While Australia's 2022 winegrape crush was a tight 1.09 million tonnes—down 13% due to drought—the story within these numbers reveals a dynamic industry defined by regional resilience, a push toward premiumization, and strategic global market navigation.
Key Takeaways
- In 2022, Australian winegrape crush totalled 1.09 million tonnes, a 13% decrease from 2021 due to dry conditions in South Australia and New South Wales
- South Australia's winegrape production in 2022 was 564,000 tonnes, representing 52% of national crush and down 18% from prior year
- New South Wales produced 181,000 tonnes of winegrapes in 2022 vintage, a 2% increase driven by Riverina region's recovery
- In 2022-23 financial year, Australian wine exports reached 678 million litres, down 7% from prior year but value up 6% to $2.4 billion
- China imported 121 million litres of Australian wine in 2022-23, 18% of total volume despite tariffs, value $580 million
- US market took 236 million litres in 2022-23, 35% of exports, value $800 million with premium growth
- Domestic wine consumption in Australia 2022-23 was 462 million litres, down 2% from prior year, per capita 17.3 litres
- Table wine sales 2022 calendar year 430 million litres, 93% of total domestic
- Premium domestic sales (>AUD$25/bottle) grew 5% to $3.2 billion value in 2022-23
- Australian wine industry generated $5.4 billion in export revenue over 5 years to 2022
- Wine sector contributed $45 billion to GDP in 2021-22 including tourism
- 170,000 direct and indirect jobs supported by wine industry in 2022
- Shiraz represents 21% of total national winegrape plantings with 30,000 hectares in 2022
- Chardonnay planted on 23,500 hectares, 16% national total, declining 2% since 2018
- Cabernet Sauvignon 11,500 ha, 8% share, stable plantings mainly Coonawarra/Margaret River
Dry conditions hurt overall yields, but premium regions saw growth and exports gained value.
Consumption
- Domestic wine consumption in Australia 2022-23 was 462 million litres, down 2% from prior year, per capita 17.3 litres
- Table wine sales 2022 calendar year 430 million litres, 93% of total domestic
- Premium domestic sales (>AUD$25/bottle) grew 5% to $3.2 billion value in 2022-23
- Off-premise sales 75% of domestic volume in 2022, supermarkets dominant
- On-premise consumption recovered to 22% share post-COVID in 2023
- Chardonnay domestic sales 2022 120 million litres, 28% market share
- Shiraz 115 million litres domestic, 27% share, strong in reds
- Sauvignon Blanc up 10% to 65 million litres in 2022 domestic
- Sparkling wine consumption 85 million litres, 18% total, Prosecco style leading
- Rosé sales doubled since 2015 to 25 million litres in 2022
- Low/no alcohol wine sales 1.5 million litres, up 50% in 2022-23
- NSW domestic market 35% national share, 160 million litres
- Victoria 25% share, 115 million litres consumed 2022-23
- Queensland growth 4% to 90 million litres, tourism driven
- Average retail price domestic $12.50/bottle in 2023, up 6%
- E-commerce wine sales 15% of domestic in 2023, up from 10%
- Millennial consumption 25% of total volume, prefer premium
- Female consumers 52% of wine drinkers, Sauvignon Blanc favourite
- 2021-22 domestic clearance 470 million litres, stable
- Fortified wine consumption down to 5 million litres, 1% share
- Bag-in-box 20% volume domestic, value down 3%
- Bottled wine 70% domestic sales volume 2023
- Direct-to-consumer sales $450 million, up 12% in 2022-23
- Cellar door sales 15 million cases annually pre-COVID, recovering
- Wine tourism visitors 4.5 million in 2022-23, spend $1.2 billion
- Per capita consumption fell to 17.2L in 2022 from 17.8L
- Cabernet Sauvignon domestic 60 million litres, 14% share
- Pinot Noir 35 million litres up 8%
Consumption Interpretation
While overall volume is down as Aussies drink a little less but better, the domestic wine scene is a tale of two economies: supermarkets are awash with affordably-priced tipples, yet premium bottles and direct sales are thriving as savvy consumers, led by Chardonnay-sipping millennials and Sauvignon Blanc-loving women, increasingly trade up for quality and experience.
