In a landmark collaboration, Wine Australia and Endeavour Group have released the first ever State of the Grape Report, uncovering large scale shifts in the nation’s palates, providing insight into what wine shelves could look like in the future.
The 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 state’s local market.
The release of the report coincides with Wine Australia’s major Aussie Wine Month campaign this August, with the tagline ‘We make a wine for that’ – a national promotional program highlighting the diversity and versatility of Australian wine to suit any occasion
Andrew Shedden, General Manager of Premium and Luxury at Endeavour Group, said the inaugural report indicates Australian wine consumption is undergoing a transformation, with lighter varietals leading the way.
“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,” he said.
“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.”
Paul Turale, General Manager, Market Development of Wine Australia echoed Shedden’s sentiment, noting that product preferences appear to shift with the drinking occasion.
“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.”
He added: “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.”
Shedden further emphasised that the report was created to provide industry with the tools need to adapt.
“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.”
Key findings by state
According to the report findings, Victoria is leading the way for attracting new drinkers and category innovation, as the key state for engagement of Gen Z and younger Millennials.
With a decline in Shiraz popularity nationally there has been a swing to Pinot Noir, which has been the most pronounced in Victoria compared with other states. It is also now the national leader for spritz (sparkling-wine-based cocktails) sales.
While in South Australia the state’s signature Shiraz accounts for half of all red wine sales, representing 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.
In Victoria, New South Wales and ACT their number one favourite regions is South Australia’s Barossa Valley, followed by Marlborough, and Champagne.
New South Wales and Australian Capital Territory together make up Australia’s biggest wine market, yet the data shows shoppers are looking interstate, spending more on wine products from South Australia, New Zealand, and Victoria.
Although the spend on New South Wales wines is 1.5 times the national average, 90 per cent of state wine sales come from wines made in other states and countries, signalling an opportunity for local producers to build their reputation, and the perceived quality at home.
While in Western Australia, regional loyalty is high. 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.
Yuri Berns, Senior Winemaker at Sittella Wines said the varietal landscape in Western Australia is shaped by its local heritage and tradition.
“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 per cent 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.”
However, Tasmania has the strongest allegiance to local wines with nearly 20 per cent of wine sale coming from in-state products (eight times the national average).
Fifty per cent of all Pinot Noir and Non-Vintage Sparkling wine sold in Tasmania is also made there, as the state under-indexes on Champagne, sparkling is its second-largest wine category.
In Queensland, the state shows weaker ties to local Australian brands, which correlates to its lack of a local state wine industry, however it is second-largest state by wine sales and the only state to report an international region as its top region.
With a preference for beer and premixed drinks, their wine tastes lean towards 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, which has created a stronghold for New Zealand wine, with Marlborough being the number one selling wine region in Queensland.
Opportunities for producers
The report indicates that the Australian market appears to have stabilised, following periods of decline.
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 and is also the first time in over a decade wine grew in share across Endeavour Group.
As interest in wine grows, the report reveals a clear and consistent trend towards lighter-bodied and more refreshing styles such as Pinot Noir, Pinot Grigio/Gris, Rosé, and Prosecco all growing in market share, providing the opportunity to capitalise on the trend.
The report also indicates that market stabilisation may be a result of product innovation with the spritz category with Millennial and Gen Z consumers seeking accessible, refreshing and shareable options leading to growth.
Yarra Valley producer Zonzo Estate has set the benchmark in this trend, with its Zoncello Limoncello Spritz, with the report revealing over the Christmas and New Year period alone, more customers purchased Zoncello than any other wine within Endeavour Group’s channels.
Zonzo Estate’s Director Roderick Micallef said: “Our ultimate goal with Zoncello, was to create a bestselling 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.”
Younger drinkers are also seeking value due to the cost of living, prioritising their personal taste over conventional food pairings or norms, ultimately changing where and when wine is consumed.
The report findings give producers essential information to understand local trends and generational preferences in order to continue market growth in Australia’s wine industry.