Australia's wine export volumes have dropped to their lowest level in 22 years amid the global decline in alcohol consumption.

New figures from Wine Australia, the sector’s statutory body, show export volumes fell 6% to 598 million litres in the year to June.

This marks the first time since 2004 that annual export volumes have slipped below 600 million litres, the report said.

Exports also declined in terms of value, dipping 7% to A$2.3bn ($1.59bn).

Wine Australia said the result points to worsening trading conditions across several of the country’s biggest export destinations, against a backdrop of falling global wine intake that is now at its lowest level since 1961.

Peter Bailey, the market insights manager at Wine Australia, said: “Data from multiple sources suggests the decline in wine consumption globally is more than a short-term downturn – it's a reflection of changing consumer behaviour that is reshaping demand around the world.”

The decline was led by “weaker” demand in Australia’s three biggest export markets - mainland China, the UK and the US, as per findings.

Mainland China remained the largest market for Australian wine by value, even as exports there fell 15% to A$756m.

 Wine Australia said the earlier post-tariff rebound and restocking cycle had run its course.

“The market is no longer being driven by the restocking of Australian wine, rather we’re seeing a more mature and demand-led phase, reflecting a smaller and slower-growing Chinese wine market than existed prior to the imposition of tariffs in late 2020,” Bailey said.

In the UK, still Australia’s largest market by volume, and in the US, the second largest, shipment volumes fell to their lowest point in 25 years.

"Most of the decline is coming from commercial and mid-priced wines. Higher-value Australian wines have been more resilient and continue to attract demand in the UK market,” Bailey said.

“Unlike the UK, where premium wines have remained relatively resilient, the US data points to weaker demand across most price categories,” he added.

However, Canada stood out, with export value rising 20% to A$188m and volume up 13%.

Singapore, Thailand, Malaysia, Japan, South Korea and Taiwan also recorded value growth, with Singapore becoming Australia’s largest Asian market outside mainland China.