Australia’s wine production surges, despite surplus

Australia’s wine output jumped 9% in 2025, reaching an estimated 1.13 billion litres, as red varieties led a robust rebound. However, the uplift arrived against a backdrop of sluggish global demand, pushing national inventories to their highest level in a decade and raising concerns over long-term market balance.

The latest Wine Australia report shows production exceeded sales for the first time in three years, leaving a surplus of more than 50 million litres and lifting total stocks to 2.06 billion litres. Red wine output rose 15%, reclaiming dominance at 52% of production, while white wine inventories came under strain due to falling sales.

Exports grew 3%, boosted by a sharp recovery in shipments to China, yet domestic consumption continued to slide. Analysts warn that without significant reduction in vineyard area, grape prices and margins could remain under pressure as the global market continues to wrestle with oversupply.