Italian Sparkling Wine Producers Cut Output Amid Falling Sales and Global Market Pressures

Italian sparkling wine producers in the Asti region are reducing their output this year after facing a drop in sales both at home and abroad. The decision comes as Italy is expected to become the world’s largest wine producer in 2025, surpassing France, according to estimates released by Italian winemakers earlier this month. However, industry leaders say this achievement is not as positive as it seems.

Paolo Castelletti, secretary general of the Italian Wine Union, said that while production numbers are up, demand is falling, especially in key export markets like the United States. He explained that American baby boomers, who have traditionally been strong consumers of wine, are drinking less as they age. At the same time, U.S. tariffs on imported wines have made Italian bottles more expensive and less competitive, with some now costing more than $20 each—a price point that can deter buyers.

The Asti region in Piedmont, northern Italy, is known for its sweet, low-alcohol sparkling wines made from muscat grapes. These wines have long been popular in Russia as well, but sales there have dropped sharply since the start of the war in Ukraine. In 2023, about 17 million bottles were sold in Russia; that number fell to 12 million in 2024. Producers expect to sell only around 10 million bottles there in 2025.

Overall, Italian wine exports declined by 4% during the first five months of 2025. Castelletti said that producers need to focus more on quality than quantity to adapt to changing market conditions. While some French vineyards have responded to similar challenges by uprooting vines—a move encouraged by the European Commission—the Italian Wine Union prefers a flexible approach that adjusts production levels according to demand.

In Asti, local growers have decided to harvest fewer grapes this year. They are reducing yields from 10 to 9 tons of muscat per hectare. At Ca’ dei Mandorli, a family estate surrounded by vineyards, owner Stefano Ricagno worked with a French oenologist to analyze the first juice of the season. Under a hot sun, Indian workers finished picking grapes earlier than usual due to high temperatures during the summer. Ricagno noted that while they initially expected a large harvest, the heat limited yields and brought them closer to their revised targets.

Ricagno represents the sixth generation of his family in winemaking and currently leads the Asti appellation, which covers nearly 10,000 hectares of UNESCO-listed hills. Asti’s sparkling wines are known for their golden color and low alcohol content—around 7% for Asti and 5% for Moscato—with most bottles exported to the United States.

Sales figures reflect the current challenges: from 100 million bottles sold in 2023 to an expected 85 million in 2025. Stocks are rising as unsold wine accumulates. Ricagno said producers are waiting to see if global conflicts end and markets recover by 2026.

Other Italian regions are also cutting back on production. In Valpolicella, Veneto, winemakers have reduced volumes this year due to market uncertainty.

Not all producers agree with quotas or official designations. Francesco Pozzobon, a young grower near Nizza Monferrato outside Asti, has taken over abandoned vineyards and farms them without pesticides or chemicals. He plants clover and beans between rows of vines and accepts lower yields—about three tons per hectare—compared to his neighbors. Pozzobon believes that overproduction and poor-quality wine have hurt the industry and expects natural selection will favor those who focus on quality. He sells his artisanal wines at high prices as far away as China.

To adapt, leaders of the Asti appellation want their sparkling wines to be enjoyed as an aperitif rather than just with dessert—a tradition in Italy—hoping to appeal to consumers’ growing preference for lighter wines with lower alcohol content.