Many California growers can’t find buyers as the industry produces more wine grapes than the market wants. Wine consumption is declining globally as people drink less.
At its peak during the pandemic, California had almost 600,000 acres of vineyards, but farmers have removed or stopped actively growing wine grapes on roughly 25% of that land, said Jeff Bitter, president of Allied Grape Growers, which represents about 500 farmers statewide.
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In the U.S., sales of wine cases declined 23% from 427 million in 2020 to 329 million in 2025, while total wine spending fell 22% from $94 billion to $74 billion, according to First Citizens Bank, formerly Silicon Valley Bank, which produces an annual State of the Wine Industry Report.
So in reality, the sales decline is entirely due to reduced production, not reduced consumption.
Europe, South America and the US over planted 10-15 years ago, driving down prices. They were expecting a boom in Chinese sales but in fact the Chinese didn’t really like the type of wine they produce.
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So in reality, the sales decline is entirely due to reduced production, not reduced consumption.
Europe, South America and the US over planted 10-15 years ago, driving down prices. They were expecting a boom in Chinese sales but in fact the Chinese didn’t really like the type of wine they produce.