California Wine Grape Growers Face Unprecedented Glut as US Wine Sales Drop 23% Since 2020

California grape growers are removing vineyards at an accelerating pace as US wine sales plummet, with case volumes falling 23% from 427 million in 2020 to 329 million in 2025 and spending down 22% to $74 billion, according to First Citizens Bank. Roughly 25% of the state's nearly 600,000 vineyard acres have been removed or taken out of active production, said Jeff Bitter, president of Allied Grape Growers. About half of this year's wine grape crop entered harvest without buyer contracts, compared with 70-80% in a typical year. Global wine consumption declined 2.7% in 2025 from 2024 and 14% from 2018, per the International Organization of Vine and Wine. Growers cite shifting demographics, competition from craft beer, cocktails and cannabis, and tariffs that have curtailed exports to Canada. Some are replacing vineyards with almonds, walnuts, pistachios and olives.