Volumes of Australian wine exports to the UK declined to their lowest level in 25 years in the 12 months to June, according to latest figures from Wine Australia.

The body said the UK remained Australia’s biggest volume export market, despite a decline of 6% to 192 million litres. Value exports to the UK also fell, by 3%, to A$340 million.

Wine Australia said the decline reflected broader structural changes within the UK wine market, including reduced consumption, increased alcohol duty, inflationary pressures and competition from alternative beverage categories and other wine-producing countries. Commercial and mid-priced wines experienced significant declines, but premium Australian wines demonstrated greater resilience, it added.

Total Australian wine exports were down 6% in volume and 7% by value, with volumes falling below 600 million litres for the first time since 2004.

Canada and Asian markets outside of China were earmarked as bright spots for growth.

By product category, red wine remained the largest export segment, accounting for 55% of export volume, although exports decline by both value and volume. Rosé remained a small but slowly growing category.

Wine Australia said overall the latest report highlights a period of transition for Australian wine exports. Success will depend on diversification, premiumisation, and adapting to changing global consumer preferences.