Swiss Grape Growers Lose Major Buyer as Domestic Wine Demand Plummets

Swiss wine producers are facing a critical moment as declining domestic consumption, overproduction, and fierce international competition threaten the future of the country’s vineyards. Although Switzerland is not among the world’s leading wine producers, its situation highlights many of the challenges currently affecting the global wine industry. Olivier Mark, president of the Interprofessional Community of Vaud Wines, has spoken out about the urgent need for strategic decisions to ensure the survival of Swiss viticulture.

The crisis became more visible at the end of January when a major Swiss wine buyer sent a letter to around 250 grape growers, informing them that all or part of their harvest would not be purchased this year. Many of these growers rely entirely on their vineyards for income. According to Mark, this letter quantified a problem that had been growing since last summer but was difficult to measure until now. The first warning came in spring when the Federal Office for Agriculture published unprecedented figures showing a sharp drop in wine consumption. This confirmed that the sector was facing a significant issue, though precise data was lacking.

The announcement by Schenk, one of Switzerland’s largest wine companies, served as a barometer for falling demand in the domestic market. Based on Schenk’s market share, Mark estimates that at least 10% of this year’s grape harvest will go unsold in the coming autumn. In response, industry representatives have increased their outreach to both media and government officials in recent weeks, seeking solutions before the next harvest.

Mark outlined three possible measures to address the crisis, with one key proposal requiring federal action. He suggests that within existing duty-free import quotas negotiated under international agreements, importers should be required to purchase a certain amount of Swiss wine in order to benefit from customs exemptions. Mark emphasizes that this would not challenge the overall quotas set by international agreements but would help support local producers.

This federal measure could be combined with two cantonal initiatives: increased funding for wine promotion and financial support for uprooting and converting vineyards to other crops or biodiversity-friendly uses. The latter could include planting flower meadows or other landscape-enhancing projects. Mark has proposed involving landscape architecture schools to develop new approaches that would benefit both biodiversity and the visual appeal of vineyard regions.

Unlike some countries where vineyard removal is widespread and often indiscriminate, Swiss wine authorities are focusing on preserving what they call the “heart of the vineyard”—historic terraces and heritage sites considered most promising for future production. The industry plans to provide growers with maps identifying these priority areas and recommend avoiding uprooting vines there whenever possible. Financial incentives for voluntary participation are still under negotiation.

However, Mark warns that these support measures could backfire if import regulations are not also addressed. Reducing domestic production without limiting imports would only increase foreign wines’ market share—already accounting for two-thirds of Swiss wine consumption—and further erode local producers’ viability.

The debate over trade protectionism has gained new relevance amid shifting global economic conditions. Mark notes that while Switzerland’s high production costs have long raised concerns about unfair competition, recent geopolitical developments have made protective measures more politically feasible than before. He points out that while securing federal funding has become more difficult, introducing targeted protectionist policies now seems possible given current circumstances.

Mark is clear that declining consumption is a major driver behind the market’s deterioration and insists that Swiss producers should not bear all the consequences alone. He stresses that their goal is not to close Switzerland’s borders to quality European wines but to ensure fair conditions for local growers. “If we don’t act now, Swiss viticulture will die,” he says. The debate ultimately centers on how much value Switzerland places on preserving its living wine heritage in an increasingly competitive world market.