California winegrowers are reducing planting areas due to falling demand

During the harvest period in California, many grape growers face difficulties in marketing their produce. Wine sales over a five-year period have decreased by more than 20%, which has led to a drop in grape prices. Due to the depressed state of the market, growers have taken out of service approximately a quarter of the state's vineyards, the total area of which reached nearly 600,000 acres (242,811 hectares) during the pandemic.

According to Jeff Bitter, president of the Allied Grape Growers association, this season about half of the wine grape harvest remains without buyer contracts, whereas in normal years this figure used to be 70–80%. Some farmers are forced to harvest at a loss, leave the berries on the vine, or switch to growing more in-demand crops, such as almonds, walnuts, pistachios, and olives.

According to data from First Citizens Bank (formerly Silicon Valley Bank), table wine sales in the US have decreased from 427 million cases in 2020 to 329 million in 2025, and total spending on wine has fallen from $94 billion to $74 billion. The drop in demand is driven by the aging of the Baby Boomer generation, a decrease in alcohol consumption among young people amid financial and health concerns, as well as competition from craft beer, spirits, cannabis, and canned cocktails. Additional pressure on exports is exerted by tariffs affecting shipments to Canada, as well as a global decline in wine consumption worldwide.