Australian wine production has increased amid a market where demand remains under pressure, a report by Wine Australia has said.
In a new report, local wine association Wine Australia said production exceeded sales in 2024–25, leading to a rise of 5% in national stock levels.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“The increase in Australian wine stocks without an increase in sales is likely to reduce future demand for wine and wine grapes,” Wine Australia said. “As a result, grape prices are unlikely to improve in the next few years.”
Results of a sales and inventory survey of large winemakers in Australia indicated that Australian wine production from the 2025 vintage was 1.13 billion litres, or 126 million 9-litre case equivalents.
This was 9% higher than in 2024 but 7% below the ten-year average of 1.22 billion litres.
The production of red wine increased by 15%, while the production of white wine increased by 2%. The survey also revealed that red wine returned to the larger share of production (52%) after falling below white in 2023–24.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataWine Australia manager of market insights Peter Bailey said: “Production was still below the ten-year average but it was the second vintage in a row where the crush increased from the 20-year low in 2023, despite the high levels of stock going into the 2025 vintage.”
The total volume of Australian wine sold in 2024–25 is estimated to be almost unchanged from the previous year at 1.08 billion litres, or 120 million nine-litre cases. Export sales accounted for 59% of sales by volume – an increase of one percentage point year-on-year
Export sales for Australian wine increased by 3% to 638 million litres, driven by growth in exports to mainland China, which increased by 53 million litres to 85 million litres in the last 12 months.
Bailey said those shipments represented the first full financial year of normal trading since the tariffs on Australian wine to mainland China were lifted.
Despite this, Mr Bailey noted that the volume exported to mainland China was less than half what it was at its peak in 2017–18.
“The difference in Australia’s current wine export volume to mainland China compared with its highest level equates to approximately 130,000 tonnes of wine grapes – mostly red,” Bailey said.
“We don’t expect to see exports return to the peak levels because the market in mainland China, as well as global conditions generally, are now very different.”
