The 2026 vintage was the smallest in over 25 years at 1.27 million tonnes, according to Wine Australia’s National Vintage Report 2026 released today. The crush was down 300,000 tonnes (19 per cent) compared with 2025, and 25 per cent below its 10-year average of 1.69 million tonnes (Figure 1). This indicates the significant adjustment currently underway across the Australian wine sector.
Figure 1: Australian winegrape crush 2016--2026
Smaller crush driven by global decline in wine consumption
While seasonal conditions created significant challenges during the 2026 vintage, the scale of the decline suggests that market forces were the primary driver of the reduced crush. Four of the past five Australian vintages have been below the long-term average, with the five-year average (2021–2025) falling to 1.61 million tonnes – 84,000 tonnes below the 10-year average.
This sustained reduction in production reflects the industry's response to a decade-long decline in global wine consumption. According to the OIV1, worldwide wine consumption has fallen by 14 per cent since 2017, representing a reduction of around 40 billion litres. Global consumption is now estimated to have returned to levels last seen in 1961, despite the world's population growing from approximately 3 billion to 8.2 billion people over the same period.
Australia was largely shielded from these underlying trends during the temporary surge in China's imported wine demand. However, that period masked broader structural shifts in consumer behaviour, which have since been amplified by cost-of-living pressures and global trade disruptions. As these factors have intensified, Australia and other wine-producing nations have been forced to adjust production levels in line with softer demand and changing market conditions.
Global shift from red to white reflected in crush figures
Overall, the 2026 crush was 306,334 tonnes smaller than 2025, with red varieties accounting for 80 per cent of the decrease. The crush of red grapes was down by 243,560 tonnes (29 per cent) year-on-year, to be the smallest red crush since 2000.
Conversely, the crush of white grapes declined by a more modest 9 per cent, resulting in a big jump in white’s share of the total crush – up six percentage points to 53 per cent. This is only the second time in the past 12 years that whites have accounted for the majority of the crush (Figure 2).
Figure 2: Winegrape crush by colour 2016--2026 and white percentage of the total
The changing composition of the crush aligns with broader global consumption trends. According to IWSR data, demand for red wine has weakened significantly faster than demand for white wine since 2017. Global consumption of red wine is now almost 450 million cases below 2017 levels, compared with a decline of 119 million cases for white wine over the same (Figure 3).
Figure 3: Global consumption of wine by winestyle, 2017–2025 (Source: IWSR)
Much of the shift towards whites was driven by Australia's warm inland regions2, where red grape production fell by 33 per cent while white varieties declined by only 6 per cent. This reduced reds' share of the regional crush from 48 per cent to 40 per cent, with whites correspondingly increasing from 52 per cent to 60 per cent.
By comparison, the varietal mix in cool and temperate regions remained relatively stable. Red varieties accounted for 65 per cent of the crush in 2026, only marginally lower than the 66 per cent recorded in 2025. Red production declined by 22 per cent, compared with a 20 per cent decline for white varieties.
The more limited shift observed in cool and temperate regions may indicate that consumer demand for red wines from these regions remains relatively strong. It may also reflect lower inventory pressures compared with the warm inland regions. Nevertheless, given the ongoing global movement towards white wine consumption, the high share of red grapes in these regions could come under increasing pressure over the longer term.
Differences in varietal performance suggest adjustments to align with changing consumer preferences
The composition of Australia's top winegrape varieties remained largely unchanged in 2026, with the top 10 still comprising the same four red and six white varieties. These include the top three (Shiraz, Chardonnay and Cabernet Sauvignon) and the rest (Sauvignon Blanc, Pinot Gris/Grigio, Merlot, Pinot Noir, Semillon and Colombard). However, the significant decline in red grape production relative to whites has accelerated the shift in the varietal mix and strengthened the position of white varieties within the national crush.
