From a crushing 15% decline in national grape production to a resilient export market pouring premium wines into 95 countries, the Australian wine industry is navigating climate challenges and global headwinds with innovation and strategic focus.
Key Takeaways
- In the 2022/23 financial year, Australia crushed 1.18 million tonnes of winegrapes, representing a 15% decrease from the previous year due to adverse weather conditions in key regions like Riverland and Murray Darling
- South Australia's winegrape crush in 2023 totalled 520,000 tonnes, accounting for 44% of national production and led by Chardonnay at 23% of the state's crush
- New South Wales produced 204,000 tonnes of winegrapes in 2023, with Riverina region contributing 70% of the state's total through high-yield varietals like Shiraz and Chardonnay
- In 2022, Australian wine exports reached 693 million litres, valued at A$2.32 billion, down 7% in volume but up 4% in value from 2021
- China imported 160 million litres of Australian wine in 2022, representing 23% of total exports despite tariffs, valued at A$619 million
- The United States was Australia's second largest market in 2022 with 208 million litres exported, valued at A$604 million, up 2% in volume
- In 2022, domestic sales of Australian wine totalled 427 million litres, down 3% from 2021, with off-premise sales at 85%
- Per capita wine consumption in Australia was 18.5 litres in 2022, stable from previous year but below 20L peak in 2018
- Red wine accounted for 53% of domestic consumption in 2022 at 226 million litres, led by Shiraz at 35%
- The Australian wine industry contributed A$5.4 billion to GDP in 2022, supporting 163,000 full-time equivalent jobs across the supply chain
- Wine grape growing generated A$1.2 billion in value in 2022, with 5,800 businesses employing 28,000 people
- Winery gate sales totalled A$2.8 billion in 2022 from 2,400 wineries, with tourism adding A$500 million
- In 2023, 85% of Australian vineyards adopted sustainable practices certified under Sustainable Winegrowing Australia, covering 125,000 hectares
- Water usage in wine production averaged 1,200 litres per litre of wine in 2023, down 15% since 2015 through efficiency programs
- Carbon emissions from Australian wine scope 1 and 2 totalled 450,000 tonnes CO2e in 2023, with 20% reduction target met early
Despite adverse weather reducing Australia's 2023 winegrape crush, premium exports grew in value.
Consumption
1In 2022, domestic sales of Australian wine totalled 427 million litres, down 3% from 2021, with off-premise sales at 85%
Verified2Per capita wine consumption in Australia was 18.5 litres in 2022, stable from previous year but below 20L peak in 2018
Verified3Red wine accounted for 53% of domestic consumption in 2022 at 226 million litres, led by Shiraz at 35%
Verified4White wine consumption reached 162 million litres in 2022, 38% of total, with Sauvignon Blanc surging 5% year-on-year
Directional5Sparkling wine sales domestically were 62 million litres in 2022, up 2%, driven by Prosecco styles at 22% share
Single source6Average retail price for Australian table wine was A$12.50 per bottle in 2022, up 6% due to inflation
Verified765% of Australian adults consumed wine in 2022 per Roy Morgan survey, with millennials aged 25-39 at 72% participation
Verified8Off-trade channel dominated with 380 million litres sold in 2022, supermarkets holding 78% market share
Verified9On-premise wine sales recovered to 47 million litres in 2022 post-COVID, up 25% from 2021 lows
Directional10Premium domestic wines over A$20/bottle grew 4% in volume to 85 million litres in 2022
Single source11Bag-in-box wine sales declined 8% to 45 million litres in 2022, now 11% of total domestic market
Verified12Low/no alcohol wine consumption rose 15% to 2.5 million litres in 2022, per Nielsen data
Verified13Women represented 54% of wine drinkers in Australia in 2022, preferring white and sparkling varieties
Verified14Regional Australia consumed 120 million litres in 2022, 28% of national total despite lower population density
Directional15In 2022, 52% of domestic wine volume was red, with average consumption frequency of 2.1 glasses per week per drinker
Single source16Online wine sales grew 12% to 65 million litres equivalent in 2022, 17% of off-trade channel
Verified17Craft cider crossover consumption: 28% of wine drinkers tried in 2022, per Wine Australia survey
Verified18Gen Z (18-24) wine participation at 45% in 2022, preferring canned formats at 15% growth rate
Verified19Baby boomers consumed 25% of total wine volume in 2022 despite being 26% of population
Directional20Imported wine share of domestic market was 8% or 34 million litres in 2022, mainly sparkling from France
Single source21Direct-to-consumer sales via cellar doors hit A$650 million in 2022, up 10% post-reopening
Verified22E-commerce platforms like Vinomofo sold 12 million bottles equivalent in 2022, 22% growth
Verified23Still white wine declined 2% to 140 million litres domestically in 2022 amid sparkling shift
Verified24Fortified wine consumption was 8 million litres in 2022, 2% of market, stable in niche segments
Directional25Hospitality sector poured 55% reds in 2022 recovery, per GfK data on 1,200 venues
Single sourceConsumption Interpretation
Despite some Australians trading the box for the bottle and eyeing the zero-proof aisle, our national affair with wine remains steadfastly romantic, even if we're now sipping more premium reds at home, toasting cautiously with Prosecco, and letting Gen Z figure out if it belongs in a can.
