How the Drop in Wine Consumption Is Shaking Up Winery Suppliers—and What to Do About It

U.S. wine consumption has slowed, especially among younger generations, who are reaching for RTD cocktails or skipping alcohol altogether. Wineries are feeling the hit—but they’re not the only ones.

If you’re a business selling to wineries—barrels, packaging, tech, marketing, staffing, consulting—the ripple effect is hitting you, too.

Here's why it’s time for suppliers to stop working in silos and start working together.

1. Winery Budgets Are Tight. Really Tight!

Wineries are pulling back. Sales are slow, tasting room traffic is unpredictable, and “we’ll wait and see” has become the default response. Projects are stalled. Spending is cautious. And even the most promising pitches are getting stuck in limbo.

2. Everyone’s Chasing the Same Clients

Vendors are fighting for a piece of the same shrinking pie. Standing out is getting tougher. Pricing pressure is brutal. And even great offerings are getting lost in the noise.

3. Loyalty Isn’t What It Used to Be

Years of working together used to mean something. But now, longtime clients are asking for discounts, deferred payments, or walking away altogether—not out of disrespect, but out of necessity. It’s survival mode.

4. Innovation Is on Ice

Ironically, now’s the time wineries should be trying new things—better tech, smarter marketing, fresh customer engagement. But many are stuck in “play-it-safe” mode, too spooked to try something new unless it guarantees instant results.

5. Trade Shows Aren’t the Golden Ticket Anymore

Fewer wineries are showing up. Smaller teams. Tighter budgets. And for vendors, it’s getting harder to justify the cost of booths, travel, and time away. What used to be a reliable lead gen channel now feels like a gamble.

So What Now? Collaborate or Get Left Behind

You can try to outspend or out-hustle your way through this, but it's better to collaborate to sell to each other's customers and/or share marketing expenses.

Outsmart the market—with strategic partnerships. Teaming up with other vendors to create joint offerings, bundled services, shared webinars, or co-marketing campaigns gives wineries more value, more efficiency, and less decision fatigue.

This is how we stay relevant, keep the revenue flowing, and actually help wineries move forward.

Find Partnerships on the Vendor Collaboration Network

Ready to work smarter with other wine industry suppliers? Join the Vendor Collaboration Network on TheWineProGrapevine.

It’s where savvy vendors connect, collaborate, and build new ways to serve wineries together. Inside, you’ll:

• Meet other forward-thinking service providers

• Explore partnership and co-branding opportunities

• Share insights, trends, and lead referrals

• Spark ideas that actually move the needle

You don’t have to wait for the industry to bounce back. Build the kind of vendor ecosystem wineries want to work with—right now.