2026-08-03
Australian wine exports fell to their lowest level in more than two decades in the year through June, as weaker global wine consumption cut demand in the country’s biggest overseas markets.
Wine Australia, the industry body, said exports dropped 7% in value to A$2.3 billion and 6% in volume to 598 million liters in the 12 months ended June 2026. It was the first time export volume had fallen below 600 million liters since 2004.
The decline reflects a broader slowdown in wine drinking around the world. Wine Australia said global wine consumption has fallen to its lowest level since 1961, as consumers drink less alcohol, face pressure from higher living costs and shift toward other beverages.
Peter Bailey, manager of market insights at Wine Australia, said the pressures on Australian producers were part of a wider change in the industry 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.
The drop in exports was driven mainly by weaker sales in mainland China, the United Kingdom and the United States, Australia’s three largest foreign markets for wine.
Mainland China remained Australia’s biggest export market by value, but shipments there fell 15% to A$756 million. Wine Australia said that decline followed the end of the initial rebound after Chinese tariffs on Australian wine were lifted. The market is now moving away from restocking and into what the group described as a more mature phase shaped by underlying consumer demand.
Australia had been shut out of China’s market for years after Beijing imposed heavy tariffs on Australian wine in late 2020 during a period of political tension between the two countries. Those tariffs were removed in 2024, leading to a sharp recovery in shipments. The latest figures suggest that rebound has slowed as Chinese demand settles at a lower level than before the trade dispute.
Bailey said Australia still remained the leading source of imported wine in mainland China despite the decline.
The United Kingdom remained Australia’s largest export market by volume, with shipments totaling 192 million liters, down 6% from a year earlier. Export value to Britain fell 3% to A$340 million. Wine Australia said most of the weakness came from lower-priced and mid-priced wines sold through retail channels, while premium bottles held up better.
The United States, Australia’s second-largest market by volume and third-largest by value, posted one of the steepest declines. Export value fell 27% to A$229 million and volume dropped 15% to 95 million liters. Wine Australia said softer demand stretched across most price categories in the American market.
The report pointed to several reasons for the U.S. decline: falling wine consumption, stronger competition from domestic and imported brands, lower inventories held by retailers and changing consumer preferences toward other alcoholic drinks.
Together, those results pushed shipments to both Britain and the United States to their lowest volume levels in 25 years.
Even with the broad downturn, some markets expanded. Canada was one of the strongest performers. Export value there rose 20% to A$188 million, its highest level in seven years, while volume increased 13% to 69 million liters.
Wine Australia said part of that growth came from market-share gains during trade tensions between Canada and the United States, which reduced the availability of some American wines. The group added that growth slowed toward the end of the reporting period, suggesting those gains may be leveling off.
Several Asian markets outside mainland China also recorded increases. Export values rose in Singapore, Thailand, Malaysia, Japan, South Korea and Taiwan. Singapore became Australia’s largest Asian export market outside mainland China, with exports rising 11% to A$125 million. Thailand reached record export values, helped by demand for premium Australian wines.
By value, Australia’s five largest export markets 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%.
The figures add to pressure on Australian winemakers already dealing with oversupply at home and slower growth abroad. For exporters, the latest report shows that even after China reopened its market, recovery has not been enough to offset weaker demand across much of the world wine business.