Full Breakdown
California Grape Growers Confront a Slumping Market
By Drooid · · How we work
Core Event
Harvest season in Lodi and the broader Central Valley is unfolding amid a sharp drop in wine demand. Growers such as Bill Berryhill of Berryhill Family Vineyards report that grapes on roughly 200 of his 500 acres have no buyers, forcing him to plan the removal of 50 acres after harvest. Allied Grape Growers estimates that about 25 % of the state’s vineyard acreage has been taken out of production, and roughly half of this year’s crop entered harvest without contracts—far below the typical 70-80 % contract rate.
Declining Wine Consumption and Its Drivers
Over the past five years, U.S. wine case sales fell 23 % from 427 million in 2020 to 329 million in 2025, and total spending dropped 22 % from $94 billion to $74 billion, according to First Citizens Bank’s State of the Wine Industry Report. The International Organization of Vine and Wine notes a 2.7 % global consumption decline in 2025 versus 2024 and a 14 % drop since 2018, driven by aging baby-boomers, younger consumers’ health and financial concerns, and competition from craft beer, canned cocktails, and cannabis. Tariffs have also reduced exports, especially to Canada, once the largest foreign buyer of American wine.
Economic Ripple Effects
The market contraction is reverberating beyond vineyards. With many growers operating at a loss, local businesses that depend on the wine supply chain face reduced revenue, amplifying the regional economic strain.
Official Statements & Responses
Rob McMillan, chief wine strategist at First Citizens Bank, argues that “the next step in the healing process is not only balancing supply and demand, but now actually figuring out what it is that the other consumers want,” signaling a shift toward market-driven diversification.
Verbatim Quotes
- “Unfortunately, we do not have a buyer for these grapes,” — Kyle Collins
- “That’s not getting into the pockets of the people doing the field labor, the farmworkers,” — Kyle Collins
- “The next step in the healing process is not only balancing supply and demand, but now actually figuring out what it is that the other consumers want,” — Rob McMillan, chief wine strategist at First Citizens Bank