Shiraz recorded the largest decline among the major varieties, falling 35 per cent from 2025 and relinquishing its long-held position as Australia's largest grape variety. Chardonnay, whose crush remained largely unchanged year-on-year, overtook Shiraz to become the largest variety by crush volume. As a result, Shiraz's share of the national crush fell to 19 per cent, marking the first time in 15 years that it has accounted for less than one-fifth of Australia's total crush.
Cabernet Sauvignon, Australia's third-largest variety, declined by 27 per cent, while Sauvignon Blanc fell by only 7 per cent. This further narrowed the gap between the two varieties to its smallest level on record. The relative growth of Sauvignon Blanc has been substantial over the past decade; in 2017 its crush was less than half the size of Cabernet Sauvignon's, whereas in 2026 it exceeded two-thirds of Cabernet's volume.
Pinot Gris/Grigio continued to strengthen its position among Australia's largest varieties, extending the lead it established over Merlot in 2025 as the fifth-largest variety. If current trends persist, Pinot Noir may also overtake Merlot, to become Australia's third-largest red variety, reflecting the broader movement away from traditional full-bodied red styles towards lighter and more versatile alternatives. See Figure 4.
Beyond the major varieties, most grapes experienced double-digit declines in 2026. However, several smaller varieties showed smaller declines or even growth, against the overall trend. Among red varieties, Montepulciano declined by just 9 per cent and Nero d'Avola by only 1 per cent, while Nebbiolo recorded a 6 per cent increase in crush.
Several white varieties also held up comparatively well. Chenin Blanc, Fiano, Gewürztraminer and Prosecco all recorded only modest declines, while Muscat à Petits Grains Blancs had a small increase.
Although these varieties represent a relatively small share of the overall crush and can be more susceptible to annual fluctuations, their stronger performance may provide insight into evolving consumer preferences. In particular, the results are consistent with growing demand for lighter red wines, alternative white varieties and sparkling wine styles, trends that continue to influence production patterns across the Australian wine sector.
Figure 4: Estimated crush of top 10 varieties over time
Adjustments to crush not reflected in improvements to grape prices
Despite the smallest Australian winegrape crush in more than 25 years, grape prices remained under pressure in 2026. The average value of purchased grapes fell by 6 per cent to $570 per tonne, indicating that the reduction in production has not yet translated into stronger demand for grapes.
Price declines were recorded across all major production segments. In cool and temperate regions, average values for both red and white grapes fell by 3 per cent on average year-on-year. In the warm inland regions, red grape prices declined by 1 per cent, while white grape prices recorded a more significant overall decrease of 12 per cent.
The broad-based decline in grape values is notable given the exceptionally low crush volume. A smaller vintage would typically be expected to reduce pressure on wine inventories and support grape prices, particularly for warm inland red varieties where oversupply has been a persistent challenge. Instead, the continued weakening in average prices suggests that demand for winegrapes remains subdued and that the industry is still working through excess wine stocks accumulated in recent years.
Price trends over the longer term reinforce this view. Average prices for warm inland red and white grapes have remained largely unchanged for the past four years, reflecting ongoing market constraints. In cool and temperate regions, grape prices have now declined for two consecutive years following a peak in 2024, suggesting that softer demand is increasingly being felt across all segments of the industry rather than being confined to inland production areas alone (Figure 5).
Figure 5: Average winegrape purchase value by source and colour 2016–2026
- The National Vintage report is available from www.wineaustralia.com/market-insights/national-vintage-report.
- Vintage survey statistics, including regional winegrape pricing, are available on Wine Australia’s Vintage Survey dashboard https://marketexplorer.wineaustralia.com/vintage-survey.
- The Grape Price Indicators dashboard https://marketexplorer.wineaustralia.com/grape-price-indicators for inland regions will be updated with the latest data when the Export Report is released on 29 July.
1 International Organisation of Vine and Wine, May 2026
2 The Riverland (South Australia), Murray Darling–Swan Hill (NSW and Victoria) and Riverina (NSW)