The Australian wine industry is entering a challenging phase, as increasing production coincides with declining global wine consumption.
According to the Australian Wine Production, Sales and Inventory Report 2025, published by Wine Australia, domestic wine production exceeded sales during the 2024–25 season, resulting in a 5% rise in national stock levels.
Production Trends
Total wine production in Australia for 2025 reached 1.13 billion liters (approximately 126 million nine-liter cases). This represents a 9% increase compared to 2024, though it remains 7% below the ten-year average of 1.22 billion liters. Red wine production surged 15%, while white wine rose 2%, giving red wine a dominant share of 52% of total output.
Peter Bailey, Head of Market Analysis at Wine Australia, noted that the growth follows an 11% increase in the 2025 harvest, almost entirely from red grape varieties. He emphasized that, despite being below the historical average, this marks the second consecutive year of recovery after the low point in 2023.
Sales Overview
Despite higher production, total sales remained stable, at 1.08 billion liters (120 million cases). Exports accounted for 59% of total sales, up slightly from the previous year, driven by a 53-million-liter increase in exports to mainland China following the removal of tariffs. However, Bailey cautioned that exports remain well below the 2017–18 peak, reflecting lasting changes in the Chinese market and global conditions.
Domestic sales declined 3%, totaling 443 million liters — the second-lowest level since 2007–08 and 7% below the ten-year average. Bailey highlighted a long-term decline in domestic consumption since the 2016–17 peak, with a drop of approximately 57 million liters over recent years.
Rising Stocks and Stock-to-Sales Ratio
The combination of higher production and stable sales led to a production surplus of 52 million liters (6 million boxes), roughly equivalent to 75,000 tons of additional wine grapes. Consequently, the national stock-to-sales ratio (SSR) increased 4% to 1.9, surpassing the ten-year average of 1.66.
Particularly notable was the rise in SSR for still white wines, which climbed 19% to 1.59, reflecting lower sales after a period of strong international demand and high prices. Meanwhile, SSR for still red wines slightly declined to 2.12 but remains above historical averages.
Bailey stressed that accurate data on vineyard plantings and removals is essential for balancing supply and demand. The National Vineyard Register Project, managed by Wine Australia with federal funding, serves as a vital resource for reliable vineyard information.
Updated Tools for Industry Insight
To assist stakeholders, Wine Australia has updated its Grape Price Indicators Dashboard, integrating national and international data from sources like the OIV and the Ciatti Global Market Report. Data on domestic sales and inventory levels is also publicly accessible, providing transparency for producers and traders alike.
The full Australian Wine Production, Sales and Inventory Report 2025 is available online, offering detailed insights into production volumes, sales performance, and stock levels, crucial for navigating the current market challenges.
Source: Vinetur