California winegrape growers enter the 2025 harvest facing challenging market conditions. While contracted vineyards prepare to pick, many uncontracted growers are planning not to harvest. Unsold grapes listings remain high. The market faces persistent supply imbalances.

Favorable growing conditions have produced good fruit set and quality. The harvest remains on schedule inland and slightly delayed in coastal regions.

At the California Association of Winegrape Growers Annual Meeting, bw166/Gomberg, Fredrickson & Associates’ Jon Moramarco suggested wine sales may have reached or be near the bottom. This could indicate a supply-demand equilibrium. However, excess inventory at all levels will constrain recovery.

Sauvignon blanc demand and premium boxed wine sales show modest growth, but overall grape demand remains weak. The 2025 crush is projected to be under 2.5 million tons. This is down from 2.88 million in 2024. That is the lowest crush since 2004.

Growers are weighing vineyard management strategies. Options include sustaining quality fruit for contracted sales, reducing inputs on unsold acreage, or removing/grafting low-demand varieties. Allied Grape Growers continues to advocate for acreage reduction toward 500,000 bearing acres. This target may not be reached until 2027 or later.

Read more about the 2025 California winegrape outlook here.