Grape wine market in MERCOSUR

Earlier Report Observations

The grape wine market in MERCOSUR contracted from 1 776 million liters in 2018 to 1 260 million liters in 2020, with production falling from 1 919 million liters to 1 477 million liters. This decline coincided with negotiations for the MERCOSUR-EU agreement, which anticipated heightened future competition from European wines, and was exacerbated by the COVID-19 pandemic in 2020, which reconfigured consumption channels and reduced overall volume.

After a partial recovery to 1 567 million liters in 2021, the market size fell again to 1 168 million liters by 2023. During this period, the market underwent premiumization, with a shift away from entry-level wines toward higher-value segments, contributing to the volume decrease. The Brazilian wine sector also expressed concerns about competitive asymmetries ahead of planned tariff reductions on European wines scheduled for 2026.

By 2024, with the MERCOSUR-EU agreement delayed until 2026, the market adapted through rising consumption of white wines, rosés, and sparkling wines, alongside expanded production and sales of zero-alcohol and low-alcohol beverages, reflecting diversification in response to consumer preferences and local conditions.

Production grape wine in MERCOSUR

In kind, 2017-2020, M l

Top producers of grape wine, 2017-2020

World map of production of grape wine, 2017-2020

MERCOSUR's grape wine production volume declined for the second consecutive year. In 2020, production reached 1 477 million liters, representing a significant decrease of 15.2% compared to 2019. Over the 2017-2020 period, production fell by 8.9%, with a compound annual growth rate of 3.1%. The highest production level was recorded in 2018 at 1 919 million liters, which also marked the largest annual increase of 18.3%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, M l

In value, 2017-2020, M $ US

MERCOSUR's grape wine production value declined for the third consecutive year. In 2020, output was valued at 3 352 million US dollars, showing a sharp decline of 34.6% from 2019. Over the 2017-2020 period, production value decreased by 49.7%, with a compound annual growth rate of 20.5%.

Annual dynamics of production in MERCOSUR in value, 2017-2020, M $ US

Exports grape wine from MERCOSUR

Exports in kind, M l

Grape wine shipments from MERCOSUR to abroad increased for the third consecutive year. In 2020, export volume reached 353.4 million liters, representing a 27.1% increase compared to 2019. Between 2017 and 2020, exports grew by 74.8%, equating to an annualized growth rate of 20.5%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, M l

During the 2017-2020 period, the United States (20.6% of exports in volume), the United Kingdom (13.7%), and Canada (9.8%) were notable but not dominant buyers of grape wine from MERCOSUR. Their combined share reached 44.2% of total exports in volume.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, M $ US

MERCOSUR's grape wine export value declined for the second consecutive year. In 2020, exports totaled 801.8 million US dollars, reflecting a modest decrease of 1.9% compared to the previous year. Over the 2017-2020 period, export value decreased by 3.4%, with a compound annual growth rate of 1.2%. The highest value was recorded in 2018 at 849.6 million US dollars, which also saw the largest annual increase of 2.3%. The most significant decline occurred in 2019, with a decrease of 3.8%.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, M $ US

During the 2017-2020 period, the United States (30.8% of exports in value), the United Kingdom (13.6%), and Canada (8.3%) continued to be the main buyers of grape wine from MERCOSUR. Together, they accounted for 52.7% of total exports in value terms.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports grape wine to MERCOSUR

Imports in kind, M l

After two years of decline, MERCOSUR's grape wine import volume increased. In 2020, imports reached 136.4 million liters, representing a 17.7% increase from 2019. Over the 2017-2020 period, imports decreased by 31.8%, with a compound annual growth rate of 12.0%. The lowest volume was recorded in 2019 at 115.9 million liters, while the largest decline occurred in 2018 with a decrease of 41.5%.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, M l

During the 2017-2020 period, Chile (48.4% of imports in volume), Portugal (11.0%), and Italy (7.4%) formed the main cluster of suppliers for MERCOSUR's grape wine imports. Their combined share reached 66.7% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, M $ US

After two years of reduction, MERCOSUR's grape wine import value increased. In 2020, import value reached 486.9 million US dollars, up by 9.0% year-over-year. Over the 2017-2020 period, import value decreased by 5.9%, with a compound annual growth rate of 2.0%. The lowest value was recorded in 2019 at 446.9 million US dollars, while the largest decline occurred in 2018 with a decrease of 9.6%.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, M $ US

Over the 2017-2020 period, Chile (41.4% of imports in value), Portugal (11.7%), and France (9.3%) led the ranking of grape wine suppliers to MERCOSUR. Their combined share reached 62.4% of total imports in value terms.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020