Opportunities for Northeast Wine and Grape Producers to Drive Growth in 2026

Farm Credit East recently hosted a webinar with Andrew Adams of WineBusiness Analytics, providing insights for the wine and grape industry in 2026. While overall U.S. wine market growth is stagnant, Northeast winery growth remains steady creating opportunities for the region’s producers. Following are the key takeaways from this webinar.

U.S. Wine Market Performance

Based on data from previous years, overall U.S. wine market growth is stagnant due to volume continuously declining despite modest value increases. Domestic table wines dropped by 4% in volume, while sparkling and flavored wines are outperforming. Packaged imports and premium wines show relative strength.

Wine producers are facing a few notable challenges, including shrinking retail shelf space for wine resulting from distributor consolidation and competition from ready-to-drink cocktails. U.S. wine exports to Canada have also dropped significantly from 35% to 22% of all U.S. wine exports as a result of federal policy changes. Additionally, declining wine consumption by the boomer generation and slower adoption by younger generations, who as a group are abstaining from any alcohol consumption, are creating a difficult market for producers across the country, both in wholesale and direct to consumer markets.

Regional Insights

Despite wine industry challenges, the growth in number of wineries in the Northeast remains steady. New York leads this growth with 457 wineries, up 19% since 2016. While, tasting room visitation is stronger east of the Rockies when compared to West Coast regions,  Northeast growth is still relatively flat. Average price points in the Northeast are trending higher, reflecting premiumization, and are helping to offset reduction in tasting room visitation and sales volume.

When looking at the grape market specifically, the West Coast faces oversupply and vineyard removals. The East Coast has more balanced supply and demand dynamics. 

Opportunities for Northeast Producers

Emphasize Local

Showcase regional identity and authenticity in your branding through storytelling. Consumers prefer local products, so share the story of your winery and the unique Northeast varietals with consumers.

Focus on Direct-to-Consumer (DTC) Sales

Wholesale and retail distribution will remain challenging in 2026. Wineries should focus on building direct relationships with consumers. Leveraging tasting room experiences and DTC channels, such as expanding flexible subscription models, can increase tasting room visitations and lead to higher margins.

To dive deeper into the above topics, review the webinar recording along with the presenter’s PowerPoint slides, or read the 2026 Wine and Grape Industry Outlook.

Looking to take your business to the next level? Farm Credit East provides services and programs to help set up your winery business for success. Farm Credit East’s consulting services help you better understand your business’s financial position, cashflow and create strategic short- and long-term goals. The Farm Credit East Winery Benchmarks Program is another useful tool to help you understand how your business stacks up against your industry peers.