State of the 2024 Grape Growing Industry

​The grape growing industry is currently facing significant challenges. The market for wine grapes, particularly Cabernet Sauvignon, has become increasingly unstable, with spot market rates falling to levels that are difficult for many growers to sustain. Even those with contracts are finding it harder to secure favorable prices for their fruit. While the bulk wine market offers some support, it is also feeling the effects of this downturn.
 
This decline is reminiscent of the industry struggles in the 1980s when the grape-growing community faced similar economic pressures. During that time, high inflation and soaring interest rates, combined with an oversupply of grapes, created a challenging environment for growers. The economic recession of the early 1980s further reduced consumer spending on higher-priced wines, leading to a drop in grape prices and increased financial strain on vineyards. These conditions forced many growers to become more strategic and adaptive, much like the situation we find ourselves in today.
 
In anticipation of these challenges, the Napa Valley Grapegrowers (NVG) established the "Grape Market Task Force" in March 2024 to proactively address the current market conditions and support our members. This task force is focused on preparing our industry for difficult times by offering resources, guidance, and strategic connections. Our initiatives include hosting webinars on market trends, investing in paid SEO for the Napa Winegrape Market, connecting members with fruit brokers to explore all possible sales avenues, and developing a white paper with guidelines for those considering not harvesting due to economic constraints.
 
In these testing years, every grower must determine their "rock bottom" price—the minimum acceptable price for their grapes—before entering negotiations. While it may be tempting to turn to the bulk wine market, selling bulk wine may not yield better financial outcomes than selling grapes directly. For some growers, unfortunately, there will be no contract or viable options for selling their fruit, resulting in a significant loss for the year.
 
As an organization, we remain committed to supporting our members through this period. We will continue to advocate for the protection of our agricultural lands and the economic sustainability of our vineyards, as these are foundational to the future of Napa Valley. The NVG will continue to take a proactive approach, doing everything possible to help our members navigate these challenging times. As history has shown, our community's resilience and unwavering commitment to excellence will see us through to brighter days ahead.