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
Learn the conditions farmers must meet to qualify for this new three-year tax deferral on farmland sales, how much it could save, and other details to consider.
David Hardin with the Indiana Soybean Alliance discusses USMEF’s push to open new global export markets for both meat and soy-based feed.
Some sustainability shifts are not particularly challenging and can be implemented with resources already available to farmers and ranchers on their operations.
With the U.S.–Vietnam agreement nearing signature, U.S. cotton, corn, and soybean exporters could lock in new demand lanes just as global supply shifts.
Jeramy Stephens with National Land Realty shares tips for fall and winter to guide landowners and farmers.
Rural businesses report softer sales, tougher hiring, and restrained investment — a backdrop that can pinch farm support capacity even if posted prices cool.

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:

A new maritime biofuels coalition aims to position ocean shipping as a significant growth market for U.S. crops and waste-derived fuels.
Larger operations maintain cost advantages, while softer equipment sales suggest producers are pacing machinery upgrades amid tighter margins.
Transportation access, legal disputes, and fertilizer freight costs will directly influence input pricing and grain movement in 2026.
Corn and wheat exports remain supportive, but weaker soybean demand — especially from China — continues to pressure oilseed markets.
China’s pullback is hitting core U.S. commodities hard, reshaping export expectations for soybeans, cotton, grains, and livestock.
Slower grain movement may pressure basis, but falling diesel prices could help offset transportation costs.