Australia Wine Exports Fall in 2025 as Global Drinking Declines and China Demand Weakens

Australia’s wine exports recorded a notable decline in 2025, reflecting broader global trends of reduced alcohol consumption, oversupply, and weakening demand in key international markets. According to industry data released on Wednesday, the total value of Australian wine exports fell by 8% to A$2.34 billion (US$1.6 billion), highlighting the growing challenges facing one of the world’s leading wine exporters.

Australia remains the fifth-largest wine exporter globally, but like many major wine-producing regions, it is grappling with declining sales and excess supply. Changing consumer behavior is a major factor behind the downturn. Rising cost-of-living pressures and a global shift toward wellness-focused lifestyles are prompting consumers to cut back on alcohol, including wine. These trends are affecting both established and emerging markets for Australian wine.

Peter Bailey, head of market insights at Wine Australia, explained that consumers are increasingly reducing overall alcohol intake to save money and prioritize health. He also noted that wine exporters worldwide are facing additional hurdles from trade barriers and regional conflicts, which are increasing costs and making access to international markets more complex and less predictable.

China, Australia’s most valuable wine export destination, experienced the steepest decline. The value of wine exports to China dropped 17% in 2025 to A$755 million (US$530 million). This marks a sharp reversal from 2024, when Australian winemakers enjoyed a surge in sales following Beijing’s removal of punitive tariffs that had previously restricted trade. Despite the lifting of those tariffs, demand in China has weakened significantly.

Bailey emphasized that the Chinese wine market has contracted dramatically, now standing at just one-third of its size compared to five years ago. This rapid decline in consumption is having a substantial impact on exporters who had relied heavily on China for growth.

Lower shipments were also reported to other key markets, including Britain, further underscoring the global nature of the downturn. As oversupply persists and consumer preferences continue to evolve, Australian winemakers face ongoing pressure to adapt, diversify export markets, and respond to shifting global demand for wine in 2025 and beyond.