New Zealand Wine Exports Dip to NZ$2.1 Billion After Years of Steady Growth

The New Zealand wine industry is facing a period of uncertainty after three decades of strong international growth and a reputation for producing premium, sustainable wines. According to the New Zealand Winegrowers Annual Report for 2025, exports now account for 90% of all sales, with the industry’s global reputation helping to lift export values above $2 billion annually. However, the past year has brought new challenges, including a subdued 5% increase in export volumes and a slight decline in export value to NZ$2.10 billion (about $1.2 billion USD).

The United States remains the largest market for New Zealand wine, with exports valued at NZ$762 million, but this figure is down 3% from the previous year. The introduction of new tariffs in April and an additional increase in August have raised concerns among producers, though the full impact on export data is not yet clear. The industry is also contending with weak wine markets in other key destinations and a sluggish global economy.

Despite these headwinds, there has been notable growth in emerging markets. Exports to China rose by 47% to NZ$56 million, while shipments to South Korea nearly doubled, reaching NZ$44 million. Second-tier markets outside the US, UK, and Australia saw a 17% increase in exports over the past year, totaling just under NZ$600 million. This growth reflects both strong trade and consumer interest and the ability of wineries to develop new markets as supply improves.

Domestically, the situation is less positive. Wine consumption in New Zealand has dropped to its lowest level in more than two decades, with per capita sales at a 30-year low. Many smaller wineries rely on domestic sales, making this trend particularly concerning for innovative producers who use the local market as an incubator for new products.

On the production side, favorable weather conditions led to what could have been a record-breaking harvest in 2025. However, due to uncertain demand and high inventory levels from previous years, many wineries limited their grape intake. As a result, a significant quantity of grapes was left unharvested for the first time in years. Even so, the 2025 vintage is still the second-largest ever recorded by the industry.

Sustainability remains a central focus for New Zealand wine producers. The Sustainable Winegrowing New Zealand (SWNZ) program now certifies 98% of all vineyard area and over 90% of wine production facilities. The release of the 2025 Sustainability Report highlighted progress across climate change mitigation, water use efficiency, waste reduction, soil health, plant protection, and workforce development. The industry has set ambitious goals such as achieving net zero emissions by 2050 and zero waste to landfill.

Biosecurity is another priority area. This year saw the introduction of mandatory biosecurity planning for all SWNZ vineyards and continued work on readiness agreements for threats like Xylella fastidiosa, which causes Pierce’s disease in grapevines.

Research and innovation are being driven by the Bragato Research Institute (BRI), which launched a refreshed five-year strategy focused on grapevine improvement, vineyard innovation, winemaking innovation, and sustainable practices. Projects include developing new Sauvignon Blanc clones suited to changing climates and using UV-C light as an alternative to fungicides.

The industry’s advocacy efforts have focused on trade access and regulatory issues both domestically and internationally. While about 60% of export volume currently enjoys tariff-free access thanks to free trade agreements with countries like the UK and EU, recent developments in US trade policy have created new barriers. Domestically, rising excise taxes—up 25% over four years—have increased costs for producers selling within New Zealand.

Wine tourism continues to offer growth opportunities despite broader economic challenges. About 27% of tourists visiting New Zealand now include a winery visit in their itinerary—a rate higher than general tourist satisfaction levels.

The sector employs around 7,000 people full-time and relies on seasonal workers during peak periods. Programs such as Women in Wine and Young Viticulturist/Winemaker of the Year aim to attract and retain talent while promoting diversity and leadership within the industry.

Financially, New Zealand Winegrowers reported operating income of NZ$22.3 million for the year ended June 30, 2025—a 31% increase from the previous year—while total expenditure rose by 12%. The organization continues to invest heavily in research (NZ$5.6 million), international brand activity (NZ$2.2 million), sustainability initiatives (NZ$2.2 million), and events such as Pinot Noir New Zealand 2025.

Looking ahead, industry leaders acknowledge that market volatility and economic pressures are likely to persist but remain confident that New Zealand’s reputation for quality and sustainability will support future growth. Plans are already underway for major events like Sauvignon Blanc New Zealand 2027 to further promote the country’s wines on the world stage.

The report concludes that while immediate challenges are significant—including regulatory changes around gene technology and increasing demands for sustainability evidence—the fundamentals that have driven New Zealand wine’s success remain strong: distinctive wines that reflect both place and people, produced with a commitment to environmental stewardship and innovation.