Australian wine exports have reported a $183 million hit due to a big decline in exports reaching their lowest level in 22 years. Wine Australia links the decline to reduced alcohol intake by consumers and tightening purchasing power due to cost-of-living pressures.
Wine exports dropped to below 600 million liters for the first time since 2004. Exports to Australia’s three largest markets marked significant reductions as global wine consumption decreased to the lowest mark since 1961.
China is still Australia’s biggest export market by value even though it recorded a 15% drop in volumes.
The fallout from the US tariffs has opened wide the Canadian market. Australian wine exports to Canada have increased by 20% due to the reduced availability of US wines.
Falling global wine consumption is not a problem Australian wine producers are facing alone. Global wine production has dropped from 30 billion liters in 2018 to 20 billion liters in 2026. Consumers are moderating alcohol intake and shifting to alternative beverages amid cost-of-living pressures.
Wine Australia sees big opportunities in low alcohol wines which is increasingly becoming an important and growing sector. It all about adapting and moving to where the market is.
