The inaugural ‘State of the Grapes’ report, a collaboration between Wine Australia and Endeavour Group, has uncovered large-scale shifts in the nation’s palates, giving insight into what the wine shelves of the future could look like.

The report analyses sales data from BWS and Dan Murphy’s, with input from Wine Australia, to reveal how factors such as affluence, generational divides, climate and local wine production are shaping and influencing the preferences of local markets across the country.

Endeavour Group General Manager of Premium and Luxury Andrew Shedden said: “We are witnessing a significant evolution in how Australians are choosing their wine.

“What’s emerging from our sales data isn’t just fleeting trends, but long-term, global patterns that are reshaping the entire Australian wine landscape. From the surging popularity of rosé and prosecco to the ‘spritz culture’ invigorating the market, consumers are sending a clear message: they want lighter, more versatile, and often more affordable options.

“We’ve created this report, in collaboration with Wine Australia, to give producers an in-depth look at national consumption habits. As an industry, it’s important not to just continue doing what we’ve always done, but understand and adapt to consumer needs. We hope that this report provides useful direction for producers across the country.”

Wine Australia General Manager, Market Development Paul Turale said: “This report highlights emerging opportunities for Australian wine producers, including signs of category stabilisation and growing interest in lighter wine styles.

“While traditional varieties like Shiraz and Chardonnay remain important, we’re seeing consumers increasingly explore new styles and emerging varieties that match well with increasingly varied consumption occasions.

“These insights provide a strong foundation for producers to consider how they can best meet these evolving consumer demands and the opportunities that they present.”

6 key national findings

Australian wine consumption is undergoing a significant transformation according to the inaugural ‘State of the Grapes’ report. Here are six key national trends.

The wine category’s market share has stabilised

Australia is mirroring the global trend of decline in alcohol consumption, a figure that has been in sharp decline since 2018. Driven predominantly by moderation trends, the decline in overall consumption has been felt across all categories – but there are green shoots on the horizon. From 2023 to 2024, total wine gained 0.1% in share versus total liquor, indicating a stabilisation of the category. This is the first time in over a decade wine grew in share across Endeavour Group.

A national pivot to lighter wine styles

Across every state, there is a clear and consistent trend towards lighter-bodied and more refreshing wine styles. Varieties such as Pinot Noir, Pinot Grigio/Gris, Rosé, and Prosecco have all grown their market share significantly.

This comes at the expense of traditional fuller-bodied red wine varieties like Shiraz, which, despite maintaining a significant share, has seen a steady decline in sales since 2018, with shiraz losing 1.3% share in total wine across Dan Murphy’s and BWS retail channels.

Cask wine, Sauvignon Blanc, traditional red blends and non-vintage sparkling joined shiraz in experiencing the most significant declines over the long term, although non-vintage sparkling has seen a notable uptick in recent years.

Tim Adams Wines founder Tim Adams said: “We have seen firsthand a consolidation in demand for traditional varieties like Shiraz and Cabernet and an explosion of enthusiasm and demand for lighter, more refreshing alternative varieties.

“We have experienced growth in Sangiovese, Tempranillo, Pinot Gris, Fiano and a resurgence in Riesling. It’s really exciting. Some of these newer varieties we started experimenting with 25 years ago and have run pretty hard in recent years converting our vineyard varietal mix to keep up with changing trends and more importantly real demand. The Tim Adams Pinot Gris continues in popularity and we think Fiano has huge potential.”

‘Spritz Culture’ has revitalised the wine category

The wine category’s market share has stabilised over the last year, thanks in large part to innovation breathing new life into the sector. The ‘spritz’ category (sparkling-wine-based cocktails) has spearheaded this, and has become a key feature on drinks menus and bottle shop shelves.

Driven by Millennial and Gen Z consumers seeking accessible, refreshing and Instagrammable options, the desire for Spritz has the potential to define attitudes towards flavoured and sparkling wine styles. Yarra Valley producer Zonzo Estate has set the benchmark in this trend, with its Zoncello Limoncello Spritz dominating in sales and delivering in bringing younger drinkers into the category.

During the Christmas and New Year period alone, more customers purchased Zoncello than any other wine within Endeavour Group’s channels, highlighting an impressive feat for a small player in the industry.

Zonzo Estate Director Roderick Micallef said: “Our ultimate goal with Zoncello was to create a best selling product that is delicious, refreshing and assisted in making wine-based products more accessible to younger drinkers, as an entry point into the market. With new product development, we aim to continue innovating and lead in this category.”

Cost-of-living pressures continue to impact choice

Findings show that value is being prioritised above all else for younger Australians, making promotional deals a big factor in consumer decision making. Older wine drinkers are less swayed by financial concerns however the cohort still appreciates a good promotion.

Out with the old traditions

Findings suggest that younger drinkers are bypassing the traditional ‘rules’ of wine and prioritising their personal taste over conventional food pairings or norms.

