NEWS
AUSTRALIAN WINE EXPORTS HIT 22-YEAR LOW AS TOP MARKETS DECLINED
By Staff Reporter
31-7-2026
Source: Wine Australia
Australian wine exports have slumped to its lowest volume level in 22 years, official industry data confirms, as fading demand across three core markets overshadows robust growth in Canada and several Southeast Asian destinations.
Wine Australia’s latest export report covering the 12 months to 30 June 2026 recorded total wine shipments falling 6 percent by volume to 598 million litres, the first time volumes slipped below 600 million litres since 2004.
Export value retreated 7 percent to AUD2.30 billion (USD1.616 billion), reflecting widespread contraction in global wine consumption, which has fallen to its lowest level since 1961 amid cost-of-living pressures and shifting drinking habits.
Mainland China retained its position as Australia’s most valuable export destination, yet export value declined 15 percent to AUD756 million.
The downturn marks the end of a sharp post-tariff restocking boom after Beijing lifted punitive duties on Australian bottled wine in March 2024.
Trade analysts explained the Chinese market has entered a demand-driven phase rather than inventory-led growth, with corporate hospitality and gifting consumption yet to rebound to pre-pandemic levels.
Even so, Australian wine remains the leading imported wine category in China by value.
Headwinds intensified in United States and Europe for Australian wines. Shipments to the US tumbled 27 percent in value to AUD229 million, with weaker demand across nearly all price tiers, while export value to the United Kingdom, Australia’s largest market by volume, edged down 3 percent to AUD340 million.
Volumes to both the US and UK markets sank to 25-year lows. Commercial mid-range wines bore the brunt of the UK decline, though premium Australian labels posted resilient growth.
However, Canada delivered standout growth, with export values jumping 20 perent to AUD188 million.
Within Asia Pacific, Singapore became Australia’s top regional market outside China, rising 11 percent to AUD125 million, while Thailand, Malaysia, Indonesia, Japan and South Korea all registered improved import values for Australian wine.
These growing Southeast Asian markets have become strategic priorities for local wineries seeking to diversify away from reliance on China, UK and US consumers.
(the writer can be contacted at: info@thewinechronicle.com)
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