Australian wine exports fall 8% as global headwinds bite

Exports to mainland China and the US weighed on overall performance in 2025, though pockets of growth emerged in Canada and parts of Asia.

Australian wine exports declined in 2025, underscoring the pressure facing the global wine trade as consumption softens and economic uncertainty persists.

According to Wine Australia’s Export Report released today, export value fell by 8% year on year to $2.34 billion, while volume declined by 6% to 613 million litres. The average export value also slipped, down 3% to $3.81 per litre Free on Board (FOB).

China and US drag on results

The overall decline was largely driven by reduced export value to mainland China and the United States, alongside lower shipment volumes to the United Kingdom. Despite this, several markets delivered value growth, including Canada, Singapore, Thailand and Malaysia, pointing to ongoing opportunities for diversification.

Peter Bailey, Wine Australia’s Manager of Market Insights, said the weaker performance reflects broader structural trends affecting wine globally.

“The overall weakened export performance is consistent with the long-term trend of declining wine consumption in major markets around the world,” Bailey said. “Consumers are reducing overall alcohol consumption in line with wellness trends and in order to save money as the cost-of-living increases. For wine exporters around the world, trade barriers and regional conflicts are also making it more difficult and costly to get product into markets.”

Mainland China had the single biggest impact on export value. Shipments to the market fell by 17% year on year to $755 million, following an initial restocking surge after import tariffs on Australian wine were removed.

“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,” Bailey said.

He added that although shipment levels were strong in the first three quarters after tariffs were lifted, consumer demand has since softened. Chinese consumer confidence has only marginally recovered since hitting an all-time low in 2022 during the Covid-19 pandemic, which has continued to weigh on spending.

Red wine drove the decline in shipments to mainland China over the past 12 months. By contrast, white wine exports rose sharply, with volumes up 77% year on year. White wine’s share of export volume to China increased to 15%, from 7% the previous year. Chardonnay, Sauvignon Blanc and Riesling were the three leading white varieties, all recording growth.

Mixed picture in UK and US

More than half of Australian wine export volume continues to go to the UK and the US, markets that are facing significant headwinds. Changing consumer habits, fewer wine-led occasions and rising living costs have all taken their toll.

Recent Circana and SipSource data shows UK off-premise wine sales declined by 4% over the past 12 months, while US wine depletions fell by 8%. The latter marked the fifth consecutive year of decline and the first time in two decades that total US wine sales dropped below 300 million cases, according to Impact Databank.

Export value to the UK fell by 3%, while shipments to the US declined by 12% in value. However, US shipment volumes increased due to growth in unpackaged wine exported for bottling in market.

In the UK, premium wines performed more positively. Exports valued above $7.50 per litre rose by 15%, with growth spread across key varieties including Shiraz, Cabernet Sauvignon, Chardonnay, Grenache and Sauvignon Blanc.

Canada and Asia offer growth

Canada was one of the strongest-performing markets, with export value up 12% to $175 million. Growth was recorded across the full price spectrum of packaged wines, as Canadian consumers looked to replace American wines following their removal from liquor board shelves.

Across Asia, excluding mainland China, export value edged up 1% to $494 million. Singapore stood out, with exports rising 18% in value to $118 million, overtaking Hong Kong for the first time since the year to September 2020.

Value growth was also recorded in Thailand, Malaysia, Indonesia and Taiwan, while Japan and South Korea posted more modest increases.

Key markets by value and volume

By value, the top five export markets for Australian wine in 2025 were mainland China ($755 million, down 17%), the United Kingdom ($343 million, down 3%), the United States ($287 million, down 12%), Canada ($175 million, up 12%) and Singapore ($118 million, up 18%).

By volume, the leading destinations were the United Kingdom (194 million litres, down 9%), the United States (118 million litres, up 11%), mainland China (69 million litres, down 18%), Canada (64 million litres, down 2%) and New Zealand (24 million litres, down 13%).

Wine Australia said the results highlight both the scale of the challenges facing exporters and the importance of continued market diversification as global consumption patterns evolve.

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