Economics
1The Australian wine industry contributed A$5.4 billion to GDP in 2022, supporting 163,000 full-time equivalent jobs across the supply chain
Verified2Wine grape growing generated A$1.2 billion in value in 2022, with 5,800 businesses employing 28,000 people
Verified3Winery gate sales totalled A$2.8 billion in 2022 from 2,400 wineries, with tourism adding A$500 million
Verified4Export-related economic impact was A$3.1 billion in 2022, including A$1.4 billion in winery FOB value
Directional5Domestic wholesale value of wine was A$4.2 billion in 2022, supporting 45,000 retail and hospitality jobs
Single source6Total industry investment in R&D reached A$120 million in 2022, with Wine Australia funding 40% or A$48 million
Verified7Regional economic multiplier effect from wine was 2.8x in South Australia, generating A$2.1 billion locally in 2022
Verified8Wine tourism attracted 4.5 million visitors in 2022, spending A$1.1 billion on accommodations and experiences
Verified9Average wage in wine grape growing was A$65,000 annually in 2022, above national agriculture average by 12%
Directional10Tax revenue from wine industry totalled A$2.3 billion in 2022, including GST and excise on domestic sales
Single source111,950 wineries operated in 2022, up 2% from 2021, with 70% producing under 100,000 cases annually
Verified12Small wineries under 20,000 cases contributed A$450 million to economy in 2022 via niche markets
Verified1396% of Australian wine production is exported or sold domestically without import competition in 2022
Verified14Wine industry direct employment was 35,000 in vineyards and wineries in 2022, plus 50,000 indirect
Directional15South Australia wine GDP contribution A$2.8 billion in 2022, 4% of state economy
Single source16NSW wine sector added A$1.1 billion to GDP in 2022 via Riverina hub
Verified17Victoria's Yarra and Mornington contributed A$850 million in 2022, tourism 30% of value
Verified18Export freight costs rose 25% to A$250 million in 2022 due to container shortages
Verified19R&D levy funded A$35 million in grower projects in 2022, matching industry contributions
Directional202,100 vineyard businesses operated in 2022, average size 70 ha, revenue A$650k each
Single source21Women held 42% of wine industry roles in 2022, up from 35% in 2015 per census
Verified22Industry exported to 95 countries in 2022, top 10 markets taking 85% volume
Verified23Cellar door revenue per visitor averaged A$45 in 2022, with 4.2 million visits total
Verified2455% of wineries exported in 2022, average 2.5 markets per exporter
Directional25Energy costs for wineries rose 18% to A$120 million total in 2022 amid energy crisis
Single sourceEconomics Interpretation
Australia’s wine industry is not just a delightful indulgence but a formidable economic engine, seamlessly blending the craft of 5,800 growers, the enterprise of 2,400 wineries, and the thirst of international markets to pour over $5.4 billion into the national GDP while supporting 163,000 livelihoods.
