A noticeable drop in grower numbers reflects the ongoing disruption to trade with China. While efforts aim to drive recovery across the wine sector, the fallout poses further risks to regional economies and hundreds of rural businesses. Since China introduced punitive tariffs in 2020, the number of wine grape growers has declined by 13% from 6,251 in 2018 to 5,408 in 2024.
The wine industry has long been a vital part of rural Australia's economy, especially in major growing areas like South Australia's Riverland and Victoria’s Murray-Darling. However, when China - one of Australia’s key export markets - imposed harsh tariffs on wine imports, the result was a severe economic blow. Many growers were forced to reduce operations or exit entirely. Despite this, the total area under vine has remained steady, pointing to a shift towards larger producers taking more control of the market.
Vineyard land has marginally increased, rising from 146,128 hectares in 2018 to 146,244 hectares in 2024. This trend suggests that larger producers are consolidating their place in the sector. South Australia, the country's top grape-growing state, experienced a net loss of 753 hectares, just over 1% of the state's total vineyard area. Inland regions like the Riverina, Murray-Darling and Swan Hill have shown similar patterns of decline.
To address ongoing uncertainty, a proposal has been made to require wineries to publish minimum grape prices earlier in the season. The change is designed to bring greater fairness and transparency between producers and growers. Supported by growers in the Riverland, the bill is expected to be introduced in the South Australian parliament this week. If passed, it would compel wineries to release indicative prices by the end of September instead of December, giving growers more time to evaluate costs and decide whether to proceed with planting.
Although the sector continues to face significant challenges, it still plays a substantial role in the national economy. The wine industry contributes $51.3 billion each year and supports more than 200,000 jobs spanning growing, production and tourism. Growth in wine tourism, valued at $34.1 billion in 2024 and involving 7.5 million visitors, has provided the industry with some relief, helping to offset sharp losses from traditional winemaking and grape production activities.
