US wine drinkers trading down

In a surprising twist for the wine world, new data reveals that revenue from US wine sales fell faster than volume in early 2025, signalling a consumer shift toward better value. While people still crave quality, they’re less willing to pay inflated prices – especially for Cabernet Sauvignon, which is now dramatically oversupplied in regions like California, Washington and even parts of South America and Australia. White wines and sparkling wines under $20 are faring better than their red counterparts, according to SipSource. Meanwhile, many high-end reds are being sold at discounts, with wines once priced at $100+ now available for under $50 in some shops. Retailers are reporting strong sales among enthusiasts who know a deal when they see one.

SipSource Industry Analyst Dale Stratton notes that, with overproduction and growing competition, high-end producers can no longer rely on exclusivity or prestige alone to justify price tags. This glut is playing out in Napa, where big-money investments in premium estates have backfired as consumer interest wanes.

In Bordeaux, the difficult and mixed vintage is seeing prices drop by 30% with some wines being offered En Primeur at prices not seen for 16 years. As Stratton puts it: There’s good deals to be had. It’s a great time to be a wine consumer.