Exports
1In 2022, Australian wine exports reached 693 million litres, valued at A$2.32 billion, down 7% in volume but up 4% in value from 2021
Verified2China imported 160 million litres of Australian wine in 2022, representing 23% of total exports despite tariffs, valued at A$619 million
Verified3The United States was Australia's second largest market in 2022 with 208 million litres exported, valued at A$604 million, up 2% in volume
Verified4United Kingdom exports totalled 92 million litres in 2022 at A$285 million, with premium wines over A$10/L growing 15%
Directional5Canada received 56 million litres of Australian wine in 2022, valued at A$234 million, driven by Shiraz and Chardonnay
Single source6Premium Australian wine exports (over A$10 per litre) reached A$1.05 billion in 2022, 45% of total export value from 25% of volume
Verified7Bulk wine exports comprised 49% of total volume in 2022 at 339 million litres, primarily to China and the US
Verified8Bottled wine exports were 354 million litres in 2022, valued at A$1.77 billion, with growth in value per litre to A$5.00
Verified9In 2023, wine exports fell to 612 million litres valued at A$2.18 billion, a 12% volume drop amid global slowdowns
Directional10Southeast Asia exports grew 8% in value to A$150 million in 2022, led by Singapore and Hong Kong markets
Single source11Australian wine export value per litre averaged A$3.35 in 2022, up from A$3.15 in 2021 due to premium shift
Verified12Exports to Japan totalled 22 million litres in 2022 at A$110 million, with sparkling wines up 12%
Verified13India imported 5.5 million litres in 2022, valued at A$25 million, growing 20% on premium Chardonnay
Verified14In 2022, Shiraz exports to the US grew 5% to 65 million litres, valued at A$180 million FOB
Directional15Chardonnay exports to China were 45 million litres in 2022 despite challenges, 28% of total Chardonnay exports
Single source16Sparkling exports totalled 85 million litres in 2022, 12% of total volume, led by UK and US markets
Verified17Sauvignon Blanc export volume reached 35 million litres in 2022, up 10%, primarily to UK at A$85 million value
Verified18Prosecco-style exports surged 18% to 22 million litres in 2022, valued at A$90 million across Europe
Verified19Container exports increased 15% in volume to 120 million litres in 2022 amid freight challenges
Directional20Wine exports to Netherlands totalled 18 million litres in 2022 at A$65 million, growing on premium reds
Single source21Germany's market took 15 million litres valued at A$55 million in 2022, stable with focus on Riesling blends
Verified22Bulk exports to Italy were 25 million litres in 2022 for blending, valued at A$40 million
Verified23Emerging market exports to Brazil grew 25% to 4 million litres in 2022 at A$15 million
Verified24Rosé wine exports doubled to 12 million litres in 2022, capturing 5% of total sparkling segment
DirectionalExports Interpretation
Australian wine exports are squeezing themselves into a higher-class suitcase, sending less wine overall for more money, proving that sometimes you have to shrink to grow—especially when China, despite tariffs, still drinks nearly a quarter of it by volume.
Production
1In the 2022/23 financial year, Australia crushed 1.18 million tonnes of winegrapes, representing a 15% decrease from the previous year due to adverse weather conditions in key regions like Riverland and Murray Darling
Verified2South Australia's winegrape crush in 2023 totalled 520,000 tonnes, accounting for 44% of national production and led by Chardonnay at 23% of the state's crush
Verified3New South Wales produced 204,000 tonnes of winegrapes in 2023, with Riverina region contributing 70% of the state's total through high-yield varietals like Shiraz and Chardonnay
Verified4Victoria's winegrape production reached 178,000 tonnes in 2023, down 20% year-on-year, primarily impacting Pinot Noir yields in Yarra Valley by 25% due to frost events
Directional5Western Australia's crush volume was 23,000 tonnes in 2023, with premium Cabernet Sauvignon from Margaret River making up 35% of the total
Single source6Queensland's tropical winegrapes yielded 1,500 tonnes in 2023, focusing on hybrid varieties suited to humid conditions
Verified7Tasmania produced 4,200 tonnes of cool-climate winegrapes in 2023, with Pinot Noir comprising 48% and Chardonnay 32% of the crush
Verified8Shiraz accounted for 22% of Australia's total winegrape crush in 2023 at 259,600 tonnes, predominantly from South Australia and New South Wales
Verified9Chardonnay crush nationwide was 210,400 tonnes in 2023, representing 18% of total production but down 18% from 2022 due to lower yields in Riverland
