Wine industries in Australia and New Zealand face global demand slump

The wine industries in Australia and New Zealand are facing significant challenges due to a global downturn in alcohol consumption. According to data from IWSR, global alcohol consumption has declined for three consecutive years as of 2025, driven by health-conscious consumer trends and economic pressures.

Wine Australia reported that its exports fell to a 22-year low, dropping below 600 million litres for the first time since 2004. Export earnings for the year ending in June decreased by 7 percent to $2.7 billion AUD. In New Zealand, while export volumes rose to over 306 million litres, total value remained relatively stagnant at approximately $2.1 billion NZD, with the average price per litre decreasing.

To address the resulting oversupply—estimated at 262 million litres in Australia—researchers at Adelaide University are studying the potential of the no- and low-alcohol (NOLO) market. The NOLO category is projected to add over US$4 billion in global market value by 2028. Research efforts are focusing on bioengineering and sensory science to repurpose surplus wine into high-quality low-alcohol products that appeal to younger generations, such as Millennials and Gen Z.