bailey said.

“However, the volume of exports at 33 million litres, is relatively small, equating to less than 5% of Australia’s wine grape harvest in 2024 and so is unlikely to make a significant impact on the current oversupply of red wine grapes, particularly in the big volume-producing warm inland regions.”

Exports to the rest of the world (excluding mainland China) declined by 4% ($68 million) to $1.8 billion and volume decreased by 5% (33 million litres) to 587 million litres.

This is the lowest volume exported to the rest of the world in a financial year since 2003–04.

“Global trading conditions remain very challenging with wine consumption continuing to fall in many markets around the world due to moderation trends and cost of living pressures," Bailey said.

"There are also enduring problems in shipping, with a shortage of ships globally and freight and charter rates on the rise.”

So the news is decidedly mixed.

But Australia is not the only country negatively impacted by these factors. Wine exports have also declined from other major wine producing countries.

In the 12 months ended April 2024, the volume of wine exported from Spain fell by 2%, France by 7%, Chile by 7%, South Africa by 12% and New Zealand by 14%.

Woops! Australian wine exports dip dramatically

It is not the news the Australian wine industry was hoping to hear.

Australian wine exports declined by 10% by volume to 625 million litres and 19% in value to $2.08 billion in the year ended June 30, 2022, Wine Australia’s latest Export Report reveals.

The decline in volume and value was not unexpected, as it was largely the result of the continued impact of the significant reduction in exports to mainland China, driven by high deposit tariffs imposed in November 2020.

This is expected to remain a significant influence on the moving annual total data of Australian wine exports until late 2022.

During the 2021–22 financial year, the operating environment for many Australian wine exporters had been extremely challenging with the significant decline in exports to mainland China, the ongoing impact of the pandemic - including severe shipping delays and increased freight costs - along with rising inflation, business costs and interest rates.

Wine Australia Manager, Market Insights, Peter Bailey said that while the total data showed declines, there were some encouraging signs in key and emerging markets.

“When mainland China is excluded from the data, exports increased by 5% in value to $2.06 billion, an increase of $105 million - the highest value since 2009–2010," he said. "This is despite volume declining by 3% to 619 million litres.

"The value growth for these markets was driven by a 9% increase in average value to $3.32 FOB per litre.

“The key contributors to the value growth included Singapore, the United States, Malaysia, Thailand, India and New Zealand.

In 2021–22, Australian wine exporters shipped wine to 113 destination markets. At a region-level, the most significant growth came from exports to south-east Asia, up 51% to $314 million, but also to North America, up 5% to $612 million, and the Middle East, up 48% to $20 million.

The top five markets by value were the US, UK, Canada, Hong Kong and Singapore.

Australian wine exports plunge dramatically

Australian wine exports decreased by 24% in value to $2.27 billion and 17% in volume to 638 million litres in the year ended September 2021, Wine Australia’s latest Export Report released today reveals.

Since the imposition of import tariffs in November 2020, exports of Australian wine to mainland China have dropped dramatically.

The value of exports in the 12 months to September 2021 were down 77% to $274 million. The number of exporters shipping wine to mainland China has also dropped, from 2241 in the year ended September 2020 to 750 in the year ended September 2021.

Wine Australia General Manager Corporate Affairs and Regulation Rachel Triggs said the overall declines reflect the challenges that the Australian wine sector has faced over the past 12 months.

“The decline of exports that we’re seeing now was amplified by the fact that there was a large increase in exports in September and October 2020, driven by exporters shipping wine into mainland China ahead of tariffs being imposed, into the UK ahead of the Brexit transition conclusion, and a surge in demand for Australian wine in the UK and US during the Covid-19 pandemic,” Triggs said.

“This front-loading of exports led to the majority of 2020 vintage wines being shipped earlier than usual resulting in the lowest inventory levels in 10 years coming into the 2021 calendar year.”

Australian wine exports excluding mainland China actually increased by 9% in value to $1.99 billion but decreased by 5% in volume to 618 million litres.

Australian wine was exported to 113 markets in the year ended September 2021. Pleasingly, several destinations recorded strong value growth in wine exports, including the United Kingdom, Hong Kong, Singapore, South Korea, Denmark, Thailand and Taiwan.

“Over the past 18 months, there has been a significant increase in exports to the UK, which has led to the market solidifying its place as Australia’s number one destination by volume and it has now overtaken mainland China as the No.1 destination by value,” Triggs said.

“Australian wine exporters are continuing to diversify their business models and ship to a broad range of markets. For example, in this report there was an increase in the number of exporters to the US; 269 exporters shipped wine to the market, which is the highest number of exporters since the Global Financial Crisis in 2009.”