The Australian wine industry is one of the world's largest exporters of wine, with approximately 800 million out of the 1.2 to 1.3 billion litres produced annually exported to overseas markets. The wine industry is a significant contributor to the Australian economy through production, employment, export, and tourism.
There is a $3.5 billion domestic market for Australian wines, with Australians consuming approximately 500 million litres annually. 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.