Australian wine exports fell as demand weakened in China, Britain and the United States

Australian wine exports fell in the year ended June 2026 as weaker demand in China, the United Kingdom and the United States added to a broader global slowdown in wine consumption, according to a report released Wednesday by Wine Australia.

The industry body said export value declined 7% to A$2.30 billion, while export volume dropped 6% to 598 million liters. It was the first time export volume had fallen below 600 million liters since 2004.

Wine Australia linked the decline to tougher trading conditions across major markets and to a long-running drop in wine consumption worldwide. The group said global wine consumption has fallen to its lowest level since 1961 as consumers moderate alcohol intake, deal with cost-of-living pressure and increasingly choose other drinks.

That shift matters beyond wine because it points to a wider change in how people are drinking. For producers, importers, retailers and hospitality operators across the beverage business, the latest figures add to evidence that consumers are moving spending toward other alcohol categories and lower-alcohol options, forcing companies to rethink pricing, product mix and market strategy.

Peter Bailey, manager of market insights at Wine Australia, said the pressures facing Australian exporters reflect a structural change rather than a short-term setback.

“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,” Bailey said in the report. He said that made it more important for exporters to identify where demand still exists and which products and occasions are driving purchases.

Even with the overall decline, Bailey said Australian wine had generally maintained or increased its share of imported wine in several key markets over the past year.

Mainland China remained Australia’s largest export market by value, but shipments there fell 15% to A$756 million. Wine Australia said the earlier rebound after tariffs were removed had eased and that the restocking phase had largely ended.

Bailey said Australia remained the leading source of imported wine in mainland China, but described the market as entering a more mature phase driven by underlying demand rather than inventory rebuilding. He also said the Chinese wine market is now smaller and growing more slowly than it was before tariffs were imposed on Australian wine in late 2020.

The United Kingdom remained Australia’s largest market by volume, and the United States stayed second. Export volume to both countries fell to their lowest level in 25 years.

In the U.K., Wine Australia said most of the decline came from commercial and mid-priced wines, while higher-value bottles proved more resilient. Bailey said Australia continued to hold the leading share of the British off-trade imported wine market despite difficult conditions.

The picture was weaker in the United States. Export value to that market dropped 27% to A$229 million, while volume fell 15% to 95 million liters. Bailey said demand softened across most price categories, suggesting that Australia’s problems there go beyond entry-level wines. He pointed to declining wine consumption, stronger competition from domestic and imported producers, retailer inventory cuts and changing consumer preferences toward alternative alcoholic beverages.

Those U.S. trends are closely watched across the drinks trade because they affect shelf space, distributor priorities and promotional spending well beyond imported wine. If retailers continue reducing inventories and shoppers keep shifting into other categories, pressure could spread across premium and mainstream beverage segments alike.

The top five export markets by value were mainland China at A$756 million, down 15%; the United Kingdom at A$340 million, down 3%; the United States at A$229 million, down 27%; Canada at A$188 million, up 20%; and Singapore at A$125 million, up 11%.

By volume, the top five markets were the United Kingdom at 192 million liters, down 6%; the United States at 95 million liters, down 15%; mainland China at 77 million liters, down 8%; Canada at 69 million liters, up 13%; and New Zealand at 26 million liters, up 1%.

Canada was one of the strongest performers in the report. Export value rose 20% to A$188 million, its highest level in seven years, while volume increased 13%. Wine Australia said that gain came even as wine consumption in Canada generally declined.

The report attributed much of Canada’s growth to market-share gains after reduced availability of U.S. wines during the Canada-U.S. trade dispute. Bailey said momentum softened toward the end of the period, suggesting those gains may now be stabilizing rather than accelerating.

Several Asian markets outside mainland China also posted strong growth. Wine Australia reported significant increases in export value to Singapore, Thailand, Malaysia, Japan, South Korea and Taiwan. Singapore became Australia’s largest Asian market outside mainland China. Thailand reached record export values, helped by stronger demand for premium Australian wines.

The divergence between weaker traditional destinations and stronger pockets of growth in Asia highlights how exporters are being pushed to rely less on a few large markets. It also shows how premium positioning is becoming more important as lower-priced segments come under pressure from inflation, moderation and competition from beer, spirits, ready-to-drink products and alcohol-free alternatives.

Wine Australia said all figures were measured on a free-on-board basis, meaning they reflect the value of goods when placed on an international carrier at Australia’s border and exclude international insurance and transport costs.

The report presents an industry facing both cyclical trade pressures and a deeper change in consumer behavior. For Australian producers, especially those exposed to lower-priced exports or heavily dependent on a small number of overseas buyers, that means slower growth prospects unless they can find stronger demand in resilient premium niches or expanding markets in Asia and North America.