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
A late-season freeze in northeast Louisiana has forced farmers to replant thousands of corn acres, adding costs, straining seed supplies, and raising concerns about shifting to soybeans.
March 15 of each year is the application deadline for the Pima Cotton Trust, and March 1 of each year is the application deadline for the Wool Trust. The law mandates trust payments by April 15. More information about these programs is available at www.fas.usda.gov/programs.
The cast of “Farmer Wants a Wife” joined us to share their stories and preview Season 4 of the series, which premieres April 21 on FOX.
Lane Howard and Adam Andrews with the National Corn Growers Association joined us in the studio discuss EPA’s approval of summer E15 sales, ongoing fuel market concerns, and the industry’s push for a long-term biofuels solution for farmers.
Alan Bjerga with the National Milk Producers Federation discusses how stewardship is driving efficiency, profitability, and competitiveness in the dairy industry.
Texas continues to play a critical role in the U.S. beef supply chain, with both cow-calf operations and feedlots contributing significantly to national production.

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:

Rising costs and prices are shifting acreage toward soybeans. Most fertilizer prices are up double digits from this time last year, with Urea seeing the largest gains.
Hiring may ease slightly, but labor shortages remain persistent.
Price volatility is driving shifts in demand and supply innovation.
RealAg Radio host Shaun Haney explains shifting global trade dynamics and what they could mean for agriculture and energy markets.
Rising diesel and energy costs are squeezing farmers and rural communities, increasing production expenses and raising concerns about consumer demand for beef even as U.S. meat exports regain the Australian market.
Rising input costs may squeeze margins and shift planting decisions. Scott Metzger with the American Soybean Association discusses fertilizer market pressures and what is at stake for farmers as planting season ramps up.