People are drinking less wine

In the U.S., sales of wine cases declined 23% from 427 million in 2020 to 329 million in 2025, while total wine spending fell 22% from $94 billion to $74 billion
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California can’t export its excess inventory because wine consumption is down globally and it’s more expensive to produce in the U.S. than countries such as Argentina and Australia, Bitter said. In 2025, global wine consumption declined 2.7% from 2024 and 14% from 2018, with sharp declines in Europe and China, according to the International Organization of Vine and Wine.

There are a variety of forces driving the decline in wine sales. Baby boomers are aging out of the market while young people are drinking less alcohol due to health and financial concerns. Wine faces competition from craft beer, liquor and canned cocktails as well as cannabis.

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