Wineries across the US should be raising a glass to the latest Bank of Montreal (BOM) Wine Market Report. The 2026 findings, released last week, revealed that Americans are spending more than ever on keeping their cellars stocked, with the US wine industry reaching an all-time high of $115bn in sales in 2025. This represents a three percent increase over the last year, and, despite the pandemic, tariffs, and economic instability in between, a growth of $40bn compared to 2018.
While the US wine market remains the world’s largest, what is fascinating is that the report found total volume of wine sales decreased for a consecutive year, seeing a four percent decline from 2024, and 12 percent since 2018. The loss is more significant for wines from California, which has seen a decline of nearly 25 percent in wines entering the US market over the past decade.
The report acknowledges that this is not an issue affecting only the wine industry, but ‘the entire beverage alcohol sector continues to suffer a demand problem,’ write the authors, which they claim has been ‘exacerbated by layoffs, rising fuel prices, a new generation of anti-alcohol rhetoric, and political and economic instability.’
Yet, where consumers are buying less wine, they are spending more money on their labels of choice. While the report acknowledges some of the increase in total revenue is from price increases and inflation, it offers hope and optimism that there is still an appetite from the US drinker for quality bottles over quantity.
This shift in consumer attitudes becomes even more striking when comparing changing demographics. Americans may be drinking less overall, but when they do indulge, they are increasingly opting for better bottles rather than bingeing on volume.
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An emerging bright spot is the rise of private-label production. Nearly 20 percent of wineries producing fewer than 5,000 cases are now involved in creating private-label brands, allowing smaller producers to diversify revenue streams and appeal to consumers seeking accessible wines.
This trend is especially pronounced among younger drinkers, a demographic the wine industry has spent much of the last decade worrying about losing altogether. According to the report, 45 percent of those aged between 21 and 28 say they are ‘interested in drinking more wine’, while Millennials (currently aged 30 to 45 years old) – now the largest group of wine drinkers in the US, overtaking Boomers (62 to 80 years old) – are showing growing curiosity about premium wines and more experimental styles.
However, younger consumers are approaching alcohol very differently from previous generations. Many are ‘drinking less frequently, are more health-conscious, and face economic pressures’ that make wine seem like an expensive indulgence compared with beer, canned cocktails, or hard seltzers. The report notes that younger consumers increasingly view wine as ‘confusing’ or inaccessible, particularly when compared with ready-to-drink beverages that have exploded into a $14bn market.
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This is forcing wineries to rethink not only how they market wine, but what kind of wine they produce. Sweetened and flavored wines continue to grow rapidly, with flavored wine sales increasing 12 percent in 2025 to more than 35 million cases, while sparkling wines suffered a slight decline. At the same time, low-alcohol and ‘no sugar added’ wines are gaining traction as consumers become more calorie-conscious and wary of alcohol’s health effects.
Wine may no longer dominate drinking culture in the way it once did, but Americans are still willing to pay for quality, experience, and craftsmanship. And for an industry often accused of resisting change, the BOM report suggests adaptation may finally be underway.
