Australian wine harvest falls to 25-year low
Australia’s 2026 wine harvest has dropped to its lowest level in a quarter of a century as weak global demand and extreme weather continue to weigh on the industry. Despite a significantly smaller crop, grape prices have continued to decline, underlining the scale of the challenges facing producers.
Australia’s harvest is the lowest for 25 years, according to Wine Australia.
Shrinking global demand and extreme weather reduced output so this year’s total crush is estimated at 1.27 million tonnes, down 19% on 2025 and about 25% below the industry’s 10-year average.
The value of the vintage has dropped even more sharply, falling 26% to A$837 million (£433 million).
“There have now been four vintages in a row below the long-term average, suggesting an underlying reset in the tonnage of grapes required by winemakers to meet changing global demand,” Peter Bailey, manager for market insights at Wine Australia, said.
Red wines bear the brunt
Red varieties accounted for 80% of the decrease, Wine Australia said, with white grapes falling by only 9%.
White varieties made up the majority of Australia’s crush for only the second time in the past 12 years, reflecting changing consumer tastes, according to the industry body.
Partner Content
The predicament the Australian industry continues to face is highlighted by the fact that despite the small harvest, grape prices continued to fall, despite widespread grubbing up and vineyard closures.
They were 6% lower on average than for the 2025 harvest.
Bailey’s colleague, Sandy Hathaway, said the small harvest will mean about 33 million fewer nine-litre cases will be produced this year, reflecting shrinking global consumer demand and Australia’s continuing red wine glut.
“It’s concerning that there is no sign of recovery for reds despite such a significant adjustment, and that prices for whites are also now declining,” Bailey added.
Weather adds to industry pressures
Poor weather compounded the industry’s challenges. Wine Australia said respondents to its National Vintage Survey reported late frosts, heatwaves and flooding across several regions, all contributing to lower production as returns declined.
Hathaway said many grape producers wanted to see a smaller crush.
“We know global consumption is declining. So although it is a small crush and that does mean a lot less income into the regions, which is not a good thing, it is a necessary adjustment,” she said.
Related news
‘We make a wine for that’: Australia to relaunch national campaign
