Under the Hood: Data Show U.S. Wine Industry Decline Is Accelerating
By Tim Carl
Today’s Under the Hood Spotlight
Welcome to Under the Hood, our exclusive Saturday series for Napa Valley Features paid subscribers.
Today’s Under the Hood Article Summary:
Newly released data show that after nearly a century of uneven but sustained growth, the U.S. wine industry is now facing a sharp and simultaneous decline in both total consumption and per-capita demand — a rare and troubling shift. Historically, demographic slack — more drinkers or more drinking per person — helped mask downturns, but that cushion has now vanished. Both demand and production are contracting in tandem, while global competition and new tariffs add further pressure. This is no longer a cyclical pause; it’s a structural unraveling that challenges the industry’s long-standing growth model.
Beyond today’s discussion, we’re also diving into the latest data from our readers’ polls and providing insights from our economic dashboard, covering local Napa Valley, U.S. and global markets.
“What We’re Reading” features excerpts from recent articles offering a range of perspectives on topics shaping our community and the wider world. A new section at the end, “Visuals That Caught Our Eye,” spotlights compelling charts and graphs that stood out this week.
“What We’re Reading”: Excerpts of the Day
“Distillers [or other alcohol producers] cannot legally operate in the United States without a TTB-approved permit, and no distilled spirits product can enter the marketplace without a TTB-approved label.” – from Distilled Spirits Council, in “DISCUS Statement on the Federal Government Shutdown,” Distilled Spirits Council of the United States.
“U.S. wine producers — approximately 95% of which are family-operated, small and mid-sized wineries — are collateral damage in a trade war that has nothing to do with them.” – from Wine Institute, in “CA Wines Canada export factsheet,” Wine Institute.
“Beginner scientists have less loyalty to prevailing assumptions, and they can take more intellectual freedom.” – from Raiyan Abdul Baten, in “Want to do disruptive science? Include more rookie researchers,” Nature.