German winemakers confront historic crisis as production costs soar and demand falls

German winemakers are facing one of the most difficult periods in their history, despite expectations for an outstanding 2025 vintage. The harvest this year is progressing quickly and experts predict wines of exceptional quality. However, the industry is struggling with a deep crisis caused by rising production costs, declining wine consumption, uncertain consumers, and tariffs imposed by the United States.

The price for bulk wine has dropped to as low as 30 cents per liter. Many wineries are refusing to accept all the grapes offered by growers, and some grapes may be left unharvested this year. Nearly one in three wine businesses in Germany is reportedly at risk of closing. This situation threatens not only the livelihoods of winemakers but also the scenic landscapes and tourism attractions along steep slopes in regions like the Rhine and Mosel.

Daniela Schmitt, Minister for Economic Affairs in Rhineland-Palatinate—the state with the largest share of German vineyards—warns that these iconic landscapes could be lost if the crisis continues. She points out that many of the businesses now struggling failed to adapt over the years.

Steffen Christmann, president of the Association of German Prädikat Wine Estates (VDP), says that the problems stem from decades of missed opportunities within the industry. He notes that those most affected today were often resistant to change in the past. Christmann believes that while politics play a role, much of the responsibility lies with the industry itself. He recalls that as early as 2003, the German Winegrowers’ Association launched a campaign called “Wine Vision 2020” to build strong brands and restore German wine’s global reputation. According to Christmann, little progress was made.

Christmann argues that German wine needs a clear and internationally recognizable profile. While offering a wide variety of wines may appeal to domestic customers, he says that export markets require focus and consistency. He believes that increasing exports is essential for recovery, but acknowledges that it will take years to see results.

Minister Schmitt is working on measures to help winemakers find new markets abroad, such as Japan and India. Rhineland-Palatinate has prepared a support package for its wine sector, which includes more than three million euros annually for marketing campaigns and joint advertising efforts. Schmitt also calls on the federal government in Berlin to take action, criticizing what she describes as political stagnation on wine policy at the national level.

Christian Schwörer, secretary general of the German Winegrowers’ Association, echoes these concerns. He says that while European Union policies offer useful tools for supporting winemakers, implementation in Germany has been slow. The association advocates for temporary planting stops, expanded sales promotion programs, and new regulations for replanting vineyards. They also suggest that practices like green harvesting—removing unripe grapes in summer to reduce yields—should no longer be taboo.

Schmitt and her counterpart from Hesse plan to meet with other state ministers involved in wine production later this year in the Rheingau region to discuss possible solutions.

Another challenge is declining domestic demand for German wine. Less than half of all wine consumed in Germany comes from local producers—a share that has been falling steadily. In 2024, domestic wines accounted for just 41 percent of purchases, down from 45 percent three years earlier. Price sensitivity among German consumers has led many to choose cheaper imported wines instead.

Industry representatives say that even in hotels, restaurants, theaters, and opera houses across Germany, local wines are underrepresented—especially red wines and sparkling wines. French and Italian wines often dominate these venues.

Minister Schmitt urges consumers to support local winemakers by choosing regional products when possible. She points out that every bottle purchased helps determine the future of viticulture in Germany. For example, she encourages visitors hiking through regions like the Ahr Valley to buy local wines rather than imported ones.

Schmitt also disagrees with recent recommendations from Germany’s Nutrition Society advising people not to drink alcohol at all. She insists that wine remains an important part of cultural heritage in Rhineland-Palatinate and should be enjoyed responsibly.

The crisis facing German winemakers is complex and rooted in both economic pressures and long-term structural issues within the industry. While this year’s vintage may be excellent, many producers worry about their future unless significant changes are made at both industry and policy levels.