This is changing where and when wine is consumed, challenging its once-dominant place at the dinner table. This shift
highlights a need for the industry to communicate new opportunities for younger generations to discover and enjoy wine on their own terms.

High affluence correlates with wine sales

The report reveals that socio-economic status plays a greater role in wine sales than even the size of a state’s local wine industry. High-income areas consistently spend more on wine than other areas.

This is particularly evident in the metropolitan centres of Victoria, NSW and Western Australia, confirming a strong correlation between disposable income and wine expenditure nationwide.

Key findings by state

Victoria

• Leading the way for attracting new drinkers and category innovation
• The leading state for engagement of Gen Z and younger Millennials
• The most pronounced shift from Shiraz to Pinot Noir
• The national leader for spritz sales
• Well positioned to capitalise on the new trends shown in the report
• Favourite varieties: #1 Shiraz, #2 Sauvignon Blanc, #3 Chardonnay
• Favourite regions: #1 Barossa Valley, #2 Marlborough, #3 Champagne

Victoria is leading the market in terms of attracting new shoppers and category innovation. The state’s wine market is uniquely influenced by Gen Z and younger Millennials who show notably higher levels of engagement with wine than in other states. This is significant, as these drinkers are driving growth categories.

While Shiraz remains the top red, Pinot Noir has overtaken Cabernet and ranks as the favourite red wine of Millennial and Gen Z shoppers in Victorian BWS stores. This swing in preference from Shiraz to Pinot Noir has been the most pronounced in Victoria compared with other states.

Victoria also leads the way for spritz sales, which in turn is driving wine category growth. Sales from the state alone contribute to nearly half of all spritz sales nationwide.

Victoria’s wine industry is well-positioned to capitalise on the evolving variety preferences highlighted in the report. This is thanks to the state’s engaged younger drinkers, and the region’s production focus on the very varieties currently experiencing substantial growth: Pinot Noir, Pinot Grigio/Gris, Prosecco, and Spritz.

NSW and ACT

• Australia’s largest wine market
• Less state loyalty compared to other states
• State spend driven largely by affluent consumers
• Favourite varieties: #1 Shiraz, #2 Sauvignon Blanc, #3 Chardonnay
• Favourite regions:#1 Barossa Valley, #2 Marlborough, #3 Champagne

NSW and Australian Capital Territory together make up Australia’s biggest wine market, yet the data shows local shoppers are looking beyond the state to fill their glass, spending more on wine products from South Australia, New Zealand and Victoria.

Although the spend on NSW wines is 1.5 times the national average, 90% of state wine sales come from wines made in other states and countries. This signals an opportunity for local producers to build their reputation and the perceived quality of their products with their local consumer base.

A key factor in the state’s high wine spend is its premium customer segment, which exhibits a higher level of engagement than the premium customer segment found in other states. The over-indexing of certain areas also contributes to the high overall spend, with 11 of the nation’s top 15 wine-buying Local Government Areas located in NSW.

Although Sauvignon Blanc and Shiraz remain the state’s leading varieties, Chardonnay is particularly popular in NSW and the report points to it as a prime candidate for further investment. Pinot Noir presents untapped potential in NSW, despite the variety reporting a lower share of sales versus the national total share. States like Victoria demonstrate the growing popularity of this variety, particularly with younger consumers thanks to their thirst for lighter red wine styles.

Tyrrell’s CEO Chris Tyrrell said: “There are many great wines and wine regions in Australia, with terroir that varies greatly across the country.

“My family has grown grapes, and made wine, in the Hunter Valley for 167 years, and in that time, we’ve amassed generational knowledge of the area, its climate and soils, and have tended to vineyards that have stood the test of time.

“Our standout varietal, Semillon, is unique to the Hunter, and our Vat 1 is widely considered the benchmark of Semillon around the world. It is an unoaked aromatic white wine that is naturally low in alcohol and is unique in a sense of when it ages, it gains character and complexity and can be cellared for decades. Semillon is what makes us unique and Vat 1 is our iconic wine that we are very proud to produce.”

Western Australia

• Deep loyalty to local producers
• Preferences shaped by local heritage and classic varieties
• A thirst for Prosecco
• Favourite varieties:#1 Shiraz, #2 Sauvignon Blanc, #3 Sauvignon Blanc Semillon
• Favourite regions: #1 Margaret River, #2 Barossa Valley, #3 Marlborough

Western Australia’s beverage landscape presents a fascinating case study in regional loyalty. Sales data shows that the state’s consumers spend over 3.5 times more on WA-produced wines than the national average. This is the second-highest index for local state products nationally, surpassed only by Tasmania.

The sales data shows the state as having a thriving passion for wine, despite its warm climate (which typically impacts red wine sales, and creates an over-index in beer consumption) and robust craft beer culture.

The varietal landscape in Western Australia is shaped by its local heritage and tradition, with a strong preference for quintessential WA styles such as Sauvignon Blanc/Semillion Blends, Cabernet Sauvignon and blends.

