Europe’s vineyards shrink

California has recorded its smallest grape harvest in decades, but Europe is retrenching too, with vineyard areas shrinking across France, Germany and Switzerland as producers respond to falling demand and rising costs.

France is taking the most dramatic action, with plans to uproot nearly 28,000 hectares of vines under a €130 million government scheme. Much of the reduction is focused on red varieties in regions such as Occitanie and Bordeaux, where shifting consumer tastes and declining sales have hit growers hardest. Around a third of applicants intend to leave the industry entirely, while others are scaling back to more commercially viable plots.

In Germany, Baden-Württemberg’s vineyard area fell 3% in 2025, with growers abandoning unprofitable land. Switzerland faces similar pressures, with up to 10% of vineyards at risk despite a strong harvest, as weak sales and rising inventories force difficult decisions.

The latest California Preliminary Grape Crush Report shows that the 2025 wine grape harvest was notably smaller than recent years. Total crushed tonnage in California was around 2.7 million tons, down about 6% from 2024 and the lowest in over two decades. Red grape tonnage fell more sharply than white, reflecting shifting consumer preferences.

According to the report, lower domestic wine consumption and high bulk inventories continue to challenge growers and wineries alike, prompting vineyard removals and cautious optimism about future market stability.