Australia’s 2026 wine harvest fell to its lowest level in 25 years

Australia’s 2026 wine harvest fell to its lowest level in 25 years, a sharp drop that reflects weak global demand, extreme weather and a continuing imbalance in the country’s wine market.

Wine Australia said the total crush is estimated at 1.27 million tonnes, down 19% from 2025 and about 25% below the industry’s 10-year average. The value of the vintage fell even more, dropping 26% to A$837 million.

The figures point to a deeper adjustment in one of the world’s major wine exporters. Peter Bailey, manager for market insights at Wine Australia, said the country has now recorded four straight vintages below the long-term average, which suggests “an underlying reset” in the volume of grapes needed by winemakers as global demand changes.

Red grapes accounted for most of the decline. Wine Australia said red varieties made up 80% of the overall decrease, while white grapes fell by 9%. White varieties represented the majority of Australia’s crush for only the second time in the past 12 years, a shift that the industry body linked to changing consumer preferences.

Even with a much smaller crop, grape prices continued to fall, underscoring the pressure on growers and wineries. Average grape prices were 6% lower than in the 2025 harvest, despite vineyard removals and closures in some areas. That trend suggests that lower production alone has not been enough to restore pricing power, especially in red wine.

Sandy Hathaway of Wine Australia said the smaller harvest will translate into about 33 million fewer nine-litre cases this year. She said that decline reflects weaker global consumption and Australia’s ongoing surplus of red wine.

Bailey said it was troubling that there was still no sign of recovery for reds after such a large production adjustment and that prices for white grapes were also starting to decline. His comments highlight how broad the downturn has become across categories that had previously shown more resilience.

Weather added another layer of strain during the growing season. According to Wine Australia’s National Vintage Survey, producers reported late frosts, heatwaves and flooding in several regions. Those conditions reduced yields at a time when returns were already under pressure.

Hathaway said many grape growers had wanted to see a smaller crush because world wine consumption is falling. She described the lower output as a necessary adjustment, even though it means less income flowing into wine regions.

The downturn matters beyond Australia’s vineyards because the country remains an important supplier in global wine trade. A harvest this small could tighten export availability in some segments and affect pricing decisions across international markets, even as weak consumer demand continues to weigh on margins throughout the beverage business.

For producers inside Australia, the latest vintage shows how difficult it has become to balance supply with demand. Lower volumes would normally support prices, but continued declines in grape values suggest that oversupply, especially in reds, is still working through the system. That leaves growers facing weaker returns while wineries adapt to slower sales and shifting tastes in key markets.

The result is a harvest that is not only historically small but also economically strained, with lower tonnage, lower value and little immediate relief from either market conditions or climate pressure.