About the report

Data from a number of sources indicates that wine consumption is declining significantly in the Australian on-premise channel. In response, Wine Australia commissioned Square Holes to undertake research to better understand the evolving role of wine in this channel.

The objectives of the study were to explore consumption behaviours, on-premise motivations, consumption barriers, decision drivers and attribute preferences across demographics, sub-channels and occasions. The aim being to equip Australian wine producers with actionable insights to remain relevant and competitive in a changing cultural and commercial landscape.

The research was conducted as part of a project to improve market transparency in the wine sector, funded through a grant provided to Wine Australia under the Australian Government’s Improving Market Transparency in Perishable Agricultural Goods Industries program.

Report Summary

The findings highlighted a cultural shift in behaviours. Alcohol consumption is becoming more intentional, with wine most aligned with food centric or special social occasions. Younger consumers in particular are value-driven, cautious and drawn to experiences that feel purposeful.

Barriers such as price sensitivity, complex wine lists and limited staff support are all deterring engagement with wine on-premise, especially in casual or high tempo venues where cocktails and RTDs often dominate. While wine remains a strong option in formal settings and curated venues, its relevance diminishes in pubs, cafes and nightclubs where the social signals and overall experience are less aligned.

Key decision drivers to wine selection on-premise often revolves around price, familiarity, brand trust and setting cues, with preferences diverging significantly between confident and occasional drinkers.