Australia’s wine sector is showing early signs of recovery after a difficult period, but the improvement remains uneven and uncertain. The latest Agri InFocus report from ANZ indicates that wine exports increased by 13 percent in value to $2.48 billion for the year ending June 2025. This growth was largely due to renewed trade with mainland China after the reopening of that market.
Export volumes also rose by 3 percent to 639 million litres, though most of this growth came from China, while results in other markets were mixed.
Michael Whitehead, ANZ Executive Director of Agribusiness Insights, said: “China has re-emerged as a vital outlet for Australian wine, but the market itself is far smaller than it once was, meaning the sector cannot rely on China alone to secure its future.”
Exports to China reached 85 million litres worth $893 million, more than double compared to last year. However, export values in the June 2025 quarter were down by 35 percent compared to the same period in 2024 when restocking demand peaked. This suggests future trade may be less robust.
China’s total wine consumption has dropped sharply—from 1.5 billion litres in 2019 to just 550 million litres in 2024—making it a more competitive environment even as Australia regains access.
Other key markets showed varied performance:
- Exports to the United States fell by 12 percent to $314 million—the lowest level in two decades—due to changing health perceptions, declining youth interest, and stronger competition from spirits.
- Exports to the United Kingdom remained steady at $350 million.
- Canada saw a rise of seven percent in export value.
- Southeast Asia continued gradual growth.
Domestically, Australia’s winegrape crush for 2025 increased by 11 percent over last year’s figure, reaching 1.57 million tonnes. However, this remains about eight percent below the ten-year average of 1.71 million tonnes.
Despite higher production levels, an oversupply of red varietals such as Shiraz and Cabernet Sauvignon continues to affect returns because global consumer preferences are shifting toward whites, sparkling wines and premium alternatives.
On a global scale, conditions remain tough: world wine consumption dropped to its lowest point since records began sixty-three years ago—21.4 billion litres in 2024—as younger consumers increasingly choose beer, spirits or non-alcoholic drinks instead.
“The future lies in diversification, premiumisation and adapting to new drinking habits,” Whitehead said. “This includes a stronger focus on whites, sparkling and premium wines, alongside emerging markets.”
A weaker Australian dollar and better freight conditions provide some grounds for cautious optimism looking ahead into fiscal year 2025–26. The industry is recovering ground but faces ongoing challenges aligning supply with demand and repositioning products for changing tastes.
Further details are available in ANZ’s Agri InFocus report for Spring 2025.