For years, the story of Italian wine exports to the United States was one of unshakable strength.
Synonymous with record-breaking figures, upward trends, and a future flush with promise, the U.S. market was the jewel in the crown of Italy’s global wine trade. But the once-favorable winds have shifted — and sharply so.
According to the latest figures from the Osservatorio del Vino of the Unione Italiana Vini (UIV), processed via Sipsource data on distributor warehouse outflows, Italian wine consumption in the U.S. dropped by a staggering 10.6% in May 2025, compared to the same month in 2024. The decline is not isolated: the cumulative decrease for the first five months of the year now stands at -6.3%, both in volume and value.
This downturn marks one of the most dramatic contractions in recent years, part of a broader trend that’s been slowly eroding market stability. And while Italian wine is still outperforming the overall U.S. wine market — which saw a -14.4% drop in May and -9% for the January-May period — the direction is nonetheless worrisome.
Several key factors are contributing to this slide:
- Post-Tariff Exhaustion: The initial rush to import and stockpile Italian wines in anticipation of U.S. tariffs has long passed. When duties did hit, their impact was felt harshly across trade channels, making Italian bottles less competitive.
- Shifting Consumer Behavior: Especially among younger American consumers, traditional wine is losing ground to other alcoholic beverages — such as craft spirits, RTDs, and non-alcoholic alternatives. The generational pivot is real and pressing.
- Market Saturation and Inflation: With rising costs and changing retail strategies, wine consumption in general has contracted, and even trusted labels from Italy are struggling to hold ground.
In response, UIV President Lamberto Frescobaldi sounded the alarm:
“In the U.S., there is a worrying progressive decline in wine consumption, and Italian labels are not exempt. The imposition of duties by America risks inflicting a fatal blow to an already stagnant market, which remains fundamental for Made in Italy and for the historic relations between Italy and the United States.”
Frescobaldi emphasized the urgency for strategic realignment: a re-evaluation of Italian wine’s global positioning, diversification of export markets, and a serious internal debate on modernizing the Italian offering for a new generation of consumers.
These discussions will take center stage at the UIV General Assembly on July 3rd in Rome, where the future of Italian wine exports — not just to the U.S., but worldwide — will be addressed with renewed urgency.
The Path Ahead
Italy’s wine sector, long admired for its heritage, quality, and global appeal, now faces a stark choice: adapt or risk losing relevance in a critical export market. Whether through innovation, promotion, or negotiation, the next steps taken in Rome may chart the future of one of Italy’s most iconic industries.
Source: WineNews