The Ultimate Guide to Winery Growth in 2025

As wineries navigate the complexities of 2025, growth isn’t just about producing excellent wine—it’s about embracing strategies and technologies that streamline operations and connect more meaningfully with customers. With challenges like shifting consumer preferences, economic pressures, and increasing competition, the ability to adapt will determine which wineries thrive in the coming year.

In this guide, we’ll explore the current state of the wine industry, uncover why traditional methods are falling short, and provide actionable strategies for growth. We’ll also share real-world insights, including how Cakebread Cellars transformed their operations with a fresh approach.

The wine industry is undeniably at a crossroads, facing challenges that threaten to upend decades of traditional practices. What once worked seamlessly—relying on distributor relationships, regional tourism, and a loyal but aging customer base—is no longer sufficient in today’s rapidly changing marketplace. The pressing need to adapt is driven by profound shifts in consumer behavior, market dynamics, and operational pressures. Let’s take a closer look at why traditional winery operations are no longer effective.

Sales volumes in the global wine market have been steadily declining, with a 3.9% drop reported in 2024 and projections indicating further decreases in 2025. This decline isn’t just a temporary downturn but a structural market shift that threatens long-term stability. Wineries relying heavily on traditional retail and distribution channels are finding it increasingly difficult to maintain revenue. Fewer consumers are reaching for wine, as they are instead exploring other alcoholic beverages like craft beers, spirits, and hard seltzers.

Millennials and Gen Z are reshaping the alcohol market with their distinct preferences and values. These generations seek variety, authenticity, and experiences, and are far less likely to demonstrate brand loyalty compared to older consumers. This has resulted in a noticeable shift away from traditional wine consumption habits. These younger consumers gravitate toward alternatives like craft beers and ready-to-drink cocktails, often selecting products that align with their lifestyle choices. Without strategies to appeal to this audience, wineries risk losing out on a critical future customer base.

Inflation has driven up costs for essential production materials like glass bottles, corks, and packaging. Labor costs and logistics expenses have also risen sharply, placing additional strain on wineries. Many have been forced to raise prices to cover these increasing costs, but this has come at a risk. Consumers, already burdened by economic uncertainty, are becoming more price-sensitive and may cut back on discretionary spending like wine purchases. Wineries are left trying to find a delicate balance between maintaining profitability and retaining their customer base.

Overproduction during the COVID-19 pandemic has left many wineries grappling with a surplus of inventory. Optimistic demand projections during the pandemic led to overstocked tanks, barrels, and bottles, creating an excess supply that has yet to be resolved. This surplus ties up valuable storage space and financial resources while also forcing wineries to discount their products to clear inventory. While discounts may help move stock in the short term, they can harm brand perception and devalue a winery’s reputation over time.

The consolidation of the distribution network has made it harder for small and mid-sized wineries to access shelf space or market their products effectively. Larger producers dominate distribution channels, leaving smaller wineries to compete for limited opportunities. This trend has eroded the visibility of boutique wineries and made them more reliant on alternative sales channels like direct-to-consumer models. Additionally, dependence on distributors limits a winery’s ability to control pricing and branding, making it harder to stand out in an already crowded market.

Climate change is introducing new uncertainties for wineries, with severe weather events, rising temperatures, and natural disasters like wildfires disrupting grape cultivation. Droughts and heatwaves have forced some wineries to rethink their growing practices, while others have had to explore planting new varieties or relocating to more stable climates. These shifts require significant investment in both time and resources, but they are no longer optional for wineries that want to preserve their product quality and ensure long-term viability.

The wine industry faces more competition than ever before from an expanding beverage market. Categories such as ready-to-drink cocktails, premium spirits, and craft beers have captured consumer interest with innovative packaging, bold marketing, and lower price points. These alternatives are often more appealing to younger audiences and are being marketed as modern, fun, and convenient. Wineries that fail to differentiate themselves with unique offerings, compelling stories, or memorable customer experiences risk losing market share to these emerging competitors.

