Australia’s Winegrape Harvest Fell to Its Smallest Level in More Than 25 Years

Australia’s 2026 winegrape harvest fell to 1.27 million tonnes, the smallest vintage in more than 25 years, as growers and wineries cut production in response to weaker global demand and persistent stock overhangs, according to Wine Australia’s National Vintage Report 2026 released Wednesday.

The crush was down by 300,000 tonnes, or 19%, from 2025 and stood 25% below the 10-year average of 1.69 million tonnes. Wine Australia said the drop reflected not only difficult seasonal conditions during the growing season but also a broader market adjustment across the industry.

The report points to a long decline in wine consumption worldwide as the main force behind the smaller harvest. Citing data from the International Organisation of Vine and Wine, Wine Australia said global wine consumption has fallen by 14% since 2017, a decline of about 40 billion liters. Consumption is now estimated at levels last seen in 1961, even though the world’s population has grown sharply since then.

For Australia, that shift follows a period when strong Chinese demand for imported wine temporarily softened the impact of broader changes in drinking habits. Wine Australia said those underlying changes have become harder to ignore as cost-of-living pressures and trade disruptions have weighed on consumers and markets.

The decline was much steeper for red grapes than for white grapes, underscoring a change that has been building in wine markets for several years. Red grape crush fell by 243,560 tonnes, or 29%, from a year earlier, reaching its lowest level since 2000. White grape crush declined by 9%. As a result, white varieties accounted for 53% of the total crush, up six percentage points from the previous year. It was only the second time in the past 12 years that whites made up the majority of Australia’s crush.

Wine Australia linked that shift to global consumption trends. Using IWSR data, it said demand for red wine has weakened much faster than demand for white wine since 2017. Global red wine consumption is now nearly 450 million cases below 2017 levels, compared with a decline of 119 million cases for white wine over the same period.

The change was especially visible in Australia’s warm inland regions, including Riverland in South Australia, Murray Darling-Swan Hill in New South Wales and Victoria, and Riverina in New South Wales. In those areas, red grape production dropped by 33%, while white grape production fell by just 6%. Reds’ share of the regional crush fell from 48% to 40%, while whites rose from 52% to 60%.

In cooler and temperate regions, the mix changed far less. Red varieties accounted for 65% of the crush in 2026, compared with 66% in 2025. Red production there declined by 22%, while white varieties fell by 20%. Wine Australia said that may suggest demand for red wines from those regions remains relatively firmer than for inland reds, though it also warned that long-term pressure could build if global consumers continue moving toward whites.

Among individual varieties, Chardonnay overtook Shiraz as Australia’s largest grape by crush volume after Shiraz posted the sharpest fall among major grapes. Shiraz production dropped by 35% from 2025, pushing its share of the national crush down to 19%. Wine Australia said that was the first time in 15 years that Shiraz accounted for less than one-fifth of total crush volume.

Cabernet Sauvignon, the country’s third-largest variety, fell by 27%, while Sauvignon Blanc declined by only 7%, narrowing the gap between them to its smallest level on record. Pinot Gris/Grigio strengthened its position ahead of Merlot among the country’s largest varieties. Wine Australia said current trends could eventually allow Pinot Noir to overtake Merlot as Australia’s third-largest red variety.

Several smaller grapes held up better than the broader market. Among reds, Montepulciano fell by 9%, Nero d’Avola by 1%, and Nebbiolo rose by 6%. Among whites, Chenin Blanc, Fiano, Gewürztraminer and Prosecco posted only modest declines, while Muscat à Petits Grains Blancs recorded a small increase. Those movements were small in volume terms but may point to continued interest in lighter reds, alternative white varieties and sparkling styles.

Even with such a sharp reduction in supply, grape prices did not improve. The average value of purchased grapes fell by 6% to A$570 a tonne in 2026, according to the report. That decline suggests lower production has not yet translated into stronger buying demand from wineries.

Prices weakened across all major segments. In cool and temperate regions, average values for both red and white grapes fell by about 3% from a year earlier. In warm inland regions, red grape prices slipped by 1%, while white grape prices dropped by 12%.

That pricing pattern matters for the beverage sector because it suggests supply cuts alone are not yet enough to lift returns for growers or reset contract conditions for wineries. It also points to softer end-market demand and continuing pressure from excess wine inventories, factors that can shape production decisions, export strategies and purchasing plans across still and sparkling wine categories.

Wine Australia said a smaller vintage would normally be expected to ease inventory pressure and support grape prices, especially for warm inland red varieties where oversupply has been a long-running problem. Instead, average values remained weak, indicating that demand for winegrapes is still subdued and that producers are continuing to work through excess stocks built up in recent years.

Longer-term price trends reinforce that picture. Average prices for warm inland red and white grapes have been largely flat for four years. In cool and temperate regions, prices have now fallen for two straight years after peaking in 2024, suggesting weaker demand is spreading beyond inland areas.

The report presents the smaller harvest as part of a broader restructuring rather than a short-term anomaly. Four of the past five Australian vintages have come in below the long-term average. The five-year average from 2021 through 2025 was 1.61 million tonnes, or 84,000 tonnes below the 10-year average.

Wine Australia said updated inland-region grape price indicators will be released on July 29 alongside its next export report.