The Smallest Grape Crush in 20 Years?

California’s wine industry is shifting. Early reports suggest the 2024 vintage could be the smallest since 2004, marking a turning point as the industry grapples with oversupply.

Despite the smaller harvest, Chardonnay remained the most crushed grape variety, making up 18% of the total tonnage. Cabernet Sauvignon followed at 15.3%. Meanwhile, raisin and table grape varieties used for wine accounted for just 0.7% and 1.8%, respectively.

But while supply is down, the real issue is pricing. A recent Silicon Valley Bank report highlights that oversupply is hitting lower-priced wines the hardest—bottles under $12 are seeing weaker demand.

On the other hand, premium wines are holding strong. High-end wineries have shown resilience, with some even increasing sales in 2024, according to SVB’s 2025 state of the industry report.

As California’s wine industry adjusts to shifting demand, the focus is on balancing production with evolving consumer preferences. Whether this signals a long-term trend or short-term correction, one thing is clear—quality wines continue finding their audience.

For more from the report: https://www.nass.usda.gov/Statistics_by_State/California/Publications/Specialty_and_Other_Releases/Grapes/Crush/Prelim/2024/2024_Preliminary_Grape_Crush_Report.pdf