Australian wine exports hit 22-year low as global drinking declines

Exports of Australian wine have dropped below 600 million litres for the first time since 2004, marking a 22-year low and a $183 million loss for the industry. The decline mirrors a global slump in wine consumption, which has fallen to its lowest level since 1961 as consumers cut back on alcohol and tighten budgets. Sales to the three biggest markets—China, the United States and the United Kingdom—have all fallen, though shipments to Canada rose 20 percent after U.S. tariffs reduced American wine availability there.

Winemakers such as John Griffiths of Faber Vineyard report tighter margins and pressure to discount, while others like Penny Dickeson of Margaret River Wines note modest growth in sustainable and premium segments. The sector is shifting toward lighter varieties and mid-strength wines (7-9 % alcohol) to meet demand for moderation. Overall grape harvests remain below the ten-year average, underscoring the challenging market environment.