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California wine grape growers are entering harvest with roughly half the crop lacking buyer contracts, as U.S. wine sales have dropped more than 20% over five years. Growers have taken about a quarter of the state’s vineyard land out of production, and many are weighing whether to harvest at a loss or switch crops.
California wine grape growers are struggling to sell their fruit at harvest as U.S. wine demand continues a five-year slide, with about half of the state’s crop entering the season without buyer contracts and roughly a quarter of California’s vineyard land taken out of production, according to a KQED report. The slump is forcing some farmers to abandon or tear out vineyards their families have tended for generations and consider switching to crops such as almonds, pistachios and olives.
Wine sales have decreased by more than 20% over a five-year period, dragging down grape prices and pushing growers to remove or stop actively farming about 25% of California’s nearly 600,000 peak pandemic-era vineyard acres, said Jeff Bitter, president of Allied Grape Growers, which represents about 500 farmers statewide. In a typical year, 70 to 80% of the crop is sold under contract before harvest; this year, only about half is.
Third-generation grower Bill Berryhill, who owns Berryhill Family Vineyards near Lodi in the San Joaquin Valley, said he cannot find buyers for grapes on 200 of his 500 acres and plans to remove 50 acres of vines after harvest. “I will lose money for sure. It’s just a matter of how much,” said Berryhill, 68. “This has been a big loser for three years now.”
According to First Citizens Bank’s annual State of the Wine Industry Report, U.S. wine case sales fell 23%, from 427 million cases in 2020 to 329 million in 2025, while total spending dropped 22%, from $94 billion to $74 billion. Sales are expected to fall further this year.
Pressure on Growers, Workers and Wine Towns
California produces more than 80% of U.S. wine, so a sustained drop in grape demand ripples well beyond individual farms. Growers face a wrenching choice each season: harvest at a loss, leave healthy grapes to rot on the vine, or replant acreage with nuts and olives — decisions that reshape the landscape of wine regions like Lodi for years, since new vineyards take years to become productive.
The downturn is also hitting local economies. Kyle Collins, a Lodi-based operations manager with Allied Grape Growers, said losses are “not getting into the pockets of the people doing the field labor, the farmworkers” and have a trickle effect through local businesses that depend on the wine trade.
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From Pandemic Peak to Five-Year Decline
For decades, California’s wine industry grew steadily as Americans — particularly baby boomers — developed a taste for cabernet, zinfandel and chardonnay. Premium regions like Napa and Sonoma produced high-end vintages while the Central Valley supplied grapes for less expensive labels.
Wine sales peaked during the pandemic in 2021, when closed restaurants and restricted gatherings led people to stock up and drink more at home. The decline since then reflects several converging forces: baby boomers aging out of the market, younger consumers drinking less alcohol for health and financial reasons, and competition from craft beer, spirits, canned cocktails and cannabis. Exporting the surplus is not a viable escape valve — global consumption fell 2.7% in 2025 from 2024 and 14% from 2018, according to the International Organization of Vine and Wine, and U.S. production costs exceed those of competitors like Argentina and Australia, Bitter said.
“It’s just sickening… You raise a beautiful crop, and it’s really a nice vintage this year, and you drop it on the ground. It’s sad. All your work is just down the toilet.”
— Bill Berryhill, third-generation grower, Berryhill Family Vineyards
How Long the Oversupply Will Last
It is not yet clear how much further demand will fall or how quickly vineyard removals will bring supply back in line with sales. Bitter said demand is “still continuing to decline,” and First Citizens Bank’s data indicates sales are expected to drop again this year. Growers’ decisions on replanting — whether to nuts, olives or other crops — will vary by region and financing, and the long-term effect on communities built around wine production remains uncertain. Whether younger consumers’ drinking habits shift back toward wine as they age is also unknown.
Harvest Decisions and Vineyard Removals Ahead
Growers will finish harvest decisions in the coming weeks, choosing between selling uncontracted grapes at a loss — sometimes to buyers making concentrated syrup — abandoning fruit, or absorbing the cost of harvest. Berryhill plans to remove 50 acres of vines after this season, and further acreage reductions across the state are likely as farmers reassess profitability. Industry watchers will be looking to First Citizens Bank’s next State of the Wine Industry Report and harvest-season data for signs of whether the market has reached a bottom.
Key Questions
How much have U.S. wine sales fallen?
Wine case sales declined 23% from 427 million in 2020 to 329 million in 2025, and total spending fell 22% from $94 billion to $74 billion, according to First Citizens Bank’s State of the Wine Industry Report.
How much of California’s vineyard land has been taken out of production?
Growers have removed or stopped actively farming roughly 25% of the nearly 600,000 acres of vineyards California had at its pandemic-era peak, according to Allied Grape Growers president Jeff Bitter.
Why is wine demand dropping?
Cited factors include baby boomers aging out of the market, younger consumers drinking less alcohol for health and financial reasons, and competition from craft beer, spirits, canned cocktails and cannabis. Global wine consumption is also down, limiting export options.
What options do growers with unsold grapes have?
Growers can harvest at a loss, leave grapes unharvested, or — if buyers can be found — sell uncontracted grapes at a loss to producers of concentrated syrup. Some are replanting vineyards with almonds, walnuts, pistachios or olives.
Source: hn
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