LODI, Calif. (AP) — California wine growers are experiencing difficulties in selling their grapes as changing consumer preferences have led to a significant decrease in wine demand. Over the past five years, wine sales have dropped by more than 20%, resulting in lower prices for grapes and prompting growers to remove approximately 25% of the state's vineyards from production. Many growers are now faced with the decision to either 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, reported that he is unable to find buyers for grapes on 200 of his 500 acres (202 hectares). He intends to remove 50 acres (20 hectares) of vineyards after the harvest season concludes. "I will lose money for sure. It's just a matter of how much," Berryhill stated. He noted that this has been a financially challenging period for three consecutive years.
At the height of the pandemic, California had nearly 600,000 acres (242,811 hectares) of vineyards, but farmers have since removed or ceased production on about 25% of that land, according to Jeff Bitter, president of Allied Grape Growers, which represents around 500 farmers statewide. This year, approximately half of California's wine grape crop began the harvest season without contracts with buyers, a stark contrast to the typical year where 70 to 80% have contracts.
If growers are fortunate, they may sell their uncontracted grapes at a loss to buyers producing concentrated syrup. Despite the reduction in vineyard acreage, Bitter indicated that there is still an oversupply of grapes. "The market is just so depressed that it's difficult to grow them profitably," he said, adding that demand continues to decline.
Kyle Collins, an operations manager with Allied Grape Growers, remarked on the lack of buyers for ripe grapes in Lodi, highlighting that this issue affects many vineyards in the region. The decline in wine sales is also impacting local businesses and workers, as noted by Collins, who mentioned the economic trickle-down effect on field laborers and farmworkers.
The downturn represents a significant shift for California's wine industry, which produces over 80% of U.S. wine, benefiting from its unique geography and Mediterranean climate. Historically, the industry has seen steady growth, particularly as baby boomers developed a preference for various wine varietals.
Wine sales peaked during the pandemic in 2021, but have since sharply declined, with forecasts indicating further decreases this year. According to First Citizens Bank, U.S. wine case sales fell from 427 million in 2020 to 329 million in 2025, while total wine spending decreased from $94 billion to $74 billion.
California's excess inventory cannot be exported due to a global decline in wine consumption and higher production costs compared to countries like Argentina and Australia. The International Organization of Vine and Wine reported a 2.7% decline in global wine consumption from 2024 to 2025 and a 14% drop since 2018, particularly in Europe and China.
Several factors contribute to the decline in wine sales, including the aging baby boomer population and younger consumers drinking less alcohol for health and financial reasons. Wine also faces competition from craft beer, liquor, canned cocktails, and cannabis products.
Tariffs have further hindered exports, especially to Canada, which was previously the largest foreign buyer of American wine. Rob McMillan, chief wine strategist at First Citizens Bank, emphasized the need for the industry to balance supply and demand while understanding consumer preferences.
The industry hopes for a market recovery soon, but growers are currently facing substantial losses. Despite the challenges, Berryhill, whose family has been growing grapes for nearly a century, remains committed to the wine business. "I love growing grapes. It's in the blood," he said. "Because I love them, I can weather this and I'll fight through it."