Unified Wine and Grape Symposium Report: Another 40,000 California vineyard acres may be pulled in 2026 as wine consumption continues to drop
Another 40,000 California vineyard acres should be pulled in 2026 to balance grape supply and demand as wine consumption hits historic lows. That’s even though there has been a net loss of almost 40,000 vineyard acres over the past three years.
“The industry has not yet adjusted production sufficiently,” Jeff Bitter, president of Allied Grape Growers (AGG), a statewide cooperative of 500 winegrape growers, said on Jan. 28 during the 2026 Unified Wine and Grape Symposium in Sacramento.
A lot of people in the industry are hurting, Bitter and other speakers said at the Jan. 27-29 symposium attended by about 9,000 industry members.
“Industry is going through a corrective time where all participants have challenges in the wake of declining shipments and stagnant sales,” Bitter said.
Altogether, there were 477,500 vineyard acres — bearing and non-bearing — in 2025 in California, according to Land IQ, a company tasked by the California Association of Winegrape Growers, a statewide trade association, to analyze vineyard acreage in the Golden State.
As of 2024, Land IQ estimated there were 515,615 vineyard acres in the state. AGG and the California Department of Food and Agriculture, in a separate survey, estimated there were 590,00 vineyard acres statewide.
In Napa County, an estimated 20 percent of the fruit was not harvested in 2025 even though more than 3,100 acres were removed between October 2024 and August 2025.
“I am sure an amount equal or higher to that will be removed in 2026,” Bitter said after the symposium, referring to the vineyard acres expected to be pulled in Napa County. Bitter anticipated 5 percent of Napa’s acreage will be removed before the 2026 harvest.
As of August, there were more than 42,300 vineyard acres in Napa County, according to Land IQ.
Average monthly shipments of California wine by producers have decreased significantly over the past few years, Bitter noted, citing data by analyst Jon Moramarco of BW 166 and the Gomberg Fredrikson Report.
Wineries shipped 55 million cases per month in 2015, according to the data. They shipped 46 million cases per month in 2024, and an estimated 43 million cases in 2025.
California wineries still need to reduce inventories but “ground has been made with two ‘tiny’ crushes in a row,” Bitter said.
“If 18 months of inventory is a comfortable position, we went from 3.7 months [of excess inventory] in 2023, to 2.3 months in 2024 to now just an excess estimated at probably about one month of inventory following the (2025) crush,” Bitter said.
This means an excess of 250,000 to 300,000 tons of winegrapes statewide.
Grape buyers are considering wine inventory data before they decide to buy grapes.
Turrentine Brokerage president/partner Steve Fredricks and others said wine consumption is declining globally, due to a host of factors, including demographic shifts, aging populations, competing products and efforts to encourage people drink less alcohol.
Everyone faces a challenging financial climate, forcing the industry to make more just-in-time planning decisions, Fredricks said. Companies avoid borrowing money or making investments. Fewer accounts are selling wine. Restaurants’ wine lists are smaller than they used to be, Fredricks said.
Like wineries, grape growers also face challenging financial markets, Fredricks said.
Buyers are looking for current vintage wines, either 2024 or 2025, Fredricks said, however, half of the inventory is older vintage wine.
Clients include private label buyers who want to produce lower-priced wine brands, he said.
