Thanksgiving wine prices US: Tariffs are making wine bottles pricier and harder to find – what shoppers need to know before Thanksgiving
Tariffs and High Costs Are Boosting Wine Prices in the U.S.
Government data shows that bottled wine prices have increased nearly 20 percent in the last 25 years and 8 percent in the last decade due to inflation, rising production costs and climate change, CNN reported.
Prices at McCabes Wine & Spirits in Manhattan have increased between 5% and 12% this year, according to the report. “The reality of tariffs, transportation, production and labor,” company owner Daniel Mesznik said, as quoted by CNN.
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Wine Retailers Struggle to Cover Tariff Increases Retailers are trying to absorb the pressure as much as possible. The Trump administration’s tariffs, including a 15 percent tariff on European Union imports, have increased upfront costs and left wine stores walking a fine line between remaining competitive and covering their expenses, according to the report.
“We’re doing our best to keep these increases to a minimum for our guests,” Mesznik told CNN, as quoted in the report, “But I think people understand that this is the current reality and are open to it and understand it.” Importers are feeling even more pressure. Elenteny Imports, which works with 9,000 retailers and restaurants, says wine sales are down 13% year over year, according to CNN. ALSO READ: Flash flood warning after rains in Southern California – traffic impacts, landslides and full details
US Wine Consumption Continues to Decline
Wine consumption in the US fell 3% from 2019 to 2024 and is expected to drop another 4% between 2024 and 2029, according to alcohol data analysis firm IWSR, CNN reported.
Drinkers Turn to Spirits and Ready-to-Drink Beverages IWSR president Marten Lodewijks said: “In casual drinking environments, drinkers who prefer not to drink beer have often chosen wine. But wine can be expensive and only comes in larger bottles.” is growing rapidly”, as quoted in the report.
Imported Wine Orders Drop Nearly 30% in 2025
Data from Elenteny shows that 2025 will be another difficult year, with import wine orders down nearly 30% so far, according to a CNN report.
CEO Alexi Cashen said demand has decreased since the “post-pandemic froth” but tariffs remain a major hurdle, according to the report. He also said that even the domestic wines Trump intended to help did not perform better, according to CNN.
Tequila Sales Increased as Tariffs Exempt Agave Spirits
This shift is clearly evident at McCabes Wine & Spirits. After reopening following a 16-month renovation, Mesznik increased its tequila selection by 40% and moved bottles to the front of the store, according to the report. According to CNN, tequila and mezcal are exempt from taxes under the free trade agreement signed by Trump with Mexico in 2018.
Wine once accounted for about 70% of annual sales, but with the rise of agave spirits, that’s expected to drop to 65% this year, according to the report.
Reducing Imports Causes Dwindling Wine Selection
Shoppers may soon see fewer options at their local stores, as orders for imported wine have fallen sharply, including a 50% drop in France and a 66% drop in Italy, CNN reported.
Wine Economist Mike Veseth noted that many businesses are already streamlining their selections as overall alcohol demand declines. “Many retailers, distributors, and restaurants have streamlined their wine offerings in response to decreased overall demand for alcoholic beverages, including wine,” Veseth told CNN. “Consumers may have to search further than usual to find a particular brand,” as quoted in the report.
Tariff Legal Uncertainty Puts Pressure on the Wine Industry
Veseth added that uncertainty about the Supreme Court’s decision on the legality of tariffs has deterred the industry from making major investments or pricing decisions, according to the CNN report.
While mid-priced bottles in the $40 to $50 range are struggling the most, according to Cashen, lower-priced and premium wines continue to sell out, underscoring a growing divide in the market, according to the report.
FAQ
Why are wine prices rising this Thanksgiving?
Prices are rising due to tariffs, higher transportation costs, inflation and rising production costs, according to the report.
How much have wine prices increased recently?
Government data shows bottled wine prices have risen nearly 20% in 25 years, and 8% in the last decade.
