Everywhere we look around Margaret River right now, vineyards are changing. Whole blocks are either being ripped up or mothballed, some are being sprayed with herbicides to kill the leaves as they grow. Local industry whispers are estimating this is 30-40% of vineyards in the area. Although it's not an official number, it feels about right when you’re driving past rows and rows of neglected vines.
And here’s the kicker: land with vines on it is now cheaper than bare dirt. Wrap your head around that. The industry that helped build this region is now the discount part of the deal.
This week a sizeable producer went under, leaving a stack of growers unpaid and a whole lot of fruit without a home. Sadly, this isn’t a Margaret River-only saga.
The slump is not just national either, California and the rest of the world is also seeing a similar situation.
If you want the deep dive, Wine Australia has done a solid job pulling the numbers together in a report here. The short version?
Domestic wine sales are down about 9% over the past 7 years
Total sales are sitting 11% below the 10-year average
Per-capita wine consumption is now a quarter lower than it was 20 years ago
Hospitality is struggling too. Food costs are up, wages are up, and fewer people are eating and drinking out as the cost of living bites down. Our wholesalers, (the ones who’ve been hustling wine around Australia for 20+ years) are saying this is the most challenging they’ve ever seen it. Depressing? Yep. Frightening? Also yep. But is there hope? Absolutely.
Because here’s another global stat worth noting:
Alcohol consumption worldwide has dropped by around 30% over the past decade.
People are drinking less but better. And honestly, that’s not a bad thing. Healthier choices, more mindful drinking… that’s a future we can get behind.
And with every rough patch comes a pivot. The smart, nimble (usually smaller) operators are already moving. New ideas, new experiences, new ways to use these incredible places we’ve built. That’s the upside of all this: creativity is exploding.
We’re talking vineyard accommodation, distilleries inside wineries, breweries popping up between the barrels, spritz bars, live-music spaces, outdoor cinemas — places shifting gears fast and giving visitors a whole lot more to explore.
The big companies? A lot are offloading assets, cutting volumes, and dropping grower contracts left and right.
The smaller wineries sometimes don’t have those options, so innnovation kicks in, and that’s exactly where the magic happens.
Here are just a few of the legends in our region doing exactly that:
Blind Corner
Yeah! Bar Nature + our own little organic brewery, massively expanded outdoor area and maybe a golf simulator because why the hell not.
Si Vintners
Spritz bar heaven, where they distill their own spirit alongside the wines and spritz it up at their new bar.
LS Merchants
Regular music sessions and chef pop-ups that punch well above their weight.
Windows Estate
The cutest Petit Eco Cabin around — stay, sip, slow down.
Lentendal
Animals, pizza, outdoor cinema nights, live-music arvos — proper family vibes.
So yes, the storm is real. But so is the creativity, the resilience, and the community that’s growing out of it.
And honestly?
We reckon the next chapter is going to be extraordinary.
Thanks for reading.
