Association: German Wine Growing in 'Historic Crisis' - German Wine Crisis Deepens as Harvests Shrink and Costs Skyrocket
Germany’s wine industry is struggling through its worst economic crisis in years. Producers face soaring costs, shrinking demand, and a sharp drop in harvest volumes. Many vineyards, especially those on steep slopes, are now fighting to stay afloat.
The 2025 harvest brought just 7.3 million hectoliters—16% below the 10-year average and the smallest yield since 2010. Key regions like Rheinhessen, Palatinate, Baden, and Württemberg saw losses of up to 20% compared to 2024. Despite the lower volumes, the vintage is praised for its aromatic, concentrated, and elegant quality.
Prices for bulk wine have collapsed to between 40 and 60 cents per litre, well under production costs of around €1.20. Nearly two-thirds of German wine is sold through supermarkets, where competition and low margins add to the pressure. Rising minimum wages and scarce seasonal labour have pushed wage costs above revenues for many growers.
Steep-slope vineyards, known for their unique landscapes and high biodiversity, face even higher costs for mechanical cultivation. Automation helps but cannot offset the financial strain from rising energy, production, and labour expenses. Joachim Rukwied, president of the German Farmers’ Association, has called on consumers to back domestic producers to help secure the industry’s future.
The combination of falling prices, reduced harvests, and escalating costs has left many winemakers in a precarious position. Without significant changes in demand or support, the survival of some traditional vineyards remains uncertain.
