Thinking of Buying a Wine Business in Australia? Here Are 3 Vital Questions to Ask
The Australian wine production industry generates $7.2 billion in revenue in 2025, employing almost 20,000 people across 2,400 enterprises.
Profit margins average 5.8%, yielding approximately $417 million in annual profit, with revenue projected to edge down slightly by 0.4% annually through 2030 due to oversupply pressures and shifting consumption patterns.
After several difficult years marked by China’s 2020–2024 tariffs and pandemic disruptions, the industry is now recovering. The removal of Chinese import tariffs in April 2024 has reignited exports, particularly for premium red wines. However, domestic consumption continues to decline as health-conscious consumers shift toward low-alcohol options, while premiumisation and tourism remain strong growth drivers.
1. Is the Business Financially Sustainable and Profitable?
Why It Matters:
Wine production is highly capital-intensive, and profitability depends on efficient vineyard management, brand strength, and export diversification. With oversupply issues and rising input costs, financial resilience and pricing strategy are critical.
What to Check:
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Revenue and margins – Benchmark against the 5.8% profit margin, noting that profitability is improving after China’s tariff repeal.
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Input costs – Wine grape prices are volatile, projected to rise 2.6% annually through 2032, affecting production expenses.
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Export exposure – Exports account for roughly 36% of revenue, with China, the US, and the UK as key destinations. The renewed Chinese market offers upside, but diversification into India, Thailand, and South Korea is vital.
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Cash flow and ageing cycles – Wine production has long lead times; ensure strong liquidity and production planning to manage harvest and inventory fluctuations.
2. How Competitive Is the Business’s Market Position?
Why It Matters:
The industry remains fragmented but is consolidating around major producers like Treasury Wine Estates (18.2%), Pernod Ricard Australia (8.1%), and Casella Family Brands (5.8%), who dominate exports and branding. Smaller wineries survive by focusing on cellar-door sales, niche varieties, and regional branding.
What to Check:
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Brand differentiation – Premiumisation is now essential. Strong brands such as Penfolds, Wolf Blass, and Jacob’s Creek thrive by commanding higher per-bottle prices.
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Market access – South Australia holds 31% of all wineries, with Barossa Valley and McLaren Vale leading national production. Proximity to tourism routes enhances cellar-door profitability.
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Distribution strength – Coles and Endeavour Group control nearly 42% of domestic retail sales, pushing private-label competition and pressuring supplier margins.
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Technology and automation – Advanced bottling, automated barrel systems, and robotic handling (as implemented by Treasury Wine Estates) reduce labour costs and improve consistency.
3. Is the Business Aligned with Industry Trends and Future Growth?
Why It Matters:
Australia’s wine sector is evolving toward sustainability, export diversification, and health-conscious consumption. Long-term success depends on adapting to global trade shifts and consumer preferences.
What to Check:
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Export market recovery – With tariffs lifted, exports to China rebounded from $8 million in 2022–23 to $378 million in 2023–24, now expected to regain a 17% global share.
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Premiumisation and branding – Consumers are drinking less but spending more per bottle. Premium and sparkling wines now represent 17% of domestic wine consumption, up from 15% in 2020.
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Sustainability compliance – Demand for vegan-friendly, low-alcohol, and sustainable production is increasing. Producers using energy-efficient methods and plant-based fining agents appeal to new market segments.
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Tourism and cellar-door strategy – As international tourism surpasses pre-pandemic levels in 2025, on-premise and cellar-door sales remain vital to profitability for boutique vineyards.
Ready to Invest in a Thriving Wine Business?
With the Chinese market reopened, tourism rebounding, and demand for premium wines rising, Australia’s wine industry is once again a strong prospect.
Businesses that leverage export diversification, brand distinction, and sustainable production will be best positioned for stable and long-term success.
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