Club Newsletter - May 2025
- Teresa Martain
- May 1
- 3 min read
Updated: Sep 6
New Report: San Diego Vintners Optimistic About Local Wine Industry Long Term as New Wineries Open Amid Softening of Sales in 2024 After Record-Highs in 2023
The San Diego County Vintners Association (SDCVA) has released the State of San Diego Wine Industry 2025 report today. This report sheds light on the current state and future outlook of the San Diego wine industry.
Sales Trends in 2024
After three years of steady growth following the pandemic, San Diego County experienced a slight decline in wine sales in 2024. The county generated $51.7 million in gross sales. This is a 5% decline from 2023, which saw sales reach $54.5 million. These figures are better than both national and state trends in wine sales. Notably, 43% of local vintners reported a positive year, outpacing the national sentiment measured by Silicon Valley Bank.
Industry Challenges
Vintners face numerous challenges in a complex market environment. Rising insurance costs, changing consumer preferences, and difficulties in workforce recruitment and retention present obstacles for many wineries. Nevertheless, the recent establishment of a San Diego County American Viticultural Area (AVA) helps clarify the geographical pedigree of wines. The opening of new wineries, a growing variety of wine grapes, and an increase in wine-related jobs signal resilience and optimism in the region.
Report Highlights
Wineries Growth: San Diego County is home to 172 active and planned wineries, marking a 3.6% increase from last year's count of 166. This reflects a steady reinvestment and sustained interest in the industry.
Job Growth: For the third consecutive year, new and expanding wineries led job growth in the sector. The estimated number of jobs rose to 829 in 2024, a 3% increase from 802 in the prior year.
New AVA Recognition: The newly designated San Luis Rey AVA, covering 97,733 acres, was formally approved in August 2024. This enables consumers to identify wines with unique geology, geography, or climate aspects, highlighting the strength of North County's wine grape growing.
Harvest Quality: The quality of the 2024 harvest was rated "excellent" by 33% of wineries, the highest rating since 2017. Moreover, 40% of wineries reported a "good" harvest.
Grape Variety Diversity: The number of unique grape varieties grown has increased to 57 in 2024, up from 48 in 2023. This highlights the region's diverse viticulture.
Market Adaptation: Wineries are adapting to changing market conditions through cost containment, growing direct-to-consumer sales, and diversifying their products.
Tasting Fees: Although overall sales declined, the median tasting fees remained lower than national averages. Most San Diego wineries charge $20, while the national average is $38, leaving room for growth in direct-to-consumer sales.
Voices from Local Leaders
California Representative Scott Peters noted, “San Diego’s winemaking industry makes valuable contributions to our local economy and culture as a world-class destination for tourists and locals." He emphasized that despite inflation, insurance increases, and changing consumer preferences, local wineries continue to thrive, new establishments are opening, and harvest conditions remain strong.
San Diego County Supervisor Jim Desmond stated, “San Diego County’s wine industry is vital to the county’s economy. Local wineries create jobs, attract tourists, and help families realize their dreams of entrepreneurship. I appreciate the San Diego County Vintners Association for its continued study of how the industry impacts our region.”
San Diego County Supervisor Joel Anderson expressed admiration for the creativity of local wineries during economic challenges. He said, “We are so impressed by the creativity of our local wineries amid economic challenges and changing consumer preferences. From growing jobs in our communities to increasing the varieties of wine grapes grown, our wine industry is resilient and an important part of our vibrant local economy.”
SDCVA President Mike Weber remarked, “San Diego County wine sales have seen record growth over the past three years. We see this slight decline in estimated sales as a product of an increasingly complex market environment and evolving preferences. The terrific thing about San Diego County vintners is their ability to creatively meet challenges to grow their businesses and produce award-winning wines.”
Conclusion: An Optimistic Future
In conclusion, the San Diego wine industry faces some challenges but remains optimistic. New wineries are opening, grape varieties are expanding, and job opportunities are increasing. The resiliency shown by local vintners highlights their commitment to adapting to a complex market. As the county continues to grow its wine offerings, both tourists and locals alike can expect a rich and diverse wine experience.
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