- Shipments in 12 months of 2025 decline in value terms by 8% to AUD2.34bn (US$1.62bn)
- Volumes also fall, by 6% to 613m litres
- Both figures in stark contrast to 2024’s +34% in value, +7% in volumes
A return to normal shipment levels to China last year has driven wine exports from Australia downwards, according to figures released this week.
In its latest annual export report, trade association Wine Australia said yesterday that 12-month exports in 2025 registered a slide of 8% on the year prior in value terms. The performance was similar volumes-wise, dipping by 6%.
While admitting that 2025 had displayed a consistency with “the long-term trend of declining wine consumption in major markets around the world”, the organisation also noted a high comparable from top market China in 2024, when a 220% tariff rate on wine from Australia was removed. Indeed, although shipment values to the country remained more than double those to the second-placed US, China still fell 17% on an 18% slide in volumes.
“The Chinese wine market is one third of the size it was five years ago – impacting both domestically produced and imported wines,” said Wine Australia in the report. “While shipment levels in the first three quarters after tariffs were removed were exceptionally positive, consumer demand [in China] has been subdued.”
Elsewhere in the top five, the UK and US, which, when combined, account for “more than” 50% of total shipment volumes, both slipped in value terms. The former was down 3% on -9% volumes, while the US dropped by 12% although its volumes actually rose, by 11%. Wine Australia linked the contradictory movements to growth for bulk-wine exports in the second half of 2025.
Irrespective, the organisation painted a concerning picture for the wider wine category in the country. “The US market is significantly impacted by economic uncertainty, making consumers cautious in their spending – exacerbating already existing hurdles for wine that include a loss in appeal with younger drinkers and older consumers (traditionally the market’s core wine drinkers) reducing their consumption,” it said.
“[Market-insights firm] SipSource reported that total wine depletions fell by 8% over the 12 months to October 2025. This marked the fifth year of declines in the US wine market and the first time in two decades that wine sales fell below 300m cases, according to Impact Databank.”
“Consumers are reducing their alcohol consumption in-line with wellness trends and to save money during increases to the costs-of-living,” Wine Australia said. “Trade barriers and regional conflicts are also making it more difficult and expensive to get product into market.
“Many wine exporting countries are suffering similar circumstances – a recent analysis on French exports reported that shipments decreased by 2% in volume in the first nine months of 2025 – driven primarily by the US and mainland China markets. Even France’s own tradition of wine drinking is changing – in 1980, 50% of French consumers drank wine daily – that share is now only 10%.”
Market development GM Paul Turale added: “Our objective remains steadfast – to work with all sector stakeholders to keep turning up and find innovative ways to demonstrate the quality, diversity and value of Australian wine at all price points.
“We continue to invest in markets of opportunity, acknowledging that this investment will likely take time to deliver the sustainable, commercial outcomes we’re striving for.”
Earlier this week, figures out of South Africa showed the country’s wine exports in 2025 posted a dip of almost 5% in value terms on a volumes slide of nearly 14%.
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