Australian wine consumption is undergoing a significant transformation, according to the inaugural State of the Grapes report, a collaboration between Wine Australia and Endeavour Group. The new data uncovers large scale shifts in the nation’s palates, giving insight into what the wine shelves of the future could look like.
Endeavour Group general manager of premium and luxury, Andrew Shedden, said the company is 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,” said Shedden.
“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,” he said.
The first-of-its-kind report analyses sales data from BWS and Dan Murphy’s, with input from Wine Australia, to reveal how factors like affluence, generational divides, climate, and local wine production, shape and influence the preferences of each local market.
Wine Australia general manager market development, Paul Turale, said the report offers valuable insights into shifting consumer preferences.
“This report highlights emerging opportunities for Australian wine producers, including signs of category stabilisation and growing interest in lighter wine styles,” said Turale.
“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,” he said.
Key national findings
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 according to the State of the Grapes report.
From 2023 to 2024, total wine gained 0.1 per cent 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 per cent 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.
‘Spritz Culture’ revitalises 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.
Cost of living continues 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, New South Wales, 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.
New South Wales and Australian Capital Territory
- 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
New South Wales 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 New South Wales wines is 1.5 x the national average, 90 per cent 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 New South Wales.
Although Sauvignon Blanc and Shiraz remain the state’s leading varieties, Chardonnay is particularly popular in New South Wales, and the report points to it as a prime candidate for further investment. Pinot Noir presents untapped potential in New South Wales, 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.
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 Western Australia-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 Western Australia styles such as Sauvignon Blanc/Semillion Blends, Cabernet Sauvignon, and blends.
At the same time, Western Australia emerged as a national leader in Prosecco, a trend seemingly driven by the national trend, rather than the local wine industry, seeing as Western Australia 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).
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 South Australia.
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.
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 per cent of wine sales in Tasmania come from in-state products, a figure that is eight times the national average.
Furthermore, 50 per cent of all Pinot Noir and Non-Vintage Sparkling wine sold in Tasmania is 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.
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.
Check out the full report for further insights and information, available online at endeavourgroup.com.au.
