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California Farmers Struggle As Wine Grape Demand Continues To Fall

In Lodi, third-generation farmer Bill Berryhill has been unable to secure buyers for grapes from 200 of his 500 acres, forcing him to leave healthy fruit unused.

,   and  TIPP Staff
2 min read
California farmers struggle to sell grapes as wine demand drops. Pic via(@ocregister)

California grape growers are facing mounting losses as declining wine consumption leaves farmers struggling to find buyers for their crops.

In Lodi, third-generation farmer Bill Berryhill has been unable to secure buyers for grapes from 200 of his 500 acres, forcing him to leave healthy fruit unused.

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U.S. wine sales have fallen sharply since 2020, with spending down 22% to $74 billion, according to First Citizens Bank. Younger consumers are increasingly choosing beer, spirits and seltzers instead of wine, contributing to weaker demand.

Globally, wine consumption fell 2.7% in 2025 and is down 14% since 2018, according to the International Organization of Vine and Wine.

The downturn is reshaping California’s wine industry. About 25% of the state’s 600,000 vineyard acres have already been removed, while roughly half of this year’s wine grape crop entered harvest without buyer contracts.

Growers and local businesses are also warning of wider economic effects as reduced production threatens farm jobs and regional income.

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