Wine industry in Australia - statistics & facts
Is Australia’s wine glass half empty? In 2023, the country’s wine production volume hit the bottom of the barrel, falling to a record low since 2007. Behind the traditional wine-producing countries of France, Italy, and Spain, Australia ranks sixth globally in wine production. The country boasts 65 wine regions, including South Australia’s Barossa Valley, Riverina in New South Wales, and Victoria’s Yarra Valley. For many years, Australian wine regions have been recognized among the best worldwide, and grape growing in vineyards plays a significant role in the country’s agriculture industry. Nonetheless, Australian wine has been dealt several blows in recent years, from tariffs imposed by a profitable export destination to weather conditions affecting growing.
Reclaiming the crown as China’s leading wine trade partner, further expansion into other lucrative markets, and responding to rising demand for alcohol-free alternatives could be the solution to emptying some of Australia’s wine bottles and replenishing the wine sector’s glass.
Pernod sells its wine brands to AWL
With two valuable Australian alcohol brands under its belt, Penfolds and Beringer, Treasury Wine Estates is Australia’s largest wine producer, selling almost 22 million nine-liter cases of wine worldwide in 2024. Casella Family Brands, famed for its Yellow Tail wines adorned with a kangaroo, and Australian Wine Holdco Limited (AWL), owner of Accolade Wines and the recent acquirer of Pernod Ricard’s Australian wine portfolio, also make their mark. Australians favor sipping on a glass of homegrown still wine, the country’s dominant off-trade wine sales segment, with just a fifth of wine consumed being imported.Is there trouble brewing in Australia’s vineyards?
In 2024, Australia recorded its second-lowest wine grape crush since 2014 due to less-than-optimal conditions continuing to hamper grape yields across several wine-growing regions. Despite logging its lowest harvest over the past decade, South Australia retained its position as the largest contributor to the national wine grape crush. Conversely, Shiraz lost its title as the country’s number one wine grape. Chardonnay hit the ground running in 2024; the white wine variety overtook Shiraz to become Australia’s leading wine-making grape variety.Will Australia’s wine exports stand still or sparkle?
Following China’s removal of tariffs on Australian bottled wine in March 2024, Australia’s wine exports have stabilized. As a historically key trade partner, China’s re-entry has provided some relief to Australia’s wine producers. The value of wine exported to mainland China skyrocketed from about 8.1 million Australian dollars in 2023 to over 400 million in 2024. The wine export volume followed suit, coming in over thirty times higher than in 2023. Despite the revival of trade, Australia’s wine exports are far from reaching the peak volume achieved in 2018.Can Australia navigate its oversupply?
Swimming in wine inventory surpluses, an estimated 2.2 billion liters worth in 2023, Australia has observed depressing shelf prices created by reduced exports and falling global wine consumption levels. While wine retains the largest consumer base across alcohol types in Australia, the population’s appetite for wine has lowered.Reclaiming the crown as China’s leading wine trade partner, further expansion into other lucrative markets, and responding to rising demand for alcohol-free alternatives could be the solution to emptying some of Australia’s wine bottles and replenishing the wine sector’s glass.
