Australian wine exports have fallen to their lowest level in more than two decades as a worldwide decline in wine consumption weighs on demand, according to a new industry report.
Exports dropped 7% in value to A$2.3bn (£1.1bn) and 6% in volume to 598 million litres in the year to June 2026, industry body Wine Australia has revealed in its annual Export Report, released today.
It is the first time export volumes have fallen below 600 million litres since 2004.
The decline comes amid a broader slowdown in global wine consumption, which Wine Australia says has fallen to its lowest level since 1961. The industry attributes the trend to changing consumer habits, cost-of-living pressures and growing demand for alternative alcoholic beverages.
Australia’s three largest export markets, which are mainland China, the United Kingdom and the United States, all posted declines over the past year.
Wine Australia manager market insights Peter Bailey said the challenges facing Australian exporters reflected wider changes across the global wine industry.
“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,” he said.
Bailey said the shift highlighted the importance of understanding changing consumer preferences and identifying markets where demand remained strong.
China slowdown after tariff recovery
Mainland China remained Australia’s largest export market by value despite a 15% decline to A$756m.
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Wine Australia said the fall followed the end of the initial recovery period after Chinese tariffs on Australian wine were lifted, with the market now entering what it described as a more mature phase driven by underlying consumer demand rather than stock replenishment.
Bailey said Australia continued to be the leading supplier of imported wine to China despite the weaker sales.
UK and US exports decline
The United Kingdom remained Australia’s largest market by export volume, while the United States ranked second. However, shipments to both countries fell to their lowest levels in 25 years.
Wine Australia said weaker sales in the UK were concentrated in lower and mid-priced wines, while premium Australian wines had proved more resilient.
In the United States, the report pointed to softer demand across most price categories, citing declining wine consumption, stronger competition from domestic and international producers, lower retailer inventories and changing consumer preferences.
Canada and Asia record growth
Despite the broader downturn, several markets posted strong gains.
Exports to Canada rose 20% in value to A$188m and 13% in volume, reaching their highest value in seven years. Wine Australia said the increase was partly driven by market-share gains following reduced availability of US wines during the Canada-US trade dispute, although growth slowed towards the end of the reporting period.
Several Asian markets outside mainland China also recorded higher exports, including Singapore, Thailand, Malaysia, Japan, South Korea and Taiwan.
Singapore became Australia’s largest Asian export market outside mainland China, while Thailand achieved record export values, driven by demand for premium Australian wines.
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