Grapegrowing, winemaking and wine-related tourism contributes $51.3 billion to the Australian economy and supports more than 200,000 jobs, according to the Economic Contribution of the Australian Wine Sector 2025 report released by Wine Australia today.
The independent report produced by AgEcon Plus and Gillespie Economics highlights the sector’s multiplying effect, where the flow-on from production, experiences and employment contribute significantly higher to the Australian economy than the initial farm gate value.
As a result, for every additional $1 million in gross output from the wine sector, the wider Australian economy gains $2.16 million and for every job gained in the wine sector, the Australian economy gains 1.42 jobs.
Wine Australia chief executive officer Dr Martin Cole said the report demonstrates the importance of the sector to the economy and particularly for Australia’s regional communities.
“The grape and wine sector is a unique contributor to the Australian economy given its significant multiplier effect and importance to the vitality of regional communities,” Dr Cole said.
“Winegrapes are grown and wine produced in regional communities around Australia. The sector is an ambassador for these regions, attracting people from all around the world back into our regions and businesses for first-hand experiences. The sector also indirectly contributes to regional communities through the flow-on effects to supplier industries, as well as the goods and services used locally by employees.”
The report Economic Contribution of the Australian Wine Sector 2025 shows that the $51.3 billion that the sector contributes to the Australian economy includes $25.4 billion in value-added, which is the difference between the gross value of the business turnover and the costs of raw materials and services to produce the output. The overall economic contribution also includes $15 billion in wages and salaries for 203,392 direct and indirect employees.
A similar report was produced in 2019, but direct comparison is not possible due to changes in data, refinements in modelling methods, and the impact of inflation. However, when looking at the two “snapshots in time”, losses in economic contribution of grapegrowing and winemaking have been offset by growth in wine tourism.
There were 7.5 million visits to wineries from both domestic and international travellers in the year ended December 2024. For those travellers that included a visit to a winery, they spent a combined $11.6 billion during their entire trip and are typically higher spenders with an average spend per trip of $1,487 [1].
The full report is available from www.wineaustralia.com/market-insights/australian-wines-economic-contribution
Wine Tourism and Cellar Door Grants extended
Meantime, industry body Australian Grape & Wine (AGW) has welcomed today’s announcement by the Federal Government of Round 7 of the Wine Tourism and Cellar Door Grants, and its commitment to extend the program for a further three years.
Valued at $10 million each financial year, the program allows eligible wine producers to apply for grants of up to $100,000 for their eligible rebatable domestic cellar door sales. The program encourages agritourism by rewarding producers who attract visitors to Australia’s world-class wine regions.
Since its establishment, it has supported hundreds of wineries and cellar door operations to enhance visitor experiences and showcase the premium wines that underpin our national reputation.
AGW chief executive Lee McLean said today’s announcement was a clear signal of the government’s commitment to regional Australia.
“The Wine Tourism and Cellar Door Grants Program is instrumental in helping wineries reinvest in their cellar door experiences, attracting more visitors and strengthening regional economies. Extending this program for another three years provides certainty for producers at a challenging time for our industry,” McLean said.
“The new Economic Contribution of the Australian Wine Sector report confirms what we already know: wine is not only a key export industry, but also one of Australia’s most important agritourism drivers. With more than 200,000 Australians supported by our sector and $51 billion contributed to the economy, investing in cellar door experiences is investing in regional jobs, tourism, and prosperity.”
In a joint statement, the Minister for Trade and Tourism, Don Farrell, and the
Minister for Agriculture, Fisheries and Forestry, Julie Collins, revealed that since its inception, the Wine Tourism and Cellar Door Grant Program has so far provided over $60 million to recipients through more than 1,000 grants.
“With 7.5 million visits to Australian wineries in 2024 alone, the wine sector is a key part of Australia’s attraction as a tourism destination,” said Minister Farrell.
“Wine hopping has become a huge fixture of weekend getaways – directly benefiting producers and supporting local economies and creating jobs, particularly in our regions.
“That is why we are supporting our proud wine and cider producers to sell more of their world-class products at their cellar doors.
He said that the Federal Government also remains committed to “opening new export doors for our wine and cider exporters, providing opportunities to diversify trade”.
Minister Collins acknowledged the significant challenges that the Australian grape and wine sector has faced over recent few years, and she said this was ‘why the government is extending the Wine Tourism and Cellar Door Grant Program’.
“There are so many reasons to be proud of Australia’s wine industry, and the release of today’s report from Wine Australia shows the significant contribution the industry makes to the Australian economy,” Minister Collins said.
“Our government values our talented, innovative and hard-working wine industry, and the important contribution they make to their communities, and the country as a whole.”
In response to the funding extension, Dr Cole reiterated the significance of the sector.
“Wine is produced in 65 wine regions around Australia and is an important part of the communities within these regions. Grapegrowing, wine production and wine tourism goes beyond farmgate value with economic benefits flowing on to supplier industries, local goods and services used by employees and by tourists.
“We’re delighted to administer the Wine Tourism and Cellar Door Grants on behalf of the Australian Government.
“The wine sector attracts visitors from all around the world to regional Australia and providing wine tourism experiences helps these customers connect more deeply to the places and people behind our wines and wine regions.”
Round 7 of the program, which opens today, will close on 31 October 2025.
Applications for the Wine Tourism and Cellar Door Grant Program are now open. For more information and to apply, visit: www.wineaustralia.com/wine-tourism-and-cellar-door-grants
[1] Tourism Research Australia
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