California is currently in its grape harvest season, but many growers are facing difficulties in selling their grapes due to a significant drop in wine demand. Over the past five years, wine sales have decreased by more than 20%, leading to a decline in grape prices and prompting growers to take approximately 25% of the state's vineyards out of production. Growers are now faced with decisions on whether to harvest at a loss, leave grapes unpicked, or replace vineyards with more in-demand crops such as almonds, walnuts, pistachios, and olives.
Bill Berryhill, a third-generation grower from Berryhill Family Vineyards near Lodi, reported that he is unable to find buyers for grapes on 200 of his 500 acres and plans to remove 50 acres of vineyards after the harvest. He stated, "I will lose money for sure. It’s just a matter of how much. This has been a big loser for three years now."
At the peak of vineyard growth during the pandemic, California had nearly 600,000 acres of vineyards, but farmers have since removed or ceased growing wine grapes on about 25% of that land, according to Jeff Bitter, president of Allied Grape Growers. This year, about half of California's wine grape crop entered the harvest season without contracts with buyers, a significant increase from the typical 20-30% without contracts.
Bitter noted that the market remains depressed, making it challenging for growers to profit from wine grapes. Kyle Collins, an operations manager with Allied Grape Growers, mentioned that many vineyards are facing similar issues, stating, "Unfortunately, we do not have a buyer for these grapes."
The decline in wine sales has also impacted local businesses and farmworkers. Collins highlighted the economic trickle-down effect, stating, "That’s not getting into the pockets of the people doing the field labor, the farmworkers."
Historically, California's wine industry has produced over 80% of U.S. wine, benefiting from its unique geography and climate. However, wine sales peaked during the pandemic in 2021 but have since sharply declined, with projections indicating further decreases this year. According to First Citizens Bank, U.S. wine case sales fell from 427 million in 2020 to an estimated 329 million in 2025, while total wine spending dropped from $94 billion to $74 billion.
Global wine consumption has also decreased, with a 2.7% decline from 2024 to 2025 and a 14% drop from 2018, particularly in Europe and China. Factors contributing to this decline include changing drinking habits among younger consumers, increased competition from craft beverages, and tariffs affecting exports, especially to Canada.
Rob McMillan, chief wine strategist at First Citizens Bank, emphasized the need for the industry to balance supply and demand and understand consumer preferences. Despite the challenges, Berryhill remains committed to grape growing, stating, "I love growing grapes. It’s in the blood. Because I love them, I can weather this and I’ll fight through it."