California vineyard. Clipart Korea
Vineyards are burning in California, once a symbol of the global wine industry. As consumption plunges and inventories pile up, farmers unable to cover even the cost of harvesting grapes are plowing under or burning their fields, moving toward shutdown.
The U.S. wine market is recording its lowest sales volume in more than two decades, according to The New York Times on the 2nd. California’s grape harvest last year came to about 2.7 million tons, down 6.2% from the previous year and the lowest in 25 years, yet sales are still plummeting.
As a result, farmers are letting fruit rot in the fields or pulling out the vines themselves. The NYT described the case of Jason Smith, 57, who has run the winery Valley Farm Management in Soledad, California, for 51 years. His family settled in Monterey County in the early 1970s and supplied grapes to large wineries, but for several years now he has been unable to find buyers even after cutting prices. Smith ultimately sold off all his land and closed the family business. Where the tractor passed, the Pinot Noir vines he had tended his whole life were left uprooted.
According to the California Association of Winegrape Growers, about 38,000 acres of vineyards were removed over the course of 2025, an area equivalent to 21,000 soccer fields. That means 7% of all vineyards disappeared in a single year. In addition, more than 500,000 tons of grapes were left unharvested and abandoned in the fields for lack of buyers.
Behind this crisis lie the spread of a health-conscious consumer culture and shifting tastes among the younger generation. Young consumers regard traditional wine, with its elaborate drinking rituals and strong flavors, as an outdated beverage. As a result, convenient alcoholic options such as canned cocktails, hard seltzers and non-alcoholic beers are gaining popularity in place of traditional wine.
Because of this, high-proof, full-bodied red wine has been hit particularly hard. California’s 2025 red-grape processing fell 10.8% from the previous year, with sharp declines in major varieties such as Zinfandel and Pinot Noir. Last year, red wine production fell below white wine production for the first time in decades.
The decline of Pinot Noir is especially symbolic. Originally an unpopular variety because it is difficult to cultivate, this grape rose to popularity following the success of the 2004 film “Sideways,” and farmers rushed to pull out other varieties and plant Pinot Noir.
But as the craze subsided, it took a direct hit from oversupply, with production within California plunging 30% since 2021. Some farmers are replanting these plots with lighter white varieties such as Grüner Veltliner.
The prevailing view in the industry is that the slump will continue for some time. Steve Lohr, who has been in the wine business in the Monterey region for 54 years, said, “This is the most chaotic period I’ve ever seen.” Au Bon Climat, a renowned winery in Santa Barbara, California, has also decided to cut production amid trade conflicts and the economic downturn.
Trade disputes have added fuel to the sales slump. Some Canadian provinces banned sales of U.S.-made alcohol altogether in retaliation for U.S. tariffs. Industry experts expect a significant amount of grapes to be discarded during this fall’s harvest as well, and predict the market will not bottom out until several hundred more wineries close over the next two years.
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