Australian wine exports fall below 600 million litres as global demand weakens

Export volume drops to a two-decade low

Australian wine exports fell below 600 million litres for the first time in more than 20 years as weaker global consumption reduced demand in the industry’s largest markets. According to Wine Australia’s latest Export Report, shipments in the 12 months to June 2026 declined 6% by volume to 598 million litres. Export value fell 7% to $2.30 billion.

Wine Australia linked the result to a broader decline in wine consumption over the past decade. The Chronicle reported that global consumption has reached a six-decade low amid greater health awareness, cost-of-living pressure and competition from pre-mixed drinks, craft products and other alternatives. These forces are changing both drinking occasions and the range of products competing for consumer spending.

China, the UK and the US lead the decline

The contraction was concentrated in Australia’s three largest wine markets: mainland China, the United Kingdom and the United States. Mainland China remained the biggest destination by value, but exports fell 15% to $756 million. Wine Australia said the initial recovery and inventory restocking that followed the removal of tariffs had ended, leaving trade more closely tied to underlying consumer demand.

Peter Bailey, Wine Australia’s Manager Market Insights, said Australia remained the leading source of imported wine in mainland China. However, he described the market as smaller and slower-growing than it had been before tariffs were imposed in late 2020. The shift from restocking to demand-led purchasing means future sales will depend less on rebuilding distribution inventories and more on the rate at which consumers buy wine.

The United Kingdom remained Australia’s largest market by volume, while the United States ranked second. Export volumes to both countries fell to their lowest level in 25 years. In the UK, most of the decline came from commercial and mid-priced products, while higher-value Australian wines proved more resilient. Australia also retained the leading share of the British off-trade wine market.

Conditions were broader-based in the United States, where Wine Australia identified weaker demand across most price categories. It attributed the pressure to falling wine consumption, stronger competition from domestic and imported producers, reductions in retailer inventories and consumers moving toward other alcoholic beverages. This leaves exporters with fewer opportunities to offset declining entry-level sales through premium products than in the UK.

Canada and Asian markets provide pockets of growth

Several markets expanded despite the overall downturn. Export value to Canada rose 20% to $188 million, the highest level in seven years, while volume increased 13%. Wine Australia said reduced availability of US wine during the Canada–US trade dispute helped Australian suppliers gain market share, although momentum softened near the end of the reporting period as those gains began to stabilise.

Asian destinations outside mainland China also recorded strong value growth, including Singapore, Thailand, Malaysia, Japan, South Korea and Taiwan. Singapore became Australia’s largest Asian wine market outside mainland China, while Thailand reached record export value on stronger demand for premium Australian wine. The contrasting results show that growth remains available in selected markets, but it is not yet large enough to offset weaker volumes across China, the UK and the US.