Economics
- Australian wine industry generated $5.4 billion in export revenue over 5 years to 2022
- Wine sector contributed $45 billion to GDP in 2021-22 including tourism
- 170,000 direct and indirect jobs supported by wine industry in 2022
- Grape growing employed 25,000 full-time equivalents in 2022 vintage
- Winemaking jobs 15,000 FTE, wages averaged $85,000 annually
- Tourism from wine 42,000 jobs, $2.8 billion revenue 2022-23
- Total industry value-added $16 billion in 2022, multiplier effect 2.8
- Regional South Australia wine GDP contribution $8.5 billion, 10% state economy
- Export earnings per litre $3.54 average 2022-23
- Domestic market wholesale value $6.7 billion in 2022-23
- Wine Australia R&D investment $50 million annually, ROI 7:1
- Vineyard investment $1.2 billion over 5 years to 2022
- Tax revenue from wine $3.5 billion federal/state in 2022
- Average winery turnover $5 million, 2,000+ wineries operating
- Small wineries (<50,000 cases) 70% of total, contribute 25% value
- Large producers (>1M cases) 5% but 60% exports
- Sustainability investment $200 million industry-wide 2018-2023
- Water efficiency saved $150 million costs 2022
- Export tariffs cost industry $1 billion since 2020
- Recovery projected $3 billion exports 2024
- Grape grower income average $250,000 farm 2022, up 5%
- Winery profit margins averaged 12% in 2022-23
- Industry paid $2.1 billion wages 2022
- Barossa region economic output $2.5 billion annually
- Hunter Valley $1.8 billion contribution
- Yarra Valley tourism $500 million yearly
Economics Interpretation
The Australian wine industry is not just about fine bottles and picturesque vineyards; it's a remarkably efficient economic engine, pouring $45 billion into the nation's GDP, supporting a small city's worth of jobs, and proving that every $3.54 export earns far more than its weight in national prosperity.
Exports
- In 2022-23 financial year, Australian wine exports reached 678 million litres, down 7% from prior year but value up 6% to $2.4 billion
- China imported 121 million litres of Australian wine in 2022-23, 18% of total volume despite tariffs, value $580 million
- US market took 236 million litres in 2022-23, 35% of exports, value $800 million with premium growth
- UK exports 2022-23 were 92 million litres, up 15% post-Brexit, value $250 million
- Canada imported 45 million litres in 2022-23, steady 7% share, value $170 million
- Japan took 22 million litres, 3% of volume, value $110 million premium focus
- Premium bottled exports (>AUD$10/L) 2022-23 value $1.9 billion, 79% of total value
- Bulk wine exports 2022-23 232 million litres, 34% volume but 10% value
- Shiraz exports 2022-23 110 million litres, 16% of total, dominant in US/UK
- Chardonnay exports 105 million litres, 15% share, strong in Asia
- Value per litre exported averaged AUD$3.60 in 2022-23, up from $3.40
- Southeast Asia exports grew 12% to 25 million litres in 2022-23
- EU exports 2022-23 68 million litres, value $220 million despite competition
- India market exports up 25% to 4.5 million litres in 2022-23
- South Korea 12 million litres, 2% share, value growth 18%
- Bag-in-box exports 35 million litres, 5% volume mainly to UK
- Sparkling wine exports 42 million litres, 6% volume, value $180 million
- Fortified exports declined to 2 million litres in 2022-23
- Average export price for Shiraz $4.20/L in 2022-23
- US Shiraz imports from Australia 45 million litres, up 10%
- China premium exports value $450 million despite volume drop
- UK value per litre $2.90, up 20% with premium shift
- Canada growth 8% volume to 45 million litres
- Japan luxury segment exports $80 million
- Total export value 2021-22 $2.26 billion, volume 729 million litres
- 2020-21 exports peaked at 832 million litres pre-tariffs, value $2.9 billion
- Singapore hub exports rerouted 15 million litres in 2022-23
- Netherlands as EU gateway 20 million litres
- Brazil emerging market 2.5 million litres up 30%
Exports Interpretation
Amidst a global thirst for cheaper plonk, Australia has cunningly pivoted to slake the world's palate with less but better wine, proving it's far smarter to ship a few precious drops of Shiraz to a discerning Yank or a tariff-defying Chinese connoisseur than to drown the Brits in a Brexit-flavoured box wine sea.
