The Australian wine industry is the world's fourth largest exporter of wine with approximately 750 million litres a year to the international export market with only about 40% of production consumed domestically. The wine industry is a significant contributor to the Australian economy through production, employment, export and tourism.
There is a $2.8 billion domestic market for Australian wines, with Australians consuming over 530 million litres annually with a per capita consumption of about 30 litres – 50% white table wine, 35% red table wine.Norfolk Islanders are the second biggest per capita wine consumers in the world with 54 litres. Only 16.6% of wine sold domestically is imported.
Wine is produced in every state, with more than 60 designated wine regions totalling approximately 160,000 hectares; however Australia's wine regions are mainly in the southern, cooler parts of the country, with vineyards located in South Australia, New South Wales, Victoria, Western Australia, Tasmania and Queensland. The wine regions in each of these states produce different wine varieties and styles that take advantage of the particular Terroir such as: climatic differences, topography and soil types. The major varieties are predominantly Shiraz, Cabernet Sauvignon, Chardonnay, Merlot, Semillon, Pinot noir, Riesling, and Sauvignon blanc. Wines are often labelled with the name of their grape variety, which must constitute at least 85 percent of the wine.
Vine cuttings from the Cape of Good Hope were brought to the penal colony of New South Wales by Governor Phillip on the First Fleet (1788). An attempt at wine making from these first vines failed, but with perseverance, other settlers managed to successfully cultivate vines for winemaking, and Australian made wine was available for sale domestically by the 1820s. In 1822 Gregory Blaxland became the first person to export Australian wine, and was the first winemaker to win an overseas award. In 1830 vineyards were established in the Hunter Valley. In 1833 James Busby returned from France and Spain with a serious selection of grape varieties including most classic French grapes and a good selection of grapes for fortified wine production. Wine from the Adelaide Hills was sent to Queen Victoria in 1844, but there is no evidence that she placed an order as a result. The production and quality of Australian wine was much improved by the arrival of free settlers from various parts of Europe, who used their skills and knowledge to establish some of Australia's premier wine regions. For example, emigrants from Prussia in the mid-1850s were important in establishing South Australia's Barossa Valley as a winemaking region. In smaller scale, winemakers from Switzerland also helped in establishing Geelong wine region in Victoria in 1842.