Australia’s wine industry saw total sales surpass production for the second consecutive year, according to Wine Australia’s 2024 Australian Wine Production, Sales, and Inventory Report. The report reveals that while one billion liters of wine were produced in the 2023-24 financial year—an 8% increase from the previous period—this volume remains 16% below the 10-year average of 1.24 billion liters.
Notably, white wine production rose by 20%, now representing 51% of total output, marking the first time in 12 years that white wine has outpaced red wine production. This shift is partly attributed to a strategic reduction in red wine output following a surplus over the past three years. Red wine production fell by 2% during the same period.
Peter Bailey, Manager of Market Insights at Wine Australia, attributed the results to a combination of challenging seasonal conditions and deliberate industry adjustments. “Many regions faced difficult weather, including heavy rainfall, flooding, and potential frost damage,” Bailey said. “At the same time, grapegrowers and wineries adjusted production to meet current economic and market demands.”
Despite these challenges, both domestic and international sales remained stable. Australia exported 1.8 billion liters of wine, a slight 1% decrease from the previous year. Red wine exports saw a 4% increase, driven by the reopening of the Chinese market and the easing of tariffs. Exports to China surged from 1 million to 32 million liters, accounting for 5% of total exports.
However, Bailey warned that it would take time to assess how Chinese consumers will respond to the increased availability of Australian wine.
The report also highlighted a 14% drop in the stock-to-sale ratio (SSR) for small vintages, following a 10% reduction in inventory. White wine SSR dipped below the 10-year average, while red wine remained 15% above it. “While stock-to-sales ratios have improved, they reflect current production levels, which are still well below long-term trends,” Bailey noted.
Looking ahead, Bailey forecasts continued global wine consumption declines over the next five years, driven by economic pressures, shifting alcohol consumption habits, and increased competition from other beverages. He pointed out that global wine imports to China have fallen by two-thirds since 2017, making it unlikely that export levels to this market will return to previous highs. “The overall global market is under pressure, and we don’t expect to see a return to our previous export volume of 1.2 billion liters in the near future,” Bailey concluded.
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