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Canada and Asia offer silver lining amid daunting global environment for wine

Market Bulletin | Issue 361
22 Apr 2026
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Global conditions remain tough for wine exporters, with higher costs and softer consumer demand continuing to weigh on performance. 

The latest wine export data from Wine Australia, available from today, and shows that in the 12 months ended March 2026, Australian wine exports fell by 14 per cent in value to $2.28 billion and 7 per cent in volume to 603 million litres. Total volume was 15 per cent below the 10-year average of 711 million litres.

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The year-on-year decline in both volume and value was heavily influenced by shipments to mainland China stabilising two years after import tariffs on bottled Australian wine were removed. 

While markets such as the United Kingdom (UK) and the United States (US) also experienced a decline in wine exports, momentum is building elsewhere. Canada delivered strong growth, with export value up 24 per cent, while demand across destinations in Asia, excluding mainland China and Hong Kong, saw exports to the region grow by 19 per cent in value. 

Figure 1: Rolling 12-month volume and value of Australian wine exports

Dual-axis line chart showing the rolling 12-month volume and value of Australian wine exports from January 2016 to January 2026. Export volume and value peaked around 2019–2021 before declining sharply, then partially recovering in 2024 following the resumption of trade with China. By January 2026, export volume was 711 million litres, close to its 10-year average, while export value was A$2.39 billion, below its 10-year average despite recent growth.

Destination regions

In the 12 months to March 2026, 1,545 exporting businesses shipped Australian wine to 111 destinations. 

The largest region by volume for Australian wine exports is Europe, which declined by 9 per cent to 265 million litres in the past 12 months. The largest driver of the decline was shipments to the UK, followed by Germany. However, there were some positive results in packaged exports to the Netherlands and unpackaged exports to Denmark. Exports to Spain also grew, but it is likely that this wine is being on-shipped to other European destinations.  

Exports to Australia’s second largest export region, North America, increased by 5 per cent in volume to 174 million litres, owing to strong growth in exports to Canada outweighing a decline in exports to the US. 

Figure 2: Volume of wine exports by destination region

Bar chart showing Australian wine export volumes by destination region in 2026, with percentage change from the previous year. Europe remained the largest export destination despite a 9%25 decline, while North America was the second largest and grew by 5%25. South East Asia was the strongest-growing region, up 7%25, while East Asia recorded the largest decline among major regions, down 19%25.

There were mixed results across destinations in Asia. While exports to mainland China and Hong Kong declined, shipment levels increased to many other major destinations – including Singapore, Thailand, Malaysia, Indonesia, Japan, and South Korea. 

Mainland China

Exports to mainland China declined by 29 per cent in value to $728 million and 25 per cent in volume to 73 million litres. The average value of exports declined by 6 per cent to $10.03 per litre. 

Import tariffs on Australian bottled wine were removed in late March 2024. In the following year, shipments increased rapidly, with value recovering nearly to levels seen before tariffs (notably this was not also the case for volume). In the past 12 months, shipment levels have been adjusting to meet market demand with volume and value stabilising, particularly in the past 6 months (see Figure 3). 

Figure 3: Australian wine exports to mainland China

Combination bar and line chart showing Australian wine exports to mainland China from March 2024 to March 2026. Export volume and value surged following the removal of tariffs, with volume peaking at around 97 million litres and value exceeding A$1 billion in early 2025. Exports moderated through 2025 but remained strong at around 72 million litres and A$730 million by March 2026.

United Kingdom

In the 12 months ended March 2026, Australian wine exports to the UK declined by 5 per cent in value to $336 million and 9 per cent in volume to 190 million litres. The decrease is a continuation of the long-term decline in shipment volume after increases in the COVID-19 era. The downward trend has been exacerbated in recent times by increasing costs, including the new alcohol duty regime introduced in 2024, and suppressed demand due to on-going cost-of-living concerns. 

About 91 per cent of exports to the UK are unpackaged (to be bottled in-market). Unpackaged exports declined by 7 per cent in volume, while packaged exports declined by 18 per cent in volume. However, premium exports (with an average value of $10 per litre and above) grew by 16 per cent in volume in the past 12 months and by an average of 5 per cent per year over the past five years. This growth was driven by many of the major varieties – including Shiraz, Chardonnay, Cabernet Sauvignon and Pinot Noir.

Figure 4: Australian wine exports to the United Kingdom

Combination chart showing Australian wine export volume and value to the United Kingdom from March 2024 to March 2026. Export volume gradually declined, while export value remained relatively stable, indicating stronger average export prices. The UK remained Australia's largest export market by volume throughout the period.

