California Wine Grape Crush Falls to Lowest Level Since 1999

California’s wine grape crush fell to 2.62 million metric tons in 2025, the lowest level since 1999, according to Winescape’s spring 2026 report from Terrain Ag, as excess inventories continued to weigh on grape demand and shape buying decisions across the state’s wine industry.

The report said the smaller crush reflected a slight decline from the previous year and came after a season marked by uneven weather conditions that affected both yield and fruit quality in different wine regions. Even with the lower volume, the market remained under pressure because wineries were still working through large inventories, limiting how aggressively they were willing to buy grapes for the 2026 season.

That combination has pushed buyers to be more selective, with a stronger focus on fruit quality and on wines that can compete in a crowded market. Producers, meanwhile, are facing a difficult balance: they need to move grapes into a market with ample supply of finished wine, but they also need to protect prices and preserve value after several seasons of shifting demand.

The report suggests that inventory levels will remain a central factor in California grape pricing this year. When wineries hold more wine than they need, they tend to reduce purchases of new grapes or negotiate harder on price, which can ripple through vineyard economics from the Central Valley to coastal appellations. For growers, that means the 2026 buying season may depend less on total crop size than on how quickly wineries can clear existing stock.

Winescape said the market is increasingly rewarding grapes that meet higher quality standards, a sign that wineries are trying to position themselves for consumers who are more selective and for competition from foreign producers. That shift could leave lower-tier fruit facing weaker demand even as premium grapes retain more leverage.

The report did not point to an immediate rebound in overall demand. Instead, it described an industry still adjusting to the effects of inventory overhang, variable weather and cautious purchasing, all of which are shaping how much California wineries are willing to pay for grapes this year.