Wine Prices Surge 8% in a Decade as Tariffs and Shifting Tastes Hit U.S. Market

Wine shoppers across the United States are facing higher prices and fewer choices this holiday season as new tariffs and shifting consumer habits reshape the market. Bottled wine prices have climbed nearly 20% over the past 25 years and 8% in the last decade, according to recent government data. This year, those increases are accelerating, driven by a combination of tariffs, inflation, climate change, and rising production costs.

At McCabes Wine & Spirits in Manhattan, owner Daniel Mesznik reports that prices are up between 5% and 12% compared to last year. He attributes these increases to a mix of factors, including tariffs on European Union imports, higher shipping fees, manufacturing expenses, and labor costs. Mesznik says his shop is trying to absorb as much of the cost as possible but admits that some price hikes are unavoidable. “We’re doing our best to keep those increases to a minimum for our guests,” he said. “But I think folks understand that this is the current reality.”

The tariffs in question stem from policies enacted during President Donald Trump’s administration, including a 15% tariff on many wines imported from Europe. These measures were intended to support domestic wine producers but have instead contributed to higher costs across the board. Importers like Elenteny Imports, which supplies wine to about 9,000 retailers and restaurants nationwide, say sales are down 13% year over year. CEO Alexi Cashen points to tariffs as a major factor behind the decline, noting that order volumes for imported wines are down nearly 30% so far this year.

The broader wine market is also feeling the effects of changing consumer preferences. According to IWSR, an alcohol data insights firm, wine consumption in the U.S. dropped 3% between 2019 and 2024 and is projected to fall another 4% by 2029. Marten Lodewijks, president of IWSR, explains that many drinkers are turning away from wine in favor of spirits and ready-to-drink cocktails, which tend to be less expensive and come in more convenient packaging.

Retailers are responding by adjusting their inventories. Mesznik’s shop has shifted some focus from wine to tequila and mezcal—spirits that are not subject to tariffs thanks to a free trade agreement with Mexico signed in 2018. He has increased his selection of agave-based spirits by 40%, moving them front and center in his store. Wine once accounted for about 70% of his annual sales; this year it will drop to around 65%, with agave spirits making up much of the difference.

The impact of tariffs is especially pronounced for mid-priced wines in the $40–$50 range, which Cashen says are struggling the most. Lower-priced bottles and high-end premium wines continue to sell well, reflecting broader economic trends where middle-tier products face the most pressure.

Import data from Elenteny shows sharp declines in orders from key European producers: French wine imports are down by half, while Italian imports have fallen by two-thirds compared to previous years. As a result, shoppers may notice smaller selections at their local stores. Mike Veseth, an economist who studies the wine industry, says many retailers and restaurants have streamlined their offerings due to falling demand for alcoholic beverages overall.

Adding further uncertainty is a pending Supreme Court decision on the legality of these tariffs. Veseth notes that this legal limbo makes it difficult for businesses to plan or invest confidently.

To cope with these challenges, some retailers are changing their buying strategies. Mesznik says he is ordering larger quantities from fewer wholesalers who offer better deals on bulk purchases. For example, he recently bought five or ten cases of an Argentine Pinot Noir on promotion instead of his usual one or three cases.

As Thanksgiving approaches and holiday celebrations begin, American consumers will likely feel these changes at checkout counters across the country. The combination of higher prices, slimmer selections, and evolving tastes is reshaping how Americans buy—and enjoy—their wine this season.