At the same time, WA emerged as a national leader in Prosecco, a trend seemingly driven by the national trend, rather than the local wine industry, seeing as WA only grew 87 tonnes of Prosecco fruit in the latest 2025 vintage according to Wine Australia’s National Vintage Report (compared to the national crush at 23,864 tonnes).

Sittella Wines Senior Winemaker Yuri Berns said: “With regards to Western Australia’s beverage landscape, there has always been a strong parochial support for West Australian products, in particular wine, and it’s well deserved – Western Australia accounts for 25% of Australia’s fine wine sector.

“Although we are known for making classic Australian varieties incredibly well, there is an increased interest from WA wine producers in alternate styles and alternate varieties. This only adds to West Australia’s dynamic wine making scene,
and will keep evolving with the next generation of winemakers and drinkers.”

South Australia

• A growing appreciation for Shiraz despite the national decline
• The highest commitment to Australian wine
• Value-focused customers with a lower than average spend per litre
• Favourite varieties: #1 Shiraz, #2 Sauvignon Blanc, #3 Non Vintage Sparkling
• Favourite regions: #1 Barossa Valley, #2 Adelaide Hills, #3 Mclaren Vale

While the nation’s thirst for Shiraz declines, South Australia bucks the trend, showing a growing appreciation for the state’s signature red variety, accounting for half of all red wine sales in SA.

The state also has the highest commitment to buying Australian wine, a loyalty driven by a strong preference for their own renowned regions. This is reflected in their dominant national sales share of locally produced Shiraz, Cabernet Sauvignon, and Riesling and their lower-than-average spend on Champagne.

The data also points to a preference for practical, value wines, demonstrated by a higher share of cask wine sales and a lower average spend per bottle.

A notable emerging trend nationally is the rising popularity of Clare Valley region, largely driven by riesling. This indicates a growth opportunity for the state, despite the nation seeking alternatives to other classic local varieties.

Tim Adams said: “We are well aware of the change in consumer preference and we feel as much a part of the change as a beneficiary of it. In fact we think there is no better positioned wine producing region in Australia to cater for this shift in
consumer preference than the Clare Valley.

Tasmania

• The highest allegiance to local producers
• A region perfectly primed to capitalise on current drinking trends
• Favourite varieties: #1 Sauvignon Blanc, #2 Non Vintage Sparkling, #3 Shiraz
• Favourite Regions: #1 Tasmania, #2 Barossa Valley, #3 Marlborough

The report shows Tasmania has the strongest allegiance to local wines of any state. Nearly 20% of wine sales in Tasmania come from in-state products, a figure that is eight times the national average.

Furthermore, 50% of all Pinot Noir and Non-Vintage Sparkling wine sold in Tasmania also made there. While Tasmania under-indexes on Champagne, sparkling is the state’s second-largest wine category.

The national uptick in Pinot Noir and Sparkling consumption makes Tasmania perfectly positioned to capitalize and grow from current drinking trends.

Glaetzer-Dixon Family Winemakers Winemaker Nick Glaetzer said: “It’s no secret that the best pinot noir and sparkling wines in Australia are made in the cool climate of Tassie.

“Our wines are known for their complexity and elegance, and they pair perfectly with the incredible food that Tasmania is renowned for. As vignerons we’re lucky to have a great relationship with our colleagues in liquor retail and hospitality, who share and promote our passion with the consumer.”

Queensland

• The second largest state by wine sales
• Preference for refreshing styles
• The largest consumer of Sauvignon Blanc
• Weaker ties to Australian producers
• The only region with an international region as its top region
• Favourite varieties: #1 Sauvignon Blanc, #2 Shiraz, #Chardonnay
• Favourite regions: #1 Marlborough, Barossa, South Australia

As Australia’s second-largest state by wine sales, Queensland presents a unique and competitive landscape. With a preference for beer and premixed drinks, their wine tastes lean towards refreshing and lighter styles, such as Moscato and Rosé.

White wine is the dominant sub-category, which is a point of difference from most other states. Queensland is also the
nation’s largest consumer of Sauvignon Blanc.

The state shows a weaker ties to local Australian brands, which correlates to its lack of a local state wine industry.

This, combined with their love of Sauvignon Blanc has created a stronghold for New Zealand wine, with Marlborough being the number one selling wine region in Queensland. Notably, Queensland is the only state to report an international region as its top region.

The state’s current lack of loyalty to Australian brands presents a clear opportunity for Australian producers to cultivate deeper engagement, particularly within the white wine segment.

Aussie wine month

The release of the report coincides with Wine Australia’s major Aussie Wine Month campaign this August.

Leading with the tagline ‘We Make A Wine For That’, the national promotional program highlights the diversity and versatility of Australian wine to suit any and all occasions, and encourages consumers to explore the range of Australian wines on offer from local producers.