Consumers are increasingly turning to online shopping for wine, expecting the same seamless experience they enjoy in other industries. Personalized recommendations, fast shipping, and hassle-free returns have become standard expectations for online wine shoppers. However, many wineries have been slow to invest in e-commerce platforms capable of meeting these demands. Compounding this issue, traditional retail channels such as grocery stores and wine shops are reducing the amount of shelf space allocated to wine, making it even more challenging for wineries to rely solely on brick-and-mortar sales.

The wine industry isn’t just evolving—it is transforming. Wineries that continue to depend on outdated methods will struggle to compete in a marketplace that now demands agility, innovation, and customer-centric approaches. To survive—and thrive—leaders must rethink their operations, embrace new technologies, and adopt strategies that enable them to connect more effectively with today’s consumers.

The wine industry is no longer just about making great wine—it’s about running a business that understands shifting consumer behaviors, adopts modern technology, and implements data-driven strategies to stay ahead of the curve. For wineries to thrive in 2025, they need to move beyond traditional approaches and embrace innovation at every level. Below are actionable strategies designed to help winery leaders enhance their operations, improve customer engagement, and boost profitability in a competitive marketplace.

The rise of e-commerce has redefined how consumers purchase wine, making direct-to-consumer sales one of the most critical growth areas for wineries. By bypassing traditional distributors, wineries can build stronger relationships with their customers, create tailored experiences, and maintain greater control over their brand and pricing.

To succeed in DTC, wineries need robust online platforms that deliver a seamless shopping experience. This includes offering personalized wine recommendations based on browsing or purchase history, subscription plans for convenience and loyalty, and tools that allow customers to customize their orders. Digital experiences like virtual wine tastings or behind-the-scenes content can further deepen customer connections.

It’s also essential to ensure that digital touchpoints enhance—rather than detract from—the unparalleled in-person experiences wineries are known for. An inconsistent or frustrating online journey can undermine even the most memorable tasting room visit. Aligning digital and physical interactions ensures a cohesive customer experience that strengthens relationships and builds loyalty.

A platform like Salesforce can simplify DTC management by centralizing customer data, automating order processes, and providing tools for targeted marketing campaigns. By creating a single source of truth for customer interactions, wineries can deliver the personalized, efficient service modern consumers expect, without compromising their in-person charm.

Millennials and Gen Z represent a largely untapped market for wineries, and capturing their attention requires understanding their preferences and values. These generations favor brands that are authentic, innovative, and socially conscious. They also gravitate toward beverages that reflect their lifestyle, whether that’s low-alcohol options, sustainable products, or wines with unique stories.

To engage this audience, wineries should:

Wine clubs are a proven way to cultivate customer loyalty and ensure recurring revenue. However, a generic club offering is no longer enough to stand out. Wineries should rethink their wine clubs as premium, experiential programs that deliver consistent value and exclusive access to members.

For example, wineries can offer tailored membership levels that include benefits such as early access to limited releases, complimentary tastings, virtual winemaker Q&A sessions, or exclusive events. Personalized recommendations and flexible subscription options (e.g., allowing members to skip shipments or customize their wine selections) can make membership more appealing.

Leveraging CRM platforms like Salesforce can simplify wine club management by automating member communication, tracking preferences, and analyzing engagement to offer personalized experiences.

A strong digital presence is no longer optional. Wineries must reach consumers where they spend their time: online. Social media platforms like Instagram, TikTok, and Facebook offer opportunities to showcase wine offerings, tell compelling stories, and engage directly with followers.

Creating relevant, high-quality content is key. Wineries can post videos about vineyard tours, wine-making processes, or food pairings to build interest. Collaborating with influencers who resonate with younger audiences can further expand reach. Paid advertising campaigns targeting specific demographics, geographic areas, or interests can also help drive traffic to winery websites and tasting rooms.

A detailed content calendar aligned with release schedules ensures consistent messaging across channels, while tools like Salesforce Marketing Cloud enable wineries to create targeted campaigns based on customer behavior and preferences.

Sustainability is more than a buzzword—it’s a business imperative. Consumers, especially younger ones, are increasingly drawn to brands that prioritize environmental responsibility. Wineries that invest in sustainable practices can differentiate themselves while reducing costs and building long-term resilience.

