NSW wine industry threatened by declining wine consumption and global glut

THE NSW wine industry will receive State and Federal support to boost demand for local wines and help NSW producers overcome the dual threats of declining wine consumption and a global supply of the beverage.

The $2.6 million NSW Wine Recovery Program is being funded by the Australian Government and delivered by the NSW Government.

“The NSW wine industry is a vital part of our regional economy, supporting local jobs, tourism and communities as it produces some of the world’s best wines,” said Tara Moriarty, Minister for Agriculture and Regional NSW.

“Producers are facing tough conditions, with global oversupply and declining wine consumption putting pressure on the industry and the jobs and communities it supports.

The program is designed to help build resilience, strengthen regional capability and grow demand for NSW wines.

This forms part of the Commonwealth and NSW Government’s commitment to helping primary producers during difficult times.

It will support practical initiatives that respond to current industry challenges and help to unlock new opportunities for growth.

“The NSW Wine Recovery Program will provide targeted support to help producers respond to these challenges, strengthen the sector and remain competitive,” Ms Moriarty said.

The program will be delivered by the NSW Government through the following streams of activities:

• Building regional wine grape and wine producer capability and boosting domestic demand
• Provide financial assistance to eligible industry organisations representing winegrape growers and wine producers in NSW through grants.
• Grants of $20,000 to $100,000 available to strengthen regional industry capability including developing regional and emerging leadership, mental health and business resilience programs, and building the capability of wine grape and wine producers.
• Grants of $20,000 to $250,000 available to boost demand for NSW wine through consumer-focused campaigns promoting NSW wine regions, domestic familiarisation visits, and support for industry participation at trade shows and events.

These initiatives will help the industry respond to ongoing challenges associated with global oversupply and support producers to adapt to changed market conditions and help build stronger regional wine communities.

Australia remains the fifth largest producer and exporter of wine in the world, with exports in the year to March 2026 valued at $2.3 billion.

NSW wine grape growers produced about $150 million in gross value of production in 2025-26.

Applications are now open through the NSW Government’s NSW Wine Recovery Program.