U.S. Wineries Slash New Oak Barrel Orders by 28% Amid Smallest California Grape Crop in Nearly 20 Years

Winemakers across the United States are scaling back on new oak barrel purchases in 2025, according to the latest WineBusiness Monthly Barrel & Oak survey. The report, released this fall, shows that only 13% of surveyed wineries plan to increase their barrel orders this year, marking the lowest level in recent years. Meanwhile, 41% expect to buy the same number of barrels as last year, and 46% are planning to purchase fewer. Among those reducing their orders, the median decrease is 28%, with small wineries—those producing fewer than 5,000 cases annually—cutting back by more than 30%.

The decline in barrel purchases is closely tied to a projected drop in California’s winegrape crop, which is expected to be one of the smallest in nearly two decades. This reduction in grape supply has led many wineries to scale down production and, consequently, their need for new barrels. Regional differences are notable: Napa County wineries anticipate a 20% decrease in barrel buying, while those in other parts of California and east of the Rockies expect reductions as high as 50%.

Tariffs have also played a role in shaping purchasing decisions. Less than half of all wineries surveyed (44%) reported that tariffs affected their oak programs this year. The impact was most pronounced on California’s Central Coast (64%) and in Napa County (60%). Of those affected by tariffs, 41% paid more for the same number of barrels, while others opted to buy less oak or switched to more affordable or used barrels. In some cases, wineries mitigated costs by purchasing unsold barrels from the previous vintage.

The survey found that nearly 60% of wineries buying fewer barrels are making less wine this year, and about 20% are cutting overall winemaking costs. Some have unused barrels from last year’s harvest, and 10% are turning to oak alternatives such as chips or staves.

Despite the overall decline in barrel purchases, demand for oak barrels used in white wine production remains relatively strong. More than 80% of surveyed wineries use oak for white wines, and over 30% plan to increase their barrel purchases for this purpose—down from 41% last year but still higher than the overall rate for all wines. The Central Coast and Pacific Northwest regions show the highest increases in white wine barrel buying at nearly 40%. Larger wineries producing more than 500,000 cases annually are leading this trend.

French oak remains the preferred choice for white wine production, with over 90% of respondents using it. American and Eastern European oaks are less common but see higher usage among wineries east of the Rockies. Barrel alternatives are also gaining traction among mid-sized and small producers.

When selecting barrels for white wine, type of oak is the most important factor for 80% of respondents, followed by toast level and consistency. Some winemakers seek neutral barrels with minimal oak impact or experiment with acacia wood, especially for varietals like Sauvignon Blanc.

Tom Gendall, director of winemaking at Cline Family Cellars in Sonoma County, said his winery is increasing barrel purchases this year after a lighter-than-average harvest in 2024. He noted that tariffs will influence future cooperage decisions and that his team uses a mix of traditional barrels and alternatives to balance cost and achieve desired wine profiles. Gendall described his approach as increasingly nuanced, involving multiple oak sources and subtle adjustments each vintage.

Barrel buying typically peaks between February and April, with March being the most popular month for orders. However, more wineries are holding onto used red wine barrels longer than before; over 40% of Central Coast producers now use red wine barrels for more than a decade. In contrast, Napa County wineries tend to replace red wine barrels after four or five years.

For white wines, older barrels remain popular due to their neutral impact on flavor. Nearly a third of all surveyed wineries use white wine barrels for more than ten years—a trend especially strong in the Pacific Northwest.

When asked about the most valuable aspects of traditional oak aging, winemakers cited flavor (23%), micro-oxygenation (22%), mouthfeel (16%), and tannin structure (15%). Regional preferences vary: Napa County and Central Coast producers value tannin structure most highly; elsewhere in California flavor takes precedence; while micro-oxygenation is slightly favored in the Pacific Northwest and east of the Rockies.

Barrels continue to represent a significant portion of winemaking budgets even as sales slow and costs rise. The adoption of barrel alternatives has grown over two decades as quality improved but has not surged dramatically despite current economic pressures.

Nearly 80% of respondents said they are not increasing purchases of oak alternatives this year. Those who are cite ease of use and lower cost as primary reasons—especially among producers outside major California regions. Alternatives help some wineries produce more affordable wines or brands.

Dr. John Brewer, owner of Wyldewood Cellars in Kansas, relies heavily on oak alternatives like chips to keep prices low and production flexible. Brewer produces around 18,000 cases annually—mostly fruit wines—and says alternatives allow him to avoid costly barrel investments while maintaining quality control and protecting against spoilage.

Survey data show no clear favorite among alternative products for red wines; chips, blocks, staves and powders all see significant use. For white wines, chips and blocks dominate at nearly 60%, followed by staves.

Brewer credits alternatives with saving thousands of dollars annually while improving consistency and reducing risk. He encourages other small winery owners not to be bound by tradition when modern options can deliver similar results at lower cost.

The WineBusiness Monthly Barrels & Oak Study was conducted from July 9 to August 4, 2025. It surveyed decision-makers at U.S. wineries representing a broad range of sizes and regions out of a total universe of nearly 11,500 wineries nationwide. The findings provide insight into how economic pressures and changing production needs are reshaping American winemaking practices around oak use this year.