Production
- In 2022, Australian winegrape crush totalled 1.09 million tonnes, a 13% decrease from 2021 due to dry conditions in South Australia and New South Wales
- South Australia's winegrape production in 2022 was 564,000 tonnes, representing 52% of national crush and down 18% from prior year
- New South Wales produced 181,000 tonnes of winegrapes in 2022 vintage, a 2% increase driven by Riverina region's recovery
- Victoria's 2022 winegrape crush reached 226,000 tonnes, up 11% from 2021 with strong yields in Heathcote and Yarra Valley
- Western Australia crushed 58,000 tonnes in 2022, a record high up 25% boosted by Margaret River premium varieties
- Tasmania's 2022 crush was 4,200 tonnes, up 8% with Pinot Noir comprising 45% of total
- In 2021-22, total Australian wine production was 1.13 billion litres, down 9% from previous year
- Red winegrape crush in 2022 was 487,000 tonnes nationally, 45% of total, Shiraz at 41% of reds
- White winegrape varieties crushed 603,000 tonnes in 2022, Chardonnay leading at 34% share
- Average winegrape yield in 2022 was 7.8 tonnes per hectare, down from 8.9 t/ha in 2021 due to water restrictions
- Barossa Valley Shiraz yields averaged 5.2 t/ha in 2022 vintage, producing high-quality concentrated fruit
- McLaren Vale's 2022 crush totalled 45,000 tonnes, with Grenache up 15% in plantings
- Riverina region's 2022 crush was 140,000 tonnes, 77% white varieties for bulk wine
- Yarra Valley Chardonnay production in 2022 averaged 12 t/ha yield, optimal for premium sparkling base
- Margaret River Cabernet Sauvignon crushed 12,000 tonnes in 2022, quality rated exceptional
- National bearing vineyards area in 2022 was 146,000 hectares, down 1% from 2021
- In 2023 vintage early estimates, crush projected at 1.3 million tonnes, up 19% recovery
- Coonawarra Cabernet yields 2022 averaged 4.8 t/ha, producing 8,500 tonnes total
- Hunter Valley Semillon crush 2022 was 15,000 tonnes, yields stable at 10 t/ha
- Adelaide Hills Pinot Noir 2022 production up 20% to 5,200 tonnes
- Rutherglen Muscat crush steady at 2,500 tonnes in 2022 for fortified wines
- Pemberton Sauvignon Blanc 2022 yields 11 t/ha, total 3,000 tonnes
- Total 2020 crush record 1.75 million tonnes, highest since 2018
- 2019 crush 1.42 million tonnes, reds up 5%, whites down 2%
- Queensland winegrape crush 2022 minimal at 500 tonnes
- Organic winegrape area grew to 5,000 ha by 2022, 3.4% of total
- Irrigation water use per tonne of grapes averaged 1,200 litres in 2022, down 10%
- Mechanical harvesting used on 65% of crush in 2022, up from 60% in 2021
- Premium winegrape prices averaged $2,500/tonne in 2022, up 8%
- Bulk winegrape prices fell to $800/tonne average in 2022 due to oversupply
Production Interpretation
Despite drought driving a 13% national decline to 1.09 million tonnes, Australia's 2022 vintage was a tale of two markets: premium regions like Margaret River and the Yarra Valley thrived with record quality, while bulk-producing areas faced a sobering oversupply and falling prices.
Varieties and Regions
- Shiraz represents 21% of total national winegrape plantings with 30,000 hectares in 2022
- Chardonnay planted on 23,500 hectares, 16% national total, declining 2% since 2018
- Cabernet Sauvignon 11,500 ha, 8% share, stable plantings mainly Coonawarra/Margaret River
- Sauvignon Blanc expanded to 15,000 ha, 10% total, Riverina/Adelaide Hills key
- Pinot Noir 6,800 ha, 5%, growth in Tasmania/Victoria
- Barossa Valley total vineyard area 13,000 ha, 80% Shiraz/Grenache
- Hunter Valley 6,500 ha Semillon dominant 40%, Semillon 2,500 ha
- Margaret River 5,200 ha, 45% Chardonnay/Cabernet blend focus
- Yarra Valley 3,000 ha, 35% Pinot Noir/Chardonnay for sparkling
- McLaren Vale 8,000 ha, Grenache 20%, Shiraz 50%
- Coonawarra 2,500 ha, 70% Cabernet Sauvignon reds
- Adelaide Hills 2,800 ha, Sauvignon Blanc 30%, Pinot Noir 25%
- Riverina 12,000 ha, 85% whites Chardonnay/Semillon bulk
- Rutherglen 1,800 ha, Muscat/Durif fortified 60%
- Heathcote 1,500 ha, Shiraz 90% iconic reds
- Pyrenees Victoria 1,200 ha, Riesling/Shiraz mix
- Tasmanian cool climate 2,500 ha total, Pinot Noir 45%
- Prosecco/ sparkling varieties planted 1,200 ha up 50% since 2015
- Italian varieties total 8% plantings, Sangiovese/Nebbiolo emerging
- Semillon 9,000 ha, 6% national, Hunter/Riverina stronghold
- Merlot declining to 4,500 ha, 3% share
- Riesling stable 4,000 ha, Clare Valley/Eden Valley key
- Grenache 2,200 ha revival, McLaren Vale/Barossa
- Clairette Blanche alternative whites 500 ha growing
- Orange NSW 1,000 ha cool climate Chardonnay/Pinot
- Great Southern WA 2,000 ha Riesling/Cabernet
- Canberra District 1,500 ha Shiraz/Riesling
Varieties and Regions Interpretation
Australia's wine scene is a tale of a Shiraz-drenched giant still confidently wearing its crown, a Chardonnay and Cabernet court holding steady, a Sauvignon Blanc upstart elbowing for space, and a chorus of regional specialists—from Barossa's brawn to Tasmania's finesse and Rutherglen's sticky treasures—all arguing, with a glass in hand, over what 'terroir' truly means.