# Australian alcohol industry economic challenges > Developing situation record from CLSTR: https://clstr.news/situations/australian-alcohol-industry-economic-challenges > Updated: 2026-11-05T21:12:28.000Z. Sources: 14. Developments: 2. The Australian alcohol industry is facing a period of significant instability driven by shifting consumer habits and high taxation. Alcohol consumption has declined by 25 per cent from its mid-1970s peak, leading to widespread business closures. Data from the Independent Brewers Association indicates that between January 2023 and mid-2025, at least 47 breweries closed, though some reports suggest the number could reach 80 over the last three years. The wine industry is also facing what growers describe as a “generational crisis,” prompting the South Australian government to provide a $109 million support package. Compounding these economic pressures is the growth of an illicit alcohol market, which the Australian Taxation Office estimates has reached $1.23 billion, or nearly 14 per cent of the total market. This figure has more than doubled since 2015–16. Industry representatives attribute this rise to record-high excise taxes and regulatory loopholes. There are growing concerns among political leaders that organized crime networks are pivoting toward the liquor trade, potentially increasing risks of extortion and violence. ## Timeline ### 2026-11-05: Australia illicit alcohol market reaches $1.23 billion Australia's illicit alcohol market has reached $1.23 billion, accounting for 14 per cent of the market as officials warn of organized crime involvement and tax revenue losses. 3 sources. https://clstr.news/cluster/australia-illicit-alcohol-market-reaches-123-billion ### 2026-11-02: Australia alcohol industry faces crisis amid shifting consumer habits Australia's alcohol industry is struggling with declining consumption, high excise taxes, and business closures in both the craft beer and wine sectors. 11 sources. https://clstr.news/cluster/australia-alcohol-industry-faces-decline-in-beer-and-wine-sales --- Cite as: Australian alcohol industry economic challenges. CLSTR, https://clstr.news/situations/australian-alcohol-industry-economic-challenges