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
The Midwest event will feature hundreds of horses and offer nationwide bidding access to participants
Nebraska Cattle Rancher Joe Van Newkirk shares his firsthand insight on devastating wildfires in the Sandhills, discusses challenges facing ranchers, long-term calf health concerns, and the recovery efforts underway.
Nebraska Cattlemen’s Association President Craig Uden shares the latest on Nebraska wildfire conditions, discusses challenges facing producers, and outlines relief efforts underway.
The ag trade deficit is narrowing, but export competition remains strong.
Agricultural groups warn that the deal could limit competition and raise transportation costs for farmers
The Trump Administration’s new rule limiting CDL renewals for immigrant truckers is seeing mixed reactions in agriculture. While some support the change, it is raising concerns about higher freight costs and impacts on U.S. grain export competitiveness.

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:

Expanding supplies are weighing on global coffee and cocoa prices.
Lewis Williamson with HTS Commodities discusses how tensions in the Middle East are impacting producer’s spring planting decisions.
Land values remain key to borrowing strength.
Mike Steenhoek with the Soy Transportation Coalition discusses supply chain disruptions, rising costs, and the potential impact on agriculture as farmers navigate ongoing global uncertainty.
Strong exports support ethanol margins and corn demand.
Export competition remains heavy despite solid trade.