Grape wine market in Brazil

Earlier Report Observations

The Brazilian grape wine market volume contracted from 503.2 million liters in 2018 to 474.1 million liters in 2020. This decline coincided with supply chain disruptions caused by the Covid-19 pandemic in 2020, which impacted domestic production despite a reported peak in per capita consumption that expanded the consumer base. Earlier, in 2018, the launch of the first Denominação de Origem for Brazilian sparkling wines aimed to support the national segment, while investments in automation and new facilities, such as the Cooperativa Vinícola Aurora installing new grape reception robots, were being made to boost production capacity.

Market volume rebounded to 499.8 million liters in 2021, driven by a long-term doubling of regular wine consumers since 2010 and the expansion of specialized retail channels, including the launch of the 'Pão de Açúcar Adega' store and the 'Viva Vinhos' subscription program. This growth was also supported by continuous vineyard area expansion and diversification into new grape varieties in Rio Grande do Sul. However, the market fell sharply to 449.6 million liters in 2022, primarily due to high inflation and increased transportation costs, which reduced overall profitability and led to an estimated 10% drop in total wine and sparkling wine volume.

The contraction continued, with the market volume decreasing to 413.8 million liters in 2023. During this period, the industry continued to develop with the expansion of vineyard area, which grew by 1.5% nationally, and the strengthening of regional wine tourism projects in the South, Minas Gerais, and Vale do São Francisco. New labeling regulations, such as the implementation of Instrução Normativa nº 14/2018, which set stricter composition and labeling standards, also came into full effect, increasing transparency for consumers.

Production grape wine in Brazil

In kind, 2018-2021, M l

On a global scale, Brazil ranked as the 13th largest producer of grape wine from 2018 to 2021.

Top producers of grape wine, 2018-2021

World map of production of grape wine, 2018-2021

After two years of decline, grape wine production in Brazil increased in 2021. The country produced 348.4 million liters of grape wine that year, marking a 6.7% year-over-year rise. However, over the entire 2018-2021 period, production fell by 10.8%, which translates to an average annual decrease of 3.8%. The lowest production level was recorded in 2020 at 326.6 million liters, with the steepest decline of 13.8% also occurring that year.

Annual dynamics of production in Brazil in kind, 2018-2021, M l

In value, 2018-2021, M $ US

Following two years of contraction, grape wine production in Brazil saw an upturn in 2021. The output was valued at 546.9 million US dollars, representing a 2.6% increase compared to the previous year. From 2018 to 2021, however, production value dropped by 32.9%, averaging an annual decline of 12.5%. The lowest value was recorded in 2020 at 533.1 million US dollars, with the most significant drop of 30.3% also taking place that year.

Annual dynamics of production in Brazil in value, 2018-2021, M $ US

Exports grape wine from Brazil

Exports in kind, M l

Brazil's cross-border shipments of grape wine grew for the second consecutive year in 2021. Exports reached 8.0 million liters, a 58.1% increase from 2020. Over the 2018-2021 period, exports surged by 86%, with an average annual growth rate of 23.0%. The lowest export volume was in 2019 at 4.1 million liters, which also saw the largest decline of 5.2%.

Annual dynamics of product's exports from Brazil in kind, 2018-2021, M l

From 2018 to 2021, Paraguay and the United States together accounted for 80.6% of Brazil's total grape wine exports in volume, with the remaining share distributed among smaller markets.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Brazil in kind, 2018-2021

Exports in value, M $ US

Brazil's grape wine export value rose for the second year in a row in 2021, reaching 12.6 million US dollars—a 52.1% increase from 2020. Between 2018 and 2021, export value grew by 40%, with a compound annual growth rate of 11.9%. The lowest value was recorded in 2019 at 8.3 million US dollars, which also experienced the most significant decline of 8.2%.

Annual dynamics of product's exports from Brazil in value, 2018-2021, M $ US

Throughout 2018-2021, the three largest markets for Brazil's grape wine exports in value terms were Paraguay, the United States, and Haiti, collectively accounting for 78.0% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Brazil in value, 2018-2021

Imports grape wine to Brazil

Imports in kind, M l

Brazil's grape wine import volume increased for the third consecutive year in 2021, totaling 159.3 million liters—a 4.5% rise from 2020. From 2018 to 2021, imports grew by 36.5%, with an average annual increase of 10.9%.

Annual dynamics of product's imports to Brazil in kind, 2018-2021, M l

Between 2018 and 2021, Chile, Portugal, and Argentina were the primary sources of grape wine imports to Brazil in volume terms, together making up 76.0% of total imports. Chile led with 45.1%, followed by Portugal at 15.7% and Argentina at 15.3%.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Brazil in kind, 2018-2021

Imports in value, M $ US

Brazil's grape wine import value expanded for the second straight year in 2021, amounting to 497.5 million US dollars—a robust 13.4% increase compared to 2020. Over the 2018-2021 period, import value rose by 26.7%, averaging an annual growth of 8.2%. The lowest value was in 2019 at 388.1 million US dollars, which also saw a decline of 1.1%.

Annual dynamics of product's imports to Brazil in value, 2018-2021, M $ US

From 2018 to 2021, Chile, Argentina, and Portugal dominated Brazil's grape wine imports in value terms, with a combined share of 70.9%. Chile accounted for 40.2%, Argentina for 15.8%, and Portugal for 14.9%.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Brazil in value, 2018-2021