German Wine Industry Faces Crisis as Vineyards and Wineries Risk Disappearing

German wine producers are facing a severe crisis, with up to 30 percent of vineyards and half of all wineries at risk of disappearing. The warning comes from the Zukunftsinitiative Deutscher Weinbau, an association founded in May by Thomas Schaurer, a winemaker in Rhineland-Palatinate. The group is urging German consumers to buy just one more bottle of domestic wine per year to help save the country’s wine industry.

Schaurer, who manages a 33-hectare estate, says he was driven to act after seeing colleagues struggle with depression and even suicidal thoughts due to financial pressures. He criticizes what he sees as the inaction of professional organizations and the dominance of older leaders unwilling to adapt. According to Schaurer, thousands of wineries are on the brink of bankruptcy, threatening not only businesses but also the rural landscapes shaped by vineyards.

Germany produces between 8 and 9 million hectoliters of wine annually, while consumption in 2024 reached an estimated 17.8 million hectoliters, according to the International Organisation of Vine and Wine (OIV). This means German wine covers less than half of domestic demand. Schaurer notes that German wines now account for only 42 percent of the market, down from previous years. He blames this decline on supermarket chains and discount retailers, who have slashed prices to as low as €0.99 per bottle—less than the price of bottled water.

The association Zukunftsinitiative Deutscher Weinbau now counts 164 active members and claims support from hundreds more winemaking families across Germany. Their campaign has prompted a response from established industry bodies. In late August, the Deutscher Weinbauverband (DWV), Germany’s main winegrowers’ association, acknowledged that up to 30 percent of vineyard area could be lost if current trends continue. While DWV disputes the claim that half of all wineries are at risk, it concedes that the situation is dramatic and calls for urgent political action.

DWV points to demographic changes and declining consumption as key factors behind the crisis. The organization welcomes recent policy proposals from Daniela Schmitt, Minister for Viticulture in Rhineland-Palatinate, including a new support package for 2025. However, DWV also calls for more flexible tools such as financial support for grubbing up vines, green harvesting, and distillation—measures that have been controversial in the past.

Unlike some agricultural groups, Zukunftsinitiative Deutscher Weinbau is not asking for new subsidies. Instead, it appeals directly to consumers’ sense of responsibility. The group argues that if every German resident bought just one extra bottle of local wine each year instead of an imported one, it would provide enough economic support for many family-run wineries to survive. Schaurer says he is not opposed to imported wines but believes Germans should prioritize their own producers when possible.

He also highlights the issue of fair pricing across Europe’s wine sector. “It’s not right that winemakers—whether they’re German, French, Italian or Spanish—are paid just 30 or 40 cents per liter,” he says. “In Germany, winemakers work between 60 and 90 hours a week and their wines are sold for less than a euro per bottle.”

A national awareness day held on August 30 did not achieve its goals due to limited preparation time, but Schaurer says his group will continue its efforts. He wants consumers to understand that their purchasing decisions affect working conditions in vineyards and cellars across Germany. He also calls for global changes in trade rules to protect both the environment and those who work the land.

The crisis in Germany’s wine sector reflects broader challenges facing European agriculture: falling prices, changing consumer habits, and increasing competition from imports. For many German winemakers, survival may depend on whether consumers are willing to pay a little more—and choose local wines over cheaper alternatives from abroad.