Australia’s wine industry saw a notable rebound in 2025, with the country’s total winegrape crush rising by 11% compared to last year. The National Vintage Report 2025, released by Wine Australia, estimates the national crush at 1.57 million tonnes, an increase of 160,000 tonnes from 2024. Despite this improvement, the figure remains 140,000 tonnes below the 10-year average of 1.71 million tonnes.
The increase comes after a challenging season marked by adverse weather. Dry conditions and a severe spring frost affected yields, particularly among early-flowering white grape varieties. Peter Bailey, manager of market insights at Wine Australia, explained that while weather played a role in limiting the crop, strategic decisions also influenced the outcome. He said that the sector is responding to a global decline in wine demand by adjusting production levels to better align with market needs.
Bailey noted that without active intervention, Australia could have matched its long-term average crush this year because the supply base has not changed significantly over the past five years. However, he emphasized that keeping production below average is a deliberate move to balance supply and demand, which is essential for ensuring sustainable prices for both growers and producers.
Red grape varieties were the main driver behind this year’s growth, with their crush increasing by 20% over last year. White varieties saw only a modest rise of 2%. Still, both red and white grapes remain below their respective 10-year averages. The red grape crush is estimated to be the third-smallest in more than a decade, trailing only the previous two years. It was 9% below its decade average, while white grapes were down by 8%.
Bailey expressed concern about the growing imbalance between red and white varieties. He warned that the significant increase in red grapes could worsen existing issues with surplus red wine stocks and may further dampen demand for these varieties in future vintages. On the other hand, he pointed out that consumers worldwide will continue to have access to high-quality Australian red wines.
Despite lower production volumes compared to historical norms, the total value of the 2025 crush reached $1.13 billion—an increase of $136 million or 14% from last year. Price trends varied across regions: average purchase prices for both red and white grapes fell in cool and temperate areas but rose in warm inland regions.
Shiraz returned as Australia’s most-crushed winegrape variety in 2025 after volumes jumped by 23%. Chardonnay dropped back to second place following a sharp decline of 13%, mainly due to frost damage across several regions. Even so, Chardonnay remains Australia’s leading white variety.
Other major grape varieties also posted gains this year. Cabernet Sauvignon, Pinot Noir, Pinot Gris/Grigio, and Sauvignon Blanc all recorded double-digit increases compared to last year. For the first time, Pinot Gris/Grigio overtook Merlot to become the fifth most-crushed variety nationally—a milestone that places three white varieties among Australia’s top five for the first time.
However, only three of the top ten grape varieties—Pinot Gris/Grigio, Sauvignon Blanc, and Pinot Noir—had higher crush volumes this year than they did ten years ago.
South Australia maintained its position as the country’s largest winegrape-producing state, followed by New South Wales and Victoria. Western Australia, Tasmania, and Queensland all reported year-on-year increases in their crush totals. Tasmania stood out with an estimated record harvest for the second consecutive year.
Industry leaders say these results reflect ongoing efforts to adapt to changing global market conditions while managing local challenges such as weather extremes and shifting consumer preferences. The focus remains on balancing supply with demand to support stable prices and maintain Australia’s reputation for quality wine production worldwide.
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