Region’s wineries report excellent harvest, rising wages and stable market demand as overall industry faces cost inflation, operational complexity, easing sales, and a national grape oversupply

The San Diego County Vintners Association (SDCVA), a trade organization dedicated to supporting the winemaking community and wine education outreach in San Diego County, released the State of San Diego Wine Industry 2026 report today.

According to the report, San Diego County’s wine industry demonstrated resilience and adaptability in 2025 as the broader national wine industry navigated rising operational complexity, easing demand, and cost escalation. The report highlights strong harvest quality, renewed hiring momentum and a stable winery base in San Diego, despite softening in national wine sales.

The 2025 harvest was a standout for the region, with two-thirds of wineries reporting “good” or “excellent” growing conditions, which positions San Diego vintners to deliver exceptional wines in the near future. The region’s reputation for quality, value-based direct-to-consumer experiences continues to set it apart from larger California wine regions, as the median tasting fees in the county remain at $20.

Demand for local wines remains relatively stable. The real challenge, the report notes, isn't generating business, it's protecting profitability as costs climb.

“San Diego wineries prove that great winemaking and real hospitality are what keep a wine region healthy,” says San Diego County Vintners Association Board President Al Fischer. “The broader market is going through some changes right now, but our region just keeps adapting with discipline and creativity.”

Key report findings:

• Excellent harvest quality: Two-thirds of San Diego wineries rated the 2025 harvest as “good” or “excellent.”
• 43 wine grape varieties grown in San Diego: Cabernet Sauvignon (65%), Malbec (62%), Merlot (62%), and Sangiovese (62%).
• Hiring is back: 24% of wineries plan to add staff in 2026, with targeted growth in hospitality and direct-to-consumer roles.
• Wages rising locally: San Diego’s wine industry wages posted modest growth, as wages in Napa and Sonoma have plateaued or declined from post-pandemic highs.
• Stabilization in local wine revenue, with notable dips reported: 41% of respondents indicated sales “stayed about the same,” and a combined 41% of wineries reporting declining sales.
• A stable, established region: Active and planned wineries held steady at 172, reflecting sustained confidence in San Diego’s wine region.
• Accessible tasting experiences: Median tasting fees held steady at $20 — well below the $38 national average — preserving San Diego’s reputation as welcoming and affordable.
• Strategic adaptation: A growing share of wineries are investing in marketing, digital sales and workforce development.

San Diego County Supervisor Jim Demond says, “San Diego County's wine industry is an economic engine for our rural communities and a powerful draw for tourism. This report validates that despite headwinds facing the broader industry, our local wine producers continue to distinguish themselves through craftsmanship, innovation, and hospitality that sets them apart.”

Congressman Scott Peters says, “Behind every wine bottle from San Diego is a small business creating jobs, supporting agriculture, and welcoming visitors from across California and beyond. I'm encouraged to see this region's wineries growing wages and expanding teams even as the national market tightens. It’s a testament to what California's entrepreneurs do best.”

San Diego County Vintners Association is celebrating San Diego Wine Week from May 25 – May 31, culminating at its SDCVA Annual Wine Festival at Bernardo Winery from 3 p.m. – 6 p.m. Get festival tickets here.

Full report here. For more about San Diego County wines visit www.sandiegowineries.org.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260527991401/en/

"San Diego wineries prove that great winemaking and real hospitality are what keep a wine region healthy," says San Diego County Vintners Association Board President Al Fischer.