The number of German winegrowers is declining. More and more winegrowers are now sharing the fate of small and medium-sized retail businesses in German city centers. The abandonment of vineyards is spreading throughout the country. By the way, Germany’s northernmost vineyard is located on Sylt, followed by a vineyard on Rügen.

While the number of smaller businesses is steadily declining, by around 50 percent in 13 years, the number of large businesses remains stable and is even rising slightly, along with the cultivated area, which is also increasing.

Reasons for giving up the business

Germany is still a “beer country.” Per capita consumption of 88 liters of beer in Germany in 2023 was compared to only 19 liters of wine. However, breweries are also struggling more and more with the market. This is in contrast to Italy, where wine consumption is stagnating in favor of demand for craft beer.

Rising labor costs for employees and a decline in demand for German wine are causing problems for wine-growing businesses. There are two reasons for the decline in demand. On the one hand, young people drink less alcohol than their parents did. On the other hand, the pressure from cheaper imported wines is affecting sales figures for German wines.

Winegrowers from Rhineland-Palatinate launch a future initiative

In Billigheim-Ingenheim, Rhineland-Palatinate, winemaker Thomas Schaurer founded the “Future Initiative for German Wine.” Speaking to SWR (August 4, 2025), Schaurer described the situation of small German winemakers in a simple sentence: “We are facing extinction.” So far, 156 of the approximately 14,000 wineries have joined the initiative. Schaurer sees two possible solutions to save smaller winegrowers in particular from insolvency.

Firstly, one less bottle of foreign wine per capita per year would have to be sold and one more bottle of German wine instead. At least for Rhineland-Palatinate, the largest producer with 63 percent of Germany’s wine-growing areas, this would be a solution. The second approach would be to no longer allow sales prices below three euros per bottle. According to the initiative, such sales prices are simply exploitation due to rising production costs.

How could German consumers counteract the decline of winegrowers?

The example of Italian Pinot Grigio illustrates an absurdity inherent in German wine consumption. Pinot Grigio is also an Italian wine that is frequently consumed in Germany. The name sounds like “dolce far niente,” summer, and beach. In contrast, the rather homely Ruländer is quite different. However, those who prefer Pinot Grigio to the boring Ruländer should take a look at the origin of the vine. They will discover that Grauburgunder is another synonym for the grape that mutated from the original Pinot Noir vine. Three names, one wine – so why not switch to Palatinate Grauburgunder in the future? A Ruländer is subject to a different harvesting and production process, which makes it a heavier wine with a distinct sweetness.

Those who prefer red wines do not have to resort to French Burgundy. In the Ahr Valley, it is preferably pressed from Pinot Noir grapes. Germany is the world’s third largest producer of Burgundy after France and the USA (source: vinum.eu).