Sustainable efforts could include switching to organic or biodynamic farming, using renewable energy sources, implementing water conservation strategies, and adopting recyclable or compostable packaging. Communicating these efforts effectively through marketing materials, labels, and digital platforms can resonate strongly with environmentally conscious buyers.

Packaging is an often-overlooked element of branding, but it can be a powerful tool for differentiation. Sustainable packaging, such as lightweight bottles or recyclable materials, appeals to eco-conscious consumers. Interactive labels that use augmented reality (AR) can create engaging, tech-savvy experiences, such as telling the story of the wine through videos accessed by scanning a QR code.

Implementing AR technology or digital wine catalogs can enhance the tasting room experience, making it more memorable and engaging for visitors. These innovations also help wineries stand out in a crowded marketplace and appeal to younger audiences.

Efficiency is key to profitability, and technology can play a transformative role in optimizing winery operations. Tools like AI and advanced analytics can provide valuable insights into customer behavior, inventory management, and production forecasting.

For example, predictive analytics can help wineries anticipate which products will be in demand based on historical trends and external factors like weather patterns. This data-driven approach minimizes overproduction and reduces waste.

Tools like Salesforce Retail Cloud can unify fragmented data, enabling wineries to gain a holistic view of their operations. This helps streamline processes like inventory management, compliance, and customer service, saving time and resources while enhancing the customer experience.

The winery experience has always been a major draw for visitors, and in 2025, it’s more important than ever to offer something truly memorable. Wineries can stand out by hosting events, creating immersive activities, or positioning themselves as premier event venues.

For example, wineries can offer vineyard yoga sessions, farm-to-table dining experiences, or seasonal festivals. Personalized tours and guided tastings allow visitors to connect with the brand on a deeper level. Marketing these experiences through email campaigns and social media ensures they reach the right audience.

Direct-to-consumer and tasting room sales typically generate the highest profit margins for wineries. Prioritizing these channels means offering a seamless experience, both in-person and online. This includes making it easy for customers to purchase wine during their visit and offering follow-up promotions to encourage repeat sales.

Leveraging customer data to create personalized marketing campaigns for tasting room visitors can also help turn one-time buyers into loyal customers. CRM platforms like Salesforce enable wineries to track visitor preferences and follow up with tailored offers.

Consumer tastes are constantly evolving, and wineries that embrace diversification are better positioned to meet these changing preferences. Offering new products such as low-alcohol wines, wine spritzers, or even non-alcoholic options can help wineries tap into emerging trends. This not only broadens appeal but also demonstrates adaptability in a competitive marketplace.

By focusing on these strategies, wineries can strengthen their market position, enhance profitability, and build lasting connections with their customers in 2025 and beyond. In the next section, we’ll look at a real-world example of these strategies in action.

Cakebread Cellars, a renowned Napa Valley winery, faced operational hurdles despite a thriving wine club and direct-to-consumer (DTC) business. Their existing ERP system couldn’t effectively store customer data or enable cross-marketing efforts, limiting their ability to personalize experiences and drive growth.

After an initial attempt to implement a specialized CRM platform fell through due to external disruptions, Cakebread turned to Salesforce B2C Commerce for its stability, headless commerce capabilities, and AI-driven insights.

Despite Salesforce’s potential, the implementation process faced critical issues:

Cakebread Cellars’ journey underscores the importance of leveraging data and partnering with experts to unlock growth. Their advice to other wineries is clear:

Cakebread’s success story highlights how modern technology can elevate operations and deepen customer connections, setting a strong foundation for growth.

To thrive in today’s changing market, wineries must go beyond traditional operations and adopt innovative strategies that maximize ROI. From embracing direct-to-consumer sales to targeting younger demographics and leveraging technology, success in 2025 demands a focus on efficiency, personalization, and adaptability.

The story of Cakebread Cellars shows how modernizing operations and partnering with experts like Bolt Today can deliver transformative results. By streamlining processes, improving customer experiences, and unlocking the power of data, Cakebread not only overcame challenges but also positioned itself for sustained growth.

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