Australian wine exports declined in the year ended June 2026, reflecting ongoing weakness in global wine consumption and increasingly challenging conditions across many of Australia’s key export markets.
Export value fell 7 per cent to $2.30 billion, while export volume declined 6 per cent to 598 million litres, marking the first time export volumes have fallen below 600 million litres since 2004.
The fall mirrors broader global trends (Figure 1), with wine consumption reaching its lowest level since 1961, as consumers increasingly moderate alcohol intake, face cost-of-living pressures, and shift towards alternative beverages. Many competing wine-producing nations, including France, Italy, Spain, Chile and South Africa, also experienced declining export performance during the year.
Despite challenging global conditions, Australia wine exports performed relatively well in many key markets, generally maintaining or growing its share of the imported wine market over the year.
Figure 1: Australia wine exports compared to global wine consumption
Source: Wine Australia and IWSR1
China, UK and US drive overall decline
Australian wine’s three largest export markets – mainland China, the United Kingdom and the United States – all recorded declines.
Mainland China remained Australia’s largest market by value, despite exports falling 15 per cent to $756 million and 8 per cent in volume to 77 million litres. After the removal of tariffs in 2024, exports surged as distributors rebuilt inventories, but demand has since softened as the market transitioned from restocking to normal trading conditions. While China remains Australia’s leading premium market, wine consumption continues to face economic and structural headwinds.
The United Kingdom remained Australia’s largest market by volume. Exports declined 6 per cent to 192 million litres and 3 per cent in value to $340 million. Volume is at its lowest level in 25 years. The decline reflects broader structural changes within the UK wine market, including reduced consumption, increased alcohol duties, inflationary pressures and greater competition from alternative beverage categories and other wine-producing countries. While commercial and mid-priced wines experienced significant declines, premium Australian wines demonstrated greater resilience.
The United States experienced a more severe downturn, with export volume falling 15 per cent and value dropping 27 per cent to $229 million. Weak demand across nearly all price segments reflects long-term structural challenges, including declining wine consumption, changing consumer preferences and increased competition.
Canada and Asia key growth markets
In contrast, Canada emerged as a major growth market. Export value increased 20 per cent to $188 million and volume rose 13 per cent to 69 million litres. Growth was fuelled by market-share gains following reduced availability of American wines during Canada–US trade disputes. However, growth began to moderate in the latter part of the year, suggesting these gains may be temporary.
Asia, outside mainland China, was a significant source of growth. Singapore became Australia’s largest Asian market outside China, with export value increasing 11 per cent to $125 million. Thailand was a standout performer, achieving record exports with value rising 54 per cent, supported by growing demand for premium wines. Strong growth was also recorded in Malaysia, Japan, South Korea, Taiwan and Indonesia, reflecting rising incomes, expanding middle-class populations and increasing interest in wine across the region.
Premium wines continue to perform better
By product category, red wine remained the largest export segment, accounting for 55 per cent of export volume, although exports declined by both value and volume. White wine also declined but gained long-term share, while rosé remained a small but slowly growing category.
Export weakness was concentrated in lower- and mid-priced wines, while premium wines generally proved more resilient. Notably, exports in the $50–$99.99 per litre segment increased by 25 per cent.
Diversification increasingly important
Overall, the report highlights a period of transition for Australian wine exports.
Mature markets in Europe and North America continue to face structural declines, while future growth opportunities are increasingly concentrated in Canada and emerging Asian markets.
Success will depend on diversification, premiumisation and adapting to changing global consumer preferences.
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1 IWSR data is for calendar years. For example, the export data for financial year 2025-26 is compared with IWSR data for calendar year 2025.