This overview is based on data and insights from the 2024 California Chapter of the American Society of Farm Managers and Rural Appraisers (CAL ASFMRA) Trends Report.
2024 was another challenging year for Napa’s wine grape industry, marked by softening demand, rising costs, and a shifting landscape for vineyard property owners and buyers. As someone deeply rooted in Napa Valley real estate and vineyard sales, I’m sharing a high-level look at what unfolded last year and how it could impact decisions in 2025.
Consumer demand for wine continued to cool, especially in the value segment under $11 per bottle. Premium and luxury wines held stronger, with $50+ bottles being the top performers. Still, wineries across all tiers felt the slowdown.
Tasting room visits dropped. Wine club memberships fell. U.S. travelers opted for international destinations over domestic wine country experiences. Direct-to-consumer (DTC) revenue—which many wineries rely on—struggled to recover to pre-pandemic levels.
With softer sales, wineries were hesitant to buy more fruit. Most stuck to fulfilling multi-year contracts, and much of the uncontracted fruit in 2024 was left on the vine or sold below farming cost.
Calls to rebalance California’s oversupplied grape market led to the removal of 30,000–40,000 acres statewide between 2023 and 2024—mostly in interior regions. More pressure to remove acreage will be felt in 2025, particularly in Mendocino and Lake Counties, which suffered more in terms of unpicked fruit.
Farming, labor, and insurance costs all rose. Despite mechanization, many vineyard and winery operators are feeling the financial pinch. One of the most notable signs of strain was Vintage Wine Estates’ bankruptcy, resulting in the bulk sale of over 20 brands and properties.
Vineyard and winery sales were limited in 2024, especially in Napa’s Secondary and Outlying areas. Lifestyle buyers were cautious, strategic buyers stepped back, and investors grew more selective due to tighter vineyard economics. It doesn't help that many sellers are still holding on to pre-2022 pricing expectations, leading to a disconnect between asking price and buyer willingness.
Prime: $300K–$525K/acre (Oakville, Rutherford, Spring Mountain)
Secondary: $165K–$375K/acre (Oak Knoll, Calistoga, Atlas Peak)
Outlying: $50K–$165K/acre (Los Carneros, Pope Valley, Chiles Valley)
Sales in the Prime segment remained stable, but transactions in other areas were minimal or nonexistent.
A few major transactions bucked the trend, including:
Duckhorn Wine Company – Sold for $1.95B to a private equity firm
Williams Selyem, Flora Springs, and Kelly Fleming Wines – All sold in private deals
Brand founders reacquired MacPhail Family Wines and Patz & Hall
While the broader wine industry experienced shifts in 2024, premium vineyard and estate properties in Napa Valley continue to show resilience and long-term appeal. In particular, well-located, well-managed properties in Prime AVAs such as Oakville, Rutherford, and Spring Mountain have held value and seen strategic buyer interest—even in a cautious market.
Buyers may be more selective, but they’re also better informed, well-capitalized, and still seeking legacy assets that offer lifestyle, brand potential, and long-term returns. The scarcity of buildable vineyard land in Napa continues to support values, especially for properties with established vineyard blocks, entitlements, or turnkey infrastructure.
If you're considering selling—or simply want to understand your property's position in today’s landscape—I'm here to help. With deep local knowledge, strong wine industry ties, and a proven marketing strategy, I can help position your property to stand out in a competitive market. Through past vineyard sales in Napa I have a database of contacts interested in vineyard properties, especially off-market opportunities. Contact me to discuss your property, its current value, or potential opportunities if you are thinking about selling.