Australia’s wine exports hit a 22-year low.

Australia’s wine exports have fallen to their lowest level in 22 years as weaker global demand cuts into sales in major markets, while New Zealand has managed to lift export volumes but with less money earned on each liter, according to new industry data released Tuesday.

The figures point to a tougher trading environment for producers across the southern hemisphere after several years of softer alcohol consumption worldwide. Drinks data firm IWSR has said global consumption of alcoholic beverages declined for a third straight year in 2025, as consumers facing tighter budgets and growing health concerns bought less.

For Australia, the downturn has been sharp. A report from Wine Australia said export volumes in the year ended June dropped below 600 million liters for the first time since 2004, reaching a 22-year low. Export earnings fell 7% to A$2.3 billion.

Paul Turale, Wine Australia’s general manager of market development, said the pressures on the sector were broad and persistent. In comments published with the report, he said the wine business was being reshaped by lower consumption, tighter regulation, climate volatility, trade uncertainty and changes in when and how consumers drink. The shift, he said, was not a short-term slowdown but a different demand environment.

New Zealand’s data showed a different pattern. Export volume rose to more than 306 million liters in the year to June, according to New Zealand Winegrowers, but value was nearly flat at about NZ$2.1 billion, up just 0.5%. The average price per liter fell to NZ$6.88 from NZ$7.27 a year earlier, a sign that the country is also feeling price pressure even as shipments hold up.

Charlotte Read, general manager of brands at New Zealand Winegrowers, described the market as a period of rapid change and adjustment. She said wineries were reassessing export markets and distributor relationships, trying to preserve value through premium positioning and making practical cost decisions in vineyards to better match supply with softer demand.

That combination of lower export volumes for one major producer and lower average returns for another matters beyond vineyard gate economics. It is likely to affect production planning, distributor negotiations and export contracts across the wine trade, and it could shape how broader beverage companies manage international portfolios in a market where demand is less predictable and pricing power is weaker.

The contrast between Australia and New Zealand was especially visible in the United Kingdom, the top market for Australian wine by volume. Wine Australia said Australian shipments to the U.K. fell 6% to 192 million liters in the year to June, while export value slipped 3% to A$340 million. Mid-priced wines were hit particularly hard, and the market fell to its lowest volume level for Australian wine in 25 years.

New Zealand moved in the opposite direction in Britain. Exports to the U.K. rose 16% by volume, while value increased 4% to NZ$426 million. The gain suggests New Zealand has been able to protect some market share in a key destination even as consumers pull back overall.

The United States remained difficult for both countries, though Australia’s losses were steeper. Wine Australia said its U.S. exports fell 15% in volume and 27% in value to A$229 million. The report cited tariff uncertainty and reduced consumer demand as major factors, and said the U.S. continued to be one of the largest contributors to the overall decline in Australian exports.

New Zealand also lost ground in the American market, though less dramatically. Its export volume to the U.S. declined 5%, and value fell 7% to NZ$720 million. For both countries, the U.S. remains one of the most important export destinations, so even modest declines carry weight for producers, importers and distributors.

Some of that lost momentum has been redirected elsewhere. Both Australia and New Zealand shipped larger volumes to Canada over the same period, according to the data cited by Farmers Weekly. For Australia, other Asian markets also offered some relief. While mainland China remained its largest market by value, exports there fell 15% to A$756 million, reflecting what the report described as a subdued recovery after tariffs were removed in 2024. Gains in Singapore, Thailand and Japan partly offset that weakness.

China, however, was one of New Zealand’s strongest growth markets this year, though from a smaller base. Export volume there surged 72%, and value rose 24% to more than NZ$69 million. Read said that trend reflected a favorable position in white wine, which accounts for roughly 90% of New Zealand’s production and aligns with growing demand patterns in parts of Asia.

New Zealand’s relative resilience does not mean the industry is insulated from strain. In Tairāwhiti, on the country’s east coast, grape supply has become a pressing issue. In May, the large producer Indevin cut back its grape intake in the region, and local reports said thousands of vines around Gisborne were later uprooted. The episode underscored how the weaker market is feeding back into planting decisions and regional wine economies, even in countries that are holding up better on export volumes.

Industry groups in both countries have framed the current moment as a reset rather than a brief downturn. Producers are reviewing sales channels, cutting costs, and trying to protect higher-value labels while reducing exposure to markets where discounting is becoming more common. The challenge is especially acute for wines aimed at the middle of the market, where household budgets are under pressure and consumers have more alternatives across beer, spirits and nonalcoholic drinks.

For Australia, the numbers show the scale of the adjustment now under way. For New Zealand, they show that volume growth alone is not enough if average returns continue to slide. Together, the data suggest that exporters in the region are entering a period in which market selection, pricing discipline and distributor strategy may matter as much as harvest size.