Wine industries of Australia and New Zealand are riding the wave of a global demand downturn, as cash-strapped and health-conscious shoppers buy less alcohol worldwide.The consumption of alcoholic beverages globally has declined for the third year in a row in 2025, according to drinks data firm IWSR.A new report by industry body Wine Australia showed its wine exports sank to a 22-year low, falling below 600 million litres exported for the first time since 2004.Export earnings were down 7 percent in the year ended June to $2.7 billion ($AU2.3b), the report said.Wine Australia's general manager of market development, Paul Turale said the ongoing challenges impacting global demand for wine had not abated."The global wine sector is being re-shaped by lower consumption, tighter regulation, climate volatility, trade uncertainty and changing consumer occasions," he said in the report."The impact is felt through the entire supply chain, and the effects cannot be under-estimated."The data suggests that the global wine market is not facing a short downturn; it is facing a new demand environment."New Zealand wine 'resilient'Looking across the Tasman Sea to new wine export data from New Zealand, volumes increased over the same period to more than 306 million litres in the year to June, according to data from industry group New Zealand Winegrowers.However, they were not earning as much as before, hovering around the $2.1 billion mark in value, rising just 0.5 percent in that time.The average price per litre was $6.88 per litre in the year to June, down from $7.27 the year prior.NZ Winegrowers' general manager of brands, Charlotte Read said the industry was navigating a period of significant and rapid change globally, like changing consumer preferences."I won't sugar coat it, the global wine industry is under incredible pressure at the moment, and we are going through a period of reset as as an industry," she said."Whilst we're all in the same arena in a softening global market, New Zealand is showing remarkable resilience."She said the industry was working through an "adjustment period", where winemakers were making individual business decisions about their operations.This included re-assessing their export markets and distributors, working to premiumise and find value in every bottle sold.ABC News / Mitchell Woolnough"Our members, being growers, they're making practical decisions in the vineyard, reviewing the vineyard plans, managing costs carefully to help align their supply to market conditions," she said."It's a really interesting story right now for us of resilience changing consumer preferences and how we in New Zealand are adapting to that rapidly evolving global environment."While the wine industry in Aotearoa was far from immune to global market challenges Australia was also facing, Read said New Zealand worked hard to maintain its position as a premium producer of sustainable wines."Given the strong consumer demand out there for for New Zealand wine, it does put us in a much stronger position than many wine-producing countries."However, wine production was acutely challenging in areas like Tairāwhiti, where one large wine producer, Indevin decided to cut its supply of grapes back in May.There were reports that thousands of grapevines had been uprooted around Gisborne as a result.Top markets comparedThe United Kingdom was Australia's top market for wine export volume, but was at its lowest level in 25 years, with mid-priced wines particularly affected.In the year to June, its UK export volumes declined 6 percent to 192m litres, and fell 3 percent in value to $410m ($AU340m).However, New Zealand's exports to the UK increased 16 percent in volume in that time, with value up 4 percent to $426m.To the key United States market, tariffs uncertainties and reduced consumer demand continued to hurt exports, particularly for Australia.Australia's US exports dropped 15 percent in volume in the year to June, but sinking even further, 27 percent in value to $274m ($AU229m).Kangaroos in vines, Australia 2016AFPThe Wine Australia report said overall, the US remained one of the largest contributors to the global decline in its exports.But both Australia and New Zealand re-routed greater volumes of wine to its neighbour Canada over that time.Furthermore, New Zealand's US wine exports fell 5 percent in volume, and value down 7 percent to $720m.To Mainland China, Australia recorded a significant drop to its largest market by value, with exports to China down 15 percent to $906 million ($AU756m) amid a subdued post-tariff recovery since 2024.However, declines here were offset by good growth in other Asian centres, Singapore, Thailand and Japan, the Wine Australia report said.Though from a lower base, China was a standout for New Zealand this year, with volumes soaring 72 percent and value up 24 percent on last year to more than $69m.Read said 90 percent of the wine Aotearoa produced was white, which was a growing trend across Asia.