The Wine Industry is Suffering

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The Direct-to-Consumer Wine Shipping Report is an annual collaboration between Sovos ShipCompliant and WineBusiness Analytics, examining shipment trends from wineries to U.S. consumers.

The latest 2026 report indicates that the Direct to Consumer (DTC) wine shipping market continues to experience record drops in both the volume and value of DTC wine shipments. The DTC winery shipping channel contracted by 967,000 cases and more than $230 million in 2025, a 15% drop in volume and 6% decrease in value, respectively.  On the other hand, these results come as the channel saw an 11% increase in the average price per bottle shipped.

Here are some key takeaways from the 2026 report:

  • Largest wineries producing more than 500,000 cases annually saw a 23% decrease in the volume of wines shipped direct-to-consumer, greater than any other winery size category.
  • California shipments suffered a significant decline: The state experienced $142 million in lost shipments. Outside of Napa (whose wineries slightly outperformed other regions), the rest of California experienced a 32% drop in volume.
  • The least expensive wines experienced the largest loss in volume: Purchasers of lower-priced wines are buying less and dropping out of the DTC shipping channel in greater numbers than buyers of higher-priced wines. Higher-priced wines are capturing a larger percentage of the DTC shipping market, as there are fewer buyers of lower-priced bottles.
  • “Tasting room traffic is the engine that fuels DTC sales, especially when the market is under pressure, by motivating purchases, wine club memberships, and long-term customer relationships. Those fundamentals remain the foundation of a strong DtC shipping channel.”

As lovers of wine and very much  wine enthusiasts, we are very disturbed by the findings of this report. We don’t look at these numbers as analysts. We look at them as lovers of wine who love this industry. Wine is not just a product category; it’s culture, it’s agriculture, it’s place, it’s community. And we find that community among our friends and fellow wine enthusiasts, and also in our neighborhood wine stores.

Those of us who live on the Upper West Side of Manhattan, where there are a dozen wine shops in close walking distance, can personally attest to the fact that we meet all types of wine lovers at these impromptu wine tastings. There are so many times we attend a tasting, we like what we taste, and then we leave (after paying, of course) with at least one, sometimes several bottles of wine we’ve just tasted. We hope that all the components of the wine industry – wine makers, importers, distributors, resellers, restaurateurs, and sommeliers realize that they need to pay more attention to their consumers, and perhaps sponsor many more wine tastings at every level of the marketplace with the clear intent to increase the number of people of all ages to buy wine.