Directional10Cabernet Sauvignon production totalled 152,800 tonnes in 2023, or 13% of national crush, with Margaret River contributing 25% of premium quality fruit
Single source11Australia's wine production volume for 2023 was 1.03 billion litres, a 13% decline from 2022, influenced by reduced intake at wineries
Verified12The average winegrape yield in 2023 was 8.5 tonnes per hectare nationally, down from 9.6 t/ha in 2022, with Barossa Valley averaging 7.2 t/ha for Shiraz
Verified13Riverland region crushed 460,000 tonnes in 2023, 39% of national total, dominated by high-volume Chardonnay and Shiraz for bulk wine
Verified14Murray Darling's 2023 crush was 250,000 tonnes, focusing on red varietals with Shiraz at 45% of regional production
Directional15McLaren Vale produced 45,000 tonnes in 2023, with Grenache rising to 12% of crush as premium plantings mature
Single source16Yarra Valley's Pinot Noir yield dropped to 5.8 t/ha in 2023 from 7.2 t/ha, impacting sparkling base wine production
Verified17Australia's total winegrape plantings stood at 146,000 hectares in 2023, with red varieties occupying 60% or 87,600 ha
Verified18Bearings of winegrapes for 2024 vintage estimated at 1.31 million tonnes, up 11% from 2023, per Wine Australia survey of 1,200 growers
Verified19Premium winegrape prices averaged $2,850 per tonne in 2023, up 5% for Shiraz in Barossa Valley regions
Directional20Commercial table grapes diverted to wine crush in 2023 totalled 15,000 tonnes in Riverina due to oversupply
Single sourceProduction Interpretation
Despite a crushing 15% downturn from unpredictable weather, Australian winemakers are proving they can still wring quality from quantity, with Shiraz leading the charge, South Australia holding the fort, and premium regions like Margaret River showcasing that even in a tough vintage, the future tastes like Cabernet.
Sustainability
1In 2023, 85% of Australian vineyards adopted sustainable practices certified under Sustainable Winegrowing Australia, covering 125,000 hectares
Verified2Water usage in wine production averaged 1,200 litres per litre of wine in 2023, down 15% since 2015 through efficiency programs
Verified3Carbon emissions from Australian wine scope 1 and 2 totalled 450,000 tonnes CO2e in 2023, with 20% reduction target met early
Verified465% of wineries implemented biodiversity measures like cover cropping on 40% of vineyard area in 2023
Directional5Solar power generated 25% of winery energy needs in 2023, with 450 facilities installing panels covering 50 MW capacity
Single source6Pesticide use reduced by 30% per hectare since 2010, with integrated pest management on 92% of certified vineyards in 2023
Verified740% of wine labels carried sustainability certification in 2023, up from 25% in 2020, boosting premium sales by 10%
Verified8Regenerative agriculture trials on 5,000 ha in 2023 improved soil organic carbon by 0.5% annually
Verified9Waste diversion rate at wineries reached 85% in 2023, recycling 95% of grape marc into biogas and fertilizer
Directional10Drought-resistant rootstocks planted on 15% of new vineyards since 2020, enhancing resilience in 2023 vintage
Single source1175% of growers monitored canopy microclimates using AI sensors in 2023 trials across 20,000 ha
Verified12Australia's 2023 vintage saw 12% of production certified organic or biodynamic, totalling 140,000 tonnes of grapes
Verified1372% of production used drought-tolerant clones in 2023, reducing irrigation by 20%
Verified14Biodiversity audits on 60% of vineyards showed 25% native vegetation cover increase since 2018
Directional1535% of industry carbon footprint offset via credits in 2023, totalling 150,000 tCO2e
Single source16Precision irrigation saved 25 gigalitres of water across 80,000 ha in 2023 season
Verified1790% compliance with chemical residue limits in 2023 exports, zero major recalls
Verified18500 wineries achieved ISO 14001 environmental certification by 2023
Verified19Soil health programs restored 10,000 ha with compost from winery waste in 2023
Directional20Electric tractor adoption reached 5% of fleet in 2023, cutting emissions 12% on 200 vineyards
Single source21Packaging recyclability at 98% for glass bottles, with lightweighting reducing weight 15% since 2015
Verified22Climate modelling predicts 20% yield drop by 2050 without adaptation, prompting 30% replanting programs
VerifiedSustainability Interpretation
The Australian wine industry has essentially become a high-functioning environmental overachiever, diligently transforming its vast vineyards into a complex, data-driven ecosystem where saving water, cutting carbon, and boosting biodiversity is now just how business—and surprisingly good business at that—gets done.