Hard Pressed: Australian Wine Exports Slide 8% Amid Shifting Global Tastes
The global wine trade has had little respite over the past year, and new figures from Wine Australia show that 2025 delivered another tough test for Australian exporters.
The latest Export Report reveals the value of Australian wine shipments fell 8% year-on-year to $2.34 billion, reflecting a marketplace under pressure from cautious consumers, economic uncertainty, and evolving drinking habits worldwide. While the headline figure is sobering, the underlying story is one of transition rather than collapse.
China and the US: Still Struggling to Rebound
Much of the decline can be traced to two of Australia’s most important markets: Mainland China and the United States.
Hopes that the removal of Chinese tariffs in 2024 would spark a swift recovery have yet to materialise. Exports to mainland China dropped a further 17% to $755 million, underscoring the long road back to pre-pandemic demand.
Peter Bailey, Wine Australia’s Manager of Market Insights, notes that the Chinese wine market is now roughly a third of the size it was five years ago. While tariff removal provided a short-term boost, consumer confidence remains fragile after years of pandemic-related disruption.
That said, China is not a lost cause. While red wine volumes declined sharply, white wine exports surged by 77%, led by Chardonnay and Riesling. The shift suggests Chinese consumers are broadening their preferences, even as overall spending remains restrained.
A Global Pullback on Alcohol
Australia’s challenges mirror a broader international trend. According to Wine Australia, several forces are converging at once:
Health and wellness choices are driving more people toward low- or no-alcohol alternatives
Rising living costs are reducing discretionary spending, with wine increasingly viewed as an occasional indulgence
Supply chain disruptions, including ongoing conflicts and trade friction, are pushing up logistics costs
In the UK and US, which together still account for more than half of Australia’s export volume, consumption continues to soften. US wine sales fell below 300 million cases, the lowest level in two decades. Yet premium wines are proving more resilient: in the UK, exports priced above $7.50 per litre rose by 15%, indicating that quality-focused buyers remain active.
Where the Growth Is: Canada and Southeast Asia
While traditional markets faltered, other regions delivered welcome momentum.
Canada emerged as one of the strongest performers, with export value rising 12% to $175 million. As Canadian liquor boards reduced exposure to some US brands, Australian producers gained shelf space.
Momentum is also building across Southeast Asia, which is increasingly central to Australia’s diversification strategy:
Singapore recorded 18% growth, overtaking Hong Kong as a leading destination
Thailand, Malaysia, and Indonesia all posted gains, reflecting growing middle-class demand for Australian styles such as Shiraz and Sauvignon Blanc
What It Means for 2026
The 2025 results reinforce a clear message: the era of easy growth driven by a handful of major markets is over. Future success will hinge on adaptability and diversification — from leaning into white wine demand in China to courting premium consumers in mature markets and building brand presence across emerging Asian economies.
Australian winemakers may be exporting less volume, but those who can align with changing tastes and target the right segments still have room to grow.
