Oregon’s Wine Industry Is Showing Signs of Trouble

Oregon wine, like the rest of the industry, has hit a rough patch.

Total winegrape production in the Beaver State dropped by 25 percent in 2025 compared to the year prior, according to the newly released Oregon Vineyard and Winery Census Report. On top of that, the number of acres harvested decreased by 12 percent, with a yield-per-harvested acre decline of 15 percent.

Declining sales and exports were the main reasons for the sobering numbers, which were anticipated as Oregon rebounded from record figures earlier in the 2020s, Capital Press reported. Exports overall dropped by 29 percent, a figure that was largely driven by Canada, which saw Oregon wine shipments plummet by 83 percent. The country’s trade war with the U.S. has caused many provinces to ban the import of American alcohol; previously, Canada was the No. 1 export market for U.S. wine. The move has had such an effect on the market that the U.S. government may investigate the boycott. In total, Oregon wine case sales reached 4.9 million, a drop of 16 percent compared to 2024.

The survey, conducted by the Institute for Policy Research and Engagement at the University of Oregon for the Oregon Wine Board, tapped 129 producers in its research. 52 percent of growers said they left some grapes on the vine in 2025, due to a cancellation of contracts, and 23 percent said they removed vines last year. Growers altogether harvested 96,898 tons of winegrapes, compared to 129,739 tons in 2024. Pinot Noir led the charge, accounting for 58 percent of winegrape production. Wineries in Willamette Valley were responsible for 80 percent of the total grapes crushed, per the report. The number of vineyards in the Beaver State also saw a decline, shrinking by 77 to sit at a cool 1,460.

Oregon isn’t the only state that’s suffered over the last few years. As a result of low demand and a decline in sales, California producers ripped out nearly 40,000 acres of vines, according to a 2025 report from the California Association of Winegrape Growers (CAWG). Overall, Americans are drinking less than ever before, with booze consumption dropping in all categories, adding insult to injury.