United States

Australian wine exports to the US declined by 22 per cent in value to $251 million and 1 per cent in volume to 105 million litres. The average value of exports declined by 21 per cent to $2.39 per litre FOB. 

More than 90 per cent of the decline in value came from exports priced between $2.50 and $4.99 per litre FOB. This is reflective of a 9 per cent decline[1]  in the overall market segments valued at US$4 and US$11 per bottle in the US – more than 90 per cent of Australian wine sales in the US are within these segments. 

Figure 5: Australian wine exports to the United States

Combination chart showing Australian wine export volume and value to the United States from March 2024 to March 2026. Export volume remained relatively stable at around 105–125 million litres, while export value declined steadily from approximately A$350 million to A$250 million. The chart highlights weakening value returns despite stable shipment volumes, indicating increased pressure on export prices in Australia's largest export market by value.

According to IWSR, wines sales in the US declined by 6 per cent in volume in 2025, driven by the cost-of-living crisis. The consumer confidence index in the US has fallen to 96.6, according to the OECD, indicating a more pessimistic outlook on the future than other Western economies (Australia and the UK are both around 100 – indicating a neutral outlook)[2]. Consumers are becoming very selective in their alcohol choices. This is reflected in sales figures by price segment, where the market above $15 per bottle has been much more resilient than lower price segments. 

Nevertheless, because of this consumer uncertainty and tariffs increasing costs for importers and producers, all major sources of imported wine have declined in value in the past 12 months (see Figure 6), including France, Italy, New Zealand and Spain. 

Figure 6: Value of wine imported into the United States, 12 months ended February

Grouped bar chart comparing the value of wine imported into the United States from major supplier countries in the 12 months ended February 2026, alongside values for 2024 and 2025. France and Italy remained the largest suppliers by value despite declines of 21%25 and 17%25 respectively. Import values fell across all major countries, with Australia down 16%25 to around US$200 million, reflecting broader weakness in the US imported wine market.

(Source: Trade Data Monitor)

Canada

Australian wine exports to Canada increased by 24 per cent in value to $188 million and 15 per cent in volume to 69 million litres. The average value per litre increased by 8 per cent to $2.73 per litre FOB. 

Over the past year, many Australian brands have experienced an increase in sales in Canada, following the removal of American wines across Canadian liquor boards in response to US tariffs on Canadian products, which were imposed in early 2025. Australian wine has performed very well compared to other source countries – growing by 29 per cent in sales volume year-on-year in Ontario, 5 per cent in British Columbia and 4 per cent in Quebec . The market leading performance in Ontario has translated to a growth in Australia’s market share in the province from 6 to 9 per cent over the past year. 

The growth in exports to Canada has come from across the price spectrum, although wines above $5 per litre have grown at slightly stronger rates. Cabernet Sauvignon is the key growth varietal, with many Australian regions performing well.

Figure 7: Australian wine exports to Canada

Combination chart showing Australian wine export volume and value to Canada from March 2024 to March 2026. Export volume remained relatively stable at around 60–70 million litres, while export value increased steadily from approximately A$145 million to A$185 million. The chart highlights growth in export value despite flat volumes, indicating improving average export prices and growing demand for higher-value Australian wine.

Asia (exc. Mainland China and Hong Kong)

Asia, excluding mainland China and Hong Kong, grew by 19 per cent in value to $393 million and 7 per cent in volume to 44 million litres. This represents an acceleration of a long-term growth trend (7 per cent in value per year over the past five years). 

The key drivers were Singapore (a key shipment hub in the region) and the emerging wine markets of Thailand and Malaysia. Exports to Thailand increased to a record value of $64 million. Importantly, the more developed wine markets of Japan and South Korea also experienced growth – by 10 and 6 per cent respectively (see Figure 8). 

Figure 8: Change in value of exports – top 10 Asian destinations (exc. Mainland China and Hong Kong)

Bar chart showing the year-on-year change in value of Australian wine exports to the top 10 Asian destinations, excluding mainland China and Hong Kong. Export value increased in six markets, led by Indonesia (+114%25), Malaysia (+41%25), Thailand (+35%25) and Singapore (+17%25). Declines were recorded in the Philippines (-22%25), Taiwan (-3%25), India (-1%25) and Vietnam (-2%25), highlighting strong growth across much of Southeast Asia despite mixed results elsewhere.

For more detailed data, please see the Export Dashboard
 


1. Circana.

2. The Consumer Confidence Index can be found on the “Global context” page of Wine Australia’s Grape Price Indicators Dashboard


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This content is restricted to wine exporters and levy-payers. Some reports are available for purchase to non-levy payers/exporters.