State of the Grapes: Insights into Australian Wine Consumer Patterns

Endeavour Group Reveals Consumer Trends

For the first time, Endeavour Group has shared insights into its wine consumer patterns, using shopping data from its Dan Murphy’s and BWS customers. The report, titled ‘State of the Grapes’, was released in conjunction with Wine Australia, revealing and analyzing consumer tastes and preferences, as well as state-by-state data and analysis on consumer preferences, generational divides, and other factors influencing the local markets.

“Customer’s Choices Will Determine the Trajectory of Australian Domestic Wine”

“Ultimately, customer’s choices will determine the trajectory of Australian domestic wine,” said Tim Carrol, director of merchandise and buying at Endeavour Group, during a preview of the report at Wine Australia’s Global Market Update in July. “We believe data insights can play a very important role in helping suppliers—and you all—to navigate the ever-evolving customer changes and their choices.”

A National Pivot to Lighter Wine Styles

The report reveals that 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.

Shiraz loses 1.3% share in total wine across Dan Murphy’s and BWS retail channels
Pinot Noir has overtaken Cabernet as the favourite red wine of Millennial and Gen Z shoppers in Victorian BWS stores
Victoria leads the way for spritz sales, contributing to nearly half of all spritz sales nationwide

‘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.

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

VIC

Leading the way for attracting new drinkers and category innovation
Most pronounced shift from Shiraz to Pinot Noir
National leader for spritz sales
Favourite Varieties: #1 Shiraz, #2 Sauvignon Blanc, #3 Chardonnay
Favourite Regions: #1 Barossa Valley, #2 Marlborough, #3 Champagne

NSW

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

WA

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

SA

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

TAS

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

QLD

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

Conclusion

The report provides valuable insights into the evolving preferences and trends in the Australian wine industry. As the industry continues to navigate the changing landscape, understanding these shifts is crucial for producers, retailers, and consumers alike. By embracing innovation, adapting to changing consumer demands, and focusing on quality and value, the Australian wine industry can continue to thrive and grow.