The Australian wine industry has been warned that the ongoing red wine glut could worsen.
A recent global downturn in wine drinking, particularly reds, has led to a global oversupply and years of low prices for some wine grape growers.
Compounding the issue, Australia's wine grape crush increased overall this year, although it was still the third-smallest crush in more than a decade, according to Wine Australia's 2025 National Vintage Report.
Winemakers have been warned not to expect grape prices or demand to improve.
Wine Australia market insights manager Peter Bailey said the significant increase in red varieties was problematic and could exacerbate the industry's challenges.
"The increase in the red crush is surprising given that the oversupply that we've experienced in the last few years has been in red," he said. "Conditions are not likely to improve for red grapes until there is a significant reduction in the supply base."
Supply and demand out of balance
The 2025 Australian wine grape crush was estimated at 1.57 million tonnes — worth an estimated $1.13 billion.
It represents an 11 per cent increase in volume on last year, but is still below the 10-year average of 1.71 million tonnes.
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