Australia saw its wine exports fall last year, as they were hit by declines in mainland China and the US, two of the country’s key markets.
A report from Wine Australia, released today (28 January), shows the country’s total wine exports decreased 8% in value to A$2.34bn ($1.63bn), and dipped 6% in volume to 613 million litres in 2025.
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The average export value slipped 3% to A$3.81 per litre free on board.
According to the local wine association, the drop in exports was “largely driven” by a drop in the value of exports to mainland China and the US, and lower volumes to the UK.
Exports to mainland China, which Wine Australia said had the largest effect on export value decline, were down 17% year-on-year at A$755m as the post-tariff restocking surge faded.
China, which was Australia’s largest export market in 2025 in value terms, lifted its tariffs on Australian wine nearly in March two years ago.
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By GlobalDataReflecting on the report’s findings, Peter Bailey, manager of market insights for Wine Australia, said: “While the re-opening of the mainland China market at the end of March 2024 provided some temporary relief in the decline in total exports, the Chinese wine market is one third of the size it was five years ago – impacting both domestically produced and imported wines.”
“While shipment levels in the first three quarters after tariffs were removed were exceptionally positive, consumer demand has been subdued. Chinese consumer confidence has only made minor improvements since falling to an all-time low in 2022 during the Covid-19 pandemic, which has negatively impacted consumer spending.”
While red wine shipments to mainland China were “the driver of decline” over the past year, white wine exports surged by 77% in volume, which boosted Australian white wine’s export volume share from 7 to 15%, Bailey said.
More than half of Australia’s export volume goes to the UK and US, which are seeing “very tough headwinds” from shifting drinking habits and cost-of-living pressures, according to the industry body.
The UK, which was the second largest export destination in value terms, saw export value decline 3% to A$343m in 2025.
Citing Circana and SipSource data, Wine Australia said UK off-premise wine sales were down 4% over the past 12 months, while US wine depletions fell 8%.
The US, the third largest export destination in value terms, booked A$297m in export value, a 12% drop on the previous year.
However US shipment volumes were up in 2025 as a result of increased unpackaged [bulk] wine shipments.
“Premium” exports of Australian wine to the UK also strengthened, with the number of shipments above A$7.50 per litre up 15%. This was driven by varieties including Shiraz, Cabernet Sauvignon, Chardonnay, Grenache and Sauvignon Blanc.
Canada, along with certain Asian markets, reported a growth in the value of exports in the year.
Exports to Canada rose 12% in value to A$175m, supported by gains across packaged price points as consumers substituted away from US wines after their removal from liquor board shelves.
Across Asia, excluding mainland China, export value edged up 1% to A$494m.
Shipments to Singapore increased 18% to A$118m, overtaking Hong Kong for the first time since the 12 months to September 2020.
Thailand, Malaysia, Indonesia, Taiwan, Japan and South Korea also posted value growth at varying rates.
Bailey added that the “overall weakened export performance is consistent with the long-term trend of declining wine consumption in major markets around the world”.
Earlier this week, a new export report also showed South Africa’s wine export sales fell last year amid softening consumption and macroeconomic challenges.
The report from Wines of South Africa (WoSA) and South Africa Wine (SAW) showed export values in rand dropped 4.7% to R9.8bn ($607.6m) in 2025.
In US dollars, export value slipped 2.4% to $548.5m, while volumes dropped 13.8% to 264 million litres.
