Midwest Wineries Face Declining Wine Sales as Shifting Consumer Habits Reshape Industry

In northern Iowa, the grape harvest at Soldier Creek Winery is underway. The morning sun shines over rows of vines surrounded by cornfields as a mechanical harvester shakes ripe grapes from the trellises. Anne Zwink, the winemaker and president of the Iowa Wine Growers Association, watches the process with a cup of coffee in hand. This year’s harvest is smaller than usual. The vines are still recovering from years of drought, and some acres have been damaged by herbicide drift from neighboring farms. But for Zwink and many other winemakers in the Midwest, the biggest challenge is not in the vineyard—it’s in the tasting room.

“We have a really hard cash flow problem right now where we have a lot of money in the tanks, and it’s hard to actually sell the product that’s in the tank,” Zwink said.

Across the United States, wine consumption has been falling since 2018. According to industry data, U.S. wine volumes dropped by 15% between 2019 and 2024. The decline is most pronounced in states like Florida, New York, and California, where many consumers are switching to spirits and ready-to-drink beverages such as canned cocktails and hard seltzers. A recent Gallup poll found that only 54% of American adults now report drinking alcohol—the lowest rate since Gallup began tracking this data in 1939. Those who do drink say they are consuming less than before.

Health concerns are driving much of this change. In 2016, just over a quarter of Americans believed that “one or two drinks a day” could negatively affect health; by 2025, that number had doubled to more than half. The shift is especially strong among younger adults aged 18 to 35.

The impact on winemakers has been significant. In California and Washington, some grape growers have responded to canceled contracts and weak demand by pulling out their least productive vineyards. In Iowa, Randall Vos of Iowa State University Extension says there is now more supply than demand for local grapes. “It’s a challenge,” Vos said. “Do you ride it out and hope things get better, or do you pull out that vineyard? That’s a long-term decision.” Some Iowa wineries have already closed their doors.

But not all regions are feeling the same effects. In Kentucky, Tennessee, and North Dakota, per capita wine consumption actually increased between 2019 and 2024. And in places where wine tourism is strong—such as Texas Hill Country, southern Illinois, and Michigan’s Great Lakes region—wineries are finding ways to weather the downturn.

In Texas, tourism plays a major role in supporting local wineries. Michael Cook, a viticulturist with Texas A&M AgriLife Extension Service, says that while overall wine sales have declined since 2019, sales of higher-priced wines have increased. “Things are slowing down right now, but there’s hope that this slump will bounce back very quickly,” Cook said.

Texas has eight federally recognized wine-growing regions known as American Viticultural Areas (AVAs). The Texas Hill Country AVA alone hosts more than 120 wineries and draws visitors from nearby cities like Austin and San Antonio for vineyard tours, live music events, festivals, and on-site dining experiences. Most Texas wineries grow some grapes themselves but rely heavily on fruit from the High Plains region in the northwest part of the state.

Cook says Texas winemakers are not trying to imitate California or European styles but instead focus on varieties suited to local conditions—such as Tempranillo from Spain or Dolcetto from Italy—alongside traditional grapes like Cabernet Sauvignon and Merlot.

Southern Illinois is also seeing growth tied to tourism. Ryan Phelps runs Clad and Cordon winery in the Shawnee Hills AVA and serves as president of the Illinois Grape Growers and Vintners Alliance. He says visitors come for hiking, fishing, and outdoor activities as much as for wine tasting. Many travel from St. Louis, Chicago, Nashville, or Tennessee for weekend getaways.

“I feel extremely optimistic about the next five years,” Phelps said. His winery is planting more vines to meet demand but also diversifying its offerings with hard cider production, live music events, event spaces for rent, and even an on-site lake for fishing.

In Michigan’s Great Lakes region, Dan McCole of Michigan State University says wineries continue to open despite national trends. Tourism remains a key driver: more than 130 million people visited Michigan in 2024 alone. While there were concerns about fewer Canadian tourists due to strained relations between the two countries, McCole says U.S. visitors have filled much of that gap.

McCole’s research shows that people visit wineries not just for wine but for unique experiences—something new to do with friends or family during their leisure time. As a result, many Michigan wineries offer creative events or activities beyond traditional tastings.

Back at Soldier Creek Winery in Iowa, Anne Zwink says her family business relies heavily on local customers from nearby counties rather than tourists passing through. To keep people coming back—and attract new visitors—they host live music nights, bingo games, painting classes paired with wine tastings (“paint and sips”), and other special events.

“We’re finding that we have to constantly be creating something new in order to keep interest there and follow the trends of what consumers want,” Zwink said.

That means experimenting with new grape varieties suited to Iowa’s climate or producing cider alongside traditional wines. Some wineries are even looking into canning their products to appeal to younger drinkers who prefer portable options.

For winemakers across America’s Heartland, adapting to changing consumer habits is now essential for survival—even if it means rethinking what it means to be a winery in today’s market.