Wine Spending Rises While Consumption Keeps Sliding Lower

The BMO 2026 Wine Market Report describes the wine market’s current conditions as a reset, not a pause.

stock image_california grapes vineyard vines grape wine AdobeStock_299814078.jpeg

NASHVILLE, TENN. (RFD NEWS) — U.S. wine consumers spent more in 2025, but they bought less wine, showing another demand challenge for vineyards and wineries. The BMO 2026 Wine Market Report says consumer spending topped $115 billion, up 3 percent, while total wine volume declined again.

The report describes the market as a reset, not a pause. Higher prices are supporting the dollar’s overall value, but fewer consumers are drinking wine, and those who do are doing so less often. That leaves wineries trying to manage weaker demand, rising costs, and excess supply.

California remains central to the story. BMO says wine entering the U.S. market from California has fallen nearly 25 percent in less than a decade, reflecting vineyard pullbacks, a historically small harvest, and a shift away from chasing volume growth.

Direct-to-consumer sales are also under pressure. Winery shipments fell 15 percent by volume to 5.4 million cases, while shipment value dropped 6 percent to $3.7 billion. Nearly one-quarter of surveyed wineries reported losing a primary distributor.

Still, 71 percent of wineries surveyed expect the industry to stabilize or rebound within three years.

Farm-Level Takeaway: Wine grape growers and wineries face a market in which higher spending is masking weaker consumption and shifting distribution channels.
Tony St. James, RFD News Markets Specialist
Related Stories
Transporting pollinator colonies—primarily honey bee hives—is a major logistical operation in U.S. agriculture. Costs can vary widely depending on distance, fuel prices, labor, and timing.
Steven Snow with the U.S. Small Business Administration joined us to discuss tax relief for rural Americans and the long-term benefits of new provisions impacting farmers and small businesses.
A new partnership with the Montana Beef Council is bringing protein-packed refuel stations to high school sports tournaments across the state.
As budget hearings continue on Capitol Hill, policymakers focus on long-term solutions to stabilize the fertilizer market to support U.S. farmers.
Strong crush margins — now at multi-year highs — are encouraging processors to expand production.
Crop insurance remains essential as risks and costs rise.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Rural driving conditions increase the risk of serious collisions with animals.
Weak soybean sales and soft wheat demand contrast with solid corn export strength.
Charly Cummings with Superior Livestock Auction joined us to discuss today’s cattle offering, market demand, and what producers should watch as they plan upcoming sales.
David Fisher with the American Lamb Board joined us to discuss a new sustainability program designed to boost producer profitability while supporting stewardship practices.
Trade disputes can quickly reduce demand for key crops.
Input costs may stay elevated beyond tariff impacts.