Australia’s winery and vineyard market is undergoing a period of significant change, with shifting consumer behaviour, oversupply and evolving buyer sentiment reshaping the sector.
Recent coverage in the Australian Financial Review highlighted these challenges, with Herron Todd White Agribusiness Associate Director, Chris Algie, contributing expert commentary on the trends emerging across key wine regions.
Oversupply and changing consumption habits
A surplus of fruit, combined with younger generations drinking less alcohol and a continued rise in online wine sales, has placed pressure on traditional cellar door models. As operating costs increase and cost-of-living pressures impact discretionary spending, wineries are seeing a shift in how consumers purchase and engage with wine.
Chris noted that while online sales continue to grow, this has come at the expense of cellar door trade. The high labour costs associated with running cellar doors, coupled with tighter household budgets, have resulted in fewer consumers purchasing wine through traditional channels.
“There appears to be a shift in how wine is consumed globally, with younger generations drinking less than previous generations,” Chris explained.
Vineyards being repurposed
One of the most notable trends identified in the market is the increasing number of vineyards being purchased for redevelopment into alternative horticultural uses.
Chris observed that a number of larger-scale vineyards acquired this year appear set to transition away from wine grape production, particularly in areas such as Langhorne Creek and warmer inland regions. These properties are being redeveloped into permanent tree crops such as olives, citrus and table grapes.
Buyers, however, remain highly selective.
“Purchasers are targeting only properties with suitable soil types and strong fundamentals,” Chris said, reinforcing the importance of expert valuation advice in identifying assets with long-term viability.
A market in transition
The AFR article also highlighted subdued pricing and a growing number of wineries coming to market, ranging from large corporates to smaller family-owned operations. While major producers have pulled back on acquisitions, this has created flow-on effects across the middle market.
Despite current challenges, there remains confidence that activity will return as supply and demand rebalance, with high-quality assets still attracting interest from diverse buyers including hoteliers, investors and private syndicates.
Specialist Agribusiness expertise
Chris’ contribution to this national conversation reflects the depth of expertise within Herron Todd White’s Agribusiness team.
Our specialist valuers operate across rural, agribusiness and lifestyle sectors nationwide, bringing deep regional knowledge, data-driven insights and hands-on industry experience. From vineyards and orchards to grazing and broadacre assets, our team understands the unique drivers influencing value across each sector.
This specialist knowledge enables us to provide accurate, independent advice to clients navigating complex market conditions – whether for acquisition, divestment, refinancing, succession planning or strategic decision-making.
Supporting informed decisions
As the agribusiness landscape continues to evolve, informed insights are more important than ever. Our team remains closely connected to industry movements, emerging trends and regional market dynamics to ensure our clients are well positioned for the future.
We are proud to see our people, like Chris, contributing to broader industry discussions and helping shape understanding across the sector.