Australia’s wine grape harvest in 2026 has shrunk to its smallest size since 2000, something which Wine Australia said is unlikely to recover.
From 2025 to 2026, the “national crush” reduced by 300,000 tonnes, falling 25 per cent below the 10-year average. Wine Australia said this equates to 33 million fewer nine-litre cases of wine.
“A number of significant seasonal challenges, including flooding in the inland regions, had an impact on production, but the main driver of this lower crush is a deliberate adjustment in response to changing market conditions,” said Wine Australia’s manager of market insights Peter Bailey.
“There have now been four vintages in a row below the long-term average, suggesting an underlying reset in the tonnage of grapes required by winemakers to meet changing global demand.”
The average purchase value of grapes fell by 6 per cent per tonne, across both cool and warm regions.
“There has been no improvement in grape prices, which suggests that demand is still very soft,” Bailey added. “It’s concerning that there is no sign of recovery for reds despite such a significant adjustment, and that prices for whites are also now declining.”
He said that the current levels of sales could be supported with two-thirds of the current supply base of vineyards in Australia. But, he added that there is a risk of over-correction through removing too many vineyards.
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