Strategy and development Australia

The wine and spirits market in Australia: opportunities, trends and challenges

Emmanuel Bisi
Author

October 13, 2025
Published on

A dynamic market, buoyed by growth but troubled by tensions

In 2024, the Australian market for alcoholic beverages is estimated at AUD 27.2 billion, with a forecast average annual growth rate of 4.2% to 2034 ( source: IBISWorld, Wine Australia). This sustained growth reflects a profound change in consumer behavior and a move upmarket in products, but also challenges related to taxation, regulation and local competition.

The Australian wine market: between structural change and revitalized exports

Declining domestic consumption

Between 2020 and 2022, wine consumption fell by 9%, or 50 million liters, mainly due to the younger generation's loss of interest in traditional wine and a diversification of preferences towards craft beer, cocktails and non-alcoholic drinks.

Overproduction of red wines and pressure on stocks

Over production of red wines, particularly Shiraz, has been exacerbated by the closure of the Chinese market following the imposition of tariffs in 2020, leading to saturation of stocks and a fall in prices for some producers.

Exports to China to resume in 2024

The gradual lifting of Chinese customs duties in March 2024 led to a rebound in exports: 83 million liters exported to China between April and December 2024, worth AUD 902 million ( source: Wine Australia - Export Report, 2024).

Changes in varietal preferences

In 2024, Chardonnay once again became the most produced grape variety in Australia, with a 31% increase in production, surpassing Shiraz for the first time since 2013. This development illustrates are configuration of Australian consumer expectations.

Spirits in Australia: sustained growth and premiumization

An expanding industry

The spirits market generated AUD 16.28 billion in 2022, with an average annual growth rate of 4.3% between 2017 and 2022 ( source: IBISWorld). It remains one of the most dynamic segments in the alcoholic beverages market.

Upmarket and new categories in vogue

Australians are increasingly interested in premium spirits. Strong trends include

Locally-produced artisan gin
Single malt whisky
Premium tequila and mezcals

Consumers are looking for products with high added value, traceability and a strong identity.

Heavy taxation impacting prices

Excise duty on alcohol can represent up to 63% of the selling price for certain local brands (e.g. Bundaberg Rum), driving some consumers towards lower-taxed or imported alternatives.

Consumer trends and market developments

Moving upmarket and preference for local products

Local products valued for their perceived quality, reduced carbon footprint and support for the national economy.
Emphasis on premiumization, with consumers willing to pay more for wines and spirits produced using artisanal methods.

Innovation, diversity and practical formats

Ready-to-drink (RTD) cocktails, flavored spirits and miniature formats on the rise.
Growing interest in low-alcohol or alcohol-free drinks, particularly among millennials and Gen Z.

👉 Read our article The No/Low alcohol drinks market in Australia

Environmental awareness

Rising demand for organic, certified sustainable or zero-waste products.
Eco-responsible production practices becoming a purchasing criterion.

Market access and distribution channels

Large-scale distribution

The Endeavour Group ( Dan Murphy's, BWS) and Coles Liquor dominate the market, accounting for a significant share of sales.

Hotels and restaurants (Horeca)

The Horeca channel remains strategic for high-end brands, albeit sensitive to economic cycles and variations in tourism.

E-commerce booming

Online sales of wines and spirits are booming post-COVID. Digital technology has become an essential development lever, notably via :

Specialized marketplaces
Direct sales from wineries
Influencer campaigns and brand storytelling

Regulations: what you need to know before exporting to Australia

Labeling & compliance: FSANZ (Food Standards Australia New Zealand) imposes strict rules on labeling, nutritional claims and allergens.
Import licensing: Importers must be registered with the Australian Border Force.

Taxation: Excise duties vary according to product type and alcohol content. Good customs planning is essential.

Opportunities for French brands

French wines and spirits retain an image of prestige and quality with Australian consumers. Several segments offer strong potential:

Grands crus and appellations d'origine ( Bordeaux, Burgundy, Champagne)
Champagnes and Crémants for the events and luxury segment
High-end spirits ( Cognac, Armagnac, Chartreuse, artisanal liqueurs).

Made in France" remains a powerful differentiating asset in attracting customers looking for authenticity and refinement.

How Expandys can help you in Australia

Based in Sydney, our team will help you to establish a successful presence in the Australian market:

Customized market research (trends, prices, channels, competitors)
Commercial entry strategy tailored to your product range
Regulatory compliance and customs support
Business development: networking with qualified distributors/importers
Local operational follow-up: professional events, animations, logistical support