German Wine’s Share in Domestic Market Declines Amid Rising Costs and Export Uncertainties

At the opening of the Moselweinbautage 2026 in Wittlich, Daniela Schmitt, Minister for Economic Affairs and Viticulture of Rhineland-Palatinate, addressed the current challenges facing the German wine industry. Schmitt called for a stronger market orientation, improved sales strategies, and reliable political frameworks to support wine producers. She emphasized that while the sector is under pressure due to difficult market conditions, it still holds strong prospects if decisive action is taken now.

Schmitt stated that the main goal must be to boost sales, stabilize markets, and help businesses prepare for the future. She warned that without increased sales, there can be no value creation, and without value creation, there is no future for wine producers. The minister highlighted that German wine needs to regain visibility in its domestic market through clear messaging, credible communication about origin, and outreach to new consumer groups. To achieve this, Rhineland-Palatinate is working with the German Wine Institute and regional wine marketing organizations to coordinate marketing efforts and increase their impact.

The minister pointed out that the tense market situation is the starting point for all further measures. Rising costs, changing consumer habits, and ongoing price pressures are affecting many producers. The state government aims to create conditions that restore planning security and economic prospects for businesses. Schmitt also appealed directly to consumers, noting that the share of German wines in domestic consumption is declining. She stressed that every purchase decision influences whether value creation remains in rural areas and whether cultural landscapes are preserved.

Export remains a key pillar for many producers along the Mosel, Saar, and Ruwer rivers. Schmitt referenced current international uncertainties, particularly regarding potential new tariffs in the United States as discussed by Donald Trump. She explained that tariffs artificially increase product prices and make market access more difficult for German winemakers. Therefore, she argued it is essential to diversify export markets, open up new sales channels, and reduce dependencies. According to Schmitt, diversification is not just a theoretical concept but a practical necessity for businesses.

A significant regulatory signal comes from Brussels with the conclusion of trilogue negotiations on the EU wine package at the end of 2025. The package includes simplified wine labeling rules, greater flexibility in crisis management tools, and strengthened measures for market stabilization and sales promotion. It also introduces vineyard grubbing as a support instrument and makes the planting authorization system more flexible. Schmitt stressed that these instruments must be developed together with the industry to ensure acceptance.

Schmitt called on the federal government to act quickly by adapting funding regulations and legal frameworks so that new instruments can be implemented effectively. She warned that tools existing only on paper do not help any business.

Looking ahead to reforms of the Common Agricultural Policy (CAP) from 2028 onward, Schmitt underlined the special status of viticulture as a unique agricultural sector. She said Rhineland-Palatinate will advocate for continued independent and appropriate consideration of viticulture within agricultural policy. She reaffirmed her commitment to the principle of origin as a guarantee of quality for German wines and called for this principle to be further strengthened in wine law.

At the end of her speech, Schmitt thanked the organizers and speakers at Moselweinbautage for their professional exchange. She expressed special gratitude to winemakers for their daily responsibility toward their businesses, cultural landscapes, and an industry that shapes Germany’s identity. Schmitt concluded by stating that policymakers have a duty to reliably support this path forward.