Silicon Valley Bank

State of the US Wine Industry 2025

Nick Muccitelli logo

Introduction

The wine industry offers a tapestry of beauty and craftsmanship that is captivating, evoking a lifestyle that seems worlds away from ordinary life. The business is not merely an occupation; it’s a passionate pursuit, rich with sensory experiences, social connections, and profound personal meaning. For those of us lucky enough to work in the industry, those are a few of the reasons we chose this path as a career. For the consumer, those same characteristics ignite envy in those who are not immersed in the business. It’s that mysticism that calls them to enter this idyllic realm we call wine country.

Admittedly, that was flowery. But it evokes the imagery reflected in the eyes of those looking in. Consumers may think those of us in the wine business live luxurious lifestyles, waking at 4:00 PM for massages with enough time for a seven-course meal. The reality is that this business is flat-out hard work, and it’s getting harder.

After thirty years of moving up and to the right, it is foreign to see wine industry metrics flatten out. This isn’t like any era before, so the solution will not be straightforward. We lack a historical solution set to emulate. There is hard work ahead, but I do not doubt that creativity, something we have in abundance, will provide solutions.

In my opinion, we are caretakers charged with protecting an industry that’s thousands of years old. We each have a part to play. For me, as a banker and analyst, it would certainly be easier to downplay the difficulties we face and report that all is well. However, it’s critical that our industry leaders be forthright and transparent, communicating the data as we see and understand it—even as it becomes uncomfortable to read. To do otherwise slows adaptation, so the faster we reach a consensus on the issues, the quicker we can implement collaborative solutions. Translation: don’t blame the messenger!

Change always creates opportunities for those willing to understand the risks and are capable of charting a course toward success. We hope that presenting our views will spur new conversations and encourage industry collaboration to help us evolve and thrive in the years to come.

Rob McMillan<br />
EVP & Founder,<br />
SVB Wine Division

Rob McMillan
EVP & Founder, SVB Wine Division
rmcmillan@svb.com

Rob McMillan is one of the top wine-business analysts in the United States and the author of Silicon Valley Bank’s highly regarded annual State of the Wine Industry Report, described by The New York Times as “probably the most influential analysis of its kind.”

With Rob’s decades of experience researching the industry and working with winery clients, his views are sought after and trusted by winery owners, journalists, entrepreneurs and investors.

He is a prominent speaker, domestically and internationally, and you will find him extensively quoted in the national, regional and trade press.

“In my opinion, we are caretakers charged with protecting an industry that’s thousands of years old. We each have a part to play.”