Australia’s wine industry faces $180m blow as exports hit lowest figure in 22 years
Australian winemakers have been dealt a $180 million blow to exports, with the industry bleeding millions of litres in lost sales over the past 12 months.
Wine exports plunged by seven per cent in the year ending June 30 to $2.3 billion, representing 41 million fewer litres of wine, according to Wine Australia’s Export Report.
Australia’s wine exports have plunged to a 22-year low. Getty Images/iStockphoto
The total export volume dipped below 600 million litres for the first time since 2004.
Wine Australia’s report released on Wednesday paints a grim picture for the struggling industry both locally and globally.
Makers are grappling with a startling generational shift in drinking habits.
According to the report, worldwide wine consumption has also fallen to its lowest level since 1961.
The report noted cost of living pressures and a move towards alternative beverages as the underlying reason for consumers eschewing wine.
“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,” Wine Australia manager of market insights Peter Bailey said.
Australia’s weak wine exports has been driven mostly by slower demand in our three biggest markets: mainland China, the UK and the US.
Exports to China plunged by $756 million, blamed partly on tariffs, and volumes to the UK fell to a 25-year low.
Sales to the US also dipped by around 27 per cent.
“Most of the decline is coming from commercial and mid-priced wines,” Bailey added.
Winemakers are grappling with a startling generational shift in drinking habits. iStock
“Higher-value Australian wines have been more resilient and continue to attract demand in the UK market.”
Red wine is Australia’s best export. Shiraz is the top variety for exports at 144 million litres for the year, down 10 per cent.
Chardonnay is the top-selling white wine, but was still down 12 per cent to 121 million litres.
This year’s report represents a sharp change in just 12 months.
The 2025 Wine Australia’s Export Report found exports had actually increased by 13 per cent in value to $2.48 billion and 3 per cent in volume to 639 million litres.
Australia’s downturn is being felt across the globe – other key wine-exporting countries including France, Italy, Spain, the US and South Africa also recorded poor performance over the past year.
Oakridge Wines in Victoria is one of the key winery assets that Endeavour is offloading. Oakridge Wines
Australia’s shrinking vineyards
Endeavour Group, the owner of Dan Murphy’s and BWS, announced in May that it would move away from vineyards and wineries in SA, Victoria and Tasmania.
Endeavour will close more than half of its wineries in a “strategic transformation” of its wine business, slashing its winery assets from seven to just three.
Award-winning wine label in Heartland Wines in South Australia collapsed this month, dealing another blow to the country’s floundering industry.
Famed winemaker Darren De Bortoli also decided to uproot shiraz vines in the Riverina and Rutherglen regions in NSW and told A Current Affair it was due to a “nasty” downturn in wine sales.
“We just can’t continue to grow grapes and make wine and have the market prices way below the cost of production,” he said.
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