U.S. Winery Count Drops by 3% in 2025 as Closures Hit Nearly Every State

The U.S. wine industry experienced a notable contraction in 2025, with the total number of wineries falling by 3% according to a recent report from Wine Business Monthly. The data shows that the number of wineries dropped from 11,450 in 2025 to 11,107 at the start of 2026. This decline means that, on average, about one winery closed every day during 2025. The closures were widespread, affecting every state except Missouri, which maintained its count at 253 wineries. California, home to the largest number of wineries in the country, saw the biggest decrease. Pennsylvania recorded the smallest drop, going from 402 to 401 wineries.

The reduction in winery numbers is not limited to the United States. Canada also saw a decrease, with its total winery count falling from 860 in 2025 to 831 in 2026. British Columbia remains the Canadian province with the most wineries at 317, followed by Ontario with 284 and Quebec with 163. Wine production continues across all Canadian regions except the Yukon Territories.

Despite the high number of closures, most wine in the U.S. is produced by a small group of large companies. The top five U.S. wineries continue to dominate production volumes. Gallo remains the largest wine company in both the U.S. and globally by volume, producing an estimated 90 million cases in 2026. This figure is down from 94 million cases in 2025 but still higher than its output of 75 million cases in 2016. Gallo’s portfolio expanded after acquiring several brands from Constellation but has since shifted focus toward other beverages like High Noon vodka-based ready-to-drink products.

The Wine Group produced 43 million cases in 2026, up from 40 million in 2025 but down from its peak of 57.5 million cases in 2016. Trinchero Family Estates reported a decrease to 17 million cases from 19 million the previous year. Delicato Family Wines produced 16 million cases, slightly down from 16.3 million in 2025 but double its output from a decade ago. Deutsche Family Wine & Spirits produced an estimated 12 million cases in 2026, compared to 13 million last year.

Other major producers include Jackson Family Wines, Treasury Wine Estates, Ste Michelle Wine Estates, Bronco Wine Company, and WX Brands. Constellation Brands, once ranked as the world’s largest wine producer with over 50 million cases in 2016, now sits at #28 with just 750,000 cases produced as it shifts focus toward its Mexican beer portfolio while retaining some prestige wine brands like Robert Mondavi.

The industry’s challenges are not limited to production and closures. Distribution remains a significant bottleneck for U.S. wine producers. The three-tier system—producers, distributors, retailers—continues to be dominated by a few large firms. Southern Glazer’s remains the top national distributor, followed by Republic National despite its exit from California last year.

According to Wine Business Monthly’s analysis, there are now only about 1,061 unique wine distributors operating across the United States—a figure that is roughly one-third of what it was several decades ago. This concentration has been driven by declining demand and narrowing profit margins throughout the industry. Retailers are increasingly focused on stocking fewer products that guarantee steady sales, which forces distributors to narrow their offerings as well.

Industry leaders note that this is not a time for great variety or experimentation within distribution channels. Instead, both retailers and distributors are prioritizing products that consistently perform well in terms of sales and profitability.

These trends highlight ongoing shifts within the U.S. wine industry as it adapts to changing consumer preferences and market pressures. While large producers have resources to weather downturns and adjust strategies quickly, smaller wineries face greater risks amid tightening distribution networks and reduced demand for niche products. The data suggests that consolidation may continue as both producers and distributors seek stability in an evolving marketplace.