California wine grape acreage declined nearly 1% in 2023, according to an annual government report, but the president of the California Association of Winegrape Growers expects a steep dropoff this year due to oversupply.

Natalie Collins said grape prices aren’t at sustainable levels, leaving growers to decide whether they can continue farming.

About 400,000 tons of grapes were left on the vine last season, she said. The USDA estimated California’s wine grape crush at 3.9 million tons in 2023, up 6.2% from the previous year.

“Coming out of last harvest, industry wide, we needed to remove about 50,000 to 100,000 acres of wine grapes to be in balance,” Collins said.

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Many growers have been unable to secure contracts this year, and that’s led to vineyard removals, especially in interior regions of California. Collins said an estimated 15,000 acres have been removed in the San Joaquin Valley.

Report details

The joint USDA and California Department of Food and Agriculture report showed wine grape acreage down 5,000 acres from the previous year to 610,000 acres.

The drop came from bearing vines. Non-bearing acreage was unchanged at 40,000.

Vines were removed from more than 13,000 acres in 2023, the report states. Of that figure, a significant amount was harvested in 2023 prior to being pulled out, and remains part of the estimated acreage until 2024. Cabernet sauvignon and Chardonnay continued to be the leading wine grape varieties in California.

Red wine varieties accounted for roughly 64% of acreage, according to a voluntary survey of 7,500 growers.

Detailed figures from the survey don’t match up entirely with the agencies’ overall estimates, as some growers didn’t participate and new vineyard owners planting grapes are difficult to detect.

Cab and Chardonnay

Cabernet sauvignon was the top variety with 95,638 acres and 3,374 non-bearing acres, according to the grower survey. It was second in area planted of any variety in 2023, with 602 acres.

Chardonnay, the top white wine, had 88,063 acres total, with 2,184 non-bearing. It was the top vine planted in 2023, with 703 acres, according to the grower survey.

Since 2016, new plantings have dropped 84% for red varieties and 50% for white.

A changing market

Collins said the oversupply stems in part from changing habits. Consumers are more health-conscious and aren’t drinking as much alcohol. Other beverage options also are taking market share.

Foreign wine also remains a problem, as domestic companies are buying export bulk wine rather than purchasing grapes locally, Collins said.

She said the industry needs to come together to promote wine, find more varieties that grow well and interest consumers, become more competitive and gain traction in foreign markets. The Golden State’s wine industry supports 422,000 jobs and has an economic impact of roughly $73 billion, she said.

“As an industry we’ve become part of California’s fabric,” Collins said.

California produces roughly 80% of wine in the United States, and is the fourth leading producer in the world.

The California Association of Winegrape Growers represents about 5,900 farmers.