The 2026 BMO Wine Market Report shows that while the overall value of the US wine market increased by 3% in 2025, total wine volume fell again.
This highlights a growing gap between higher prices and weaker demand.
Wineries now face two major challenges: renewing consumer interest and managing excess inventory that continues to strain cash flow.
California, the heart of US wine production, is supplying noticeably less wine. Over the past decade, wine entering the US market from California has dropped by nearly 25%.
This decline reflects reduced vineyard plantings, a smaller harvest, and a shift away from producing surplus wine in response to softer demand.