Grape wine market in Portugal

Earlier Report Observations

Between 2018 and 2020, the Portuguese grape wine market expanded from 820 million liters to 896 million liters. This growth was driven by increased production in key northern and central-northern regions like Douro and Vinhos Verdes, supported by continued regulatory measures such as the mandatory harvest and production declaration (DCP) which ensured sector transparency. Despite the onset of the COVID-19 pandemic in 2020, the market remained resilient due to government actions like opening promotion initiatives for the domestic market and support for vineyard restructuring under the VITIS program, which helped maintain production volumes.

A sharp contraction followed in 2021, with the market shrinking to 687 million liters, primarily due to a significant drop in domestic production. Strong export performance, reaching 328 million liters that year, further reduced the volume available for local consumption. The market declined further to 638 million liters in 2022, aligning with an official forecast for a 9% lower wine harvest. Recovery began in 2023 as production rebounded to 737 million liters, lifting the market to 708 million liters. This turnaround was bolstered by exponential export growth to Brazil, heightened international recognition of regions like Alentejo and Bairrada, and sustained domestic demand fueled by wine tourism, particularly for Port wine.

Production grape wine in Portugal

In value, 2018-2021, M $ US

In 2019, Portugal's grape wine output was valued at 2 191 million US dollars, which represented the lowest point during this period. The following year, in 2020, production remained virtually unchanged at 2 197 million US dollars. The largest decline occurred in 2019, with a decrease of 1.6%.

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

In kind, 2018-2021, M l

Between 2018 and 2021, Portugal ranked as the 10th largest producer of grape wine globally.

Top producers of grape wine, 2018-2021

World map of production of grape wine, 2018-2021

In 2020, Portugal produced 719 million liters of grape wine, reflecting a significant year-over-year decline of 23.3%. This followed a broader trend, as production decreased by 22.8% between 2018 and 2020, equating to an annualized rate of 8.3%. The lowest production level was recorded in 2021, at 719 million liters, which also saw the largest decline of 23.3%.

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

Exports grape wine from Portugal

Exports in kind, M l

Grape wine exports from Portugal grew for the second consecutive year in 2021, reaching 328.8 million liters, a 4.3% increase year-over-year. The lowest export volume was recorded in 2019 at 294.9 million liters, which also experienced the largest decline of 4.8%. In contrast, 2020 saw the largest increase at 6.9%. Over the period from 2018 to 2021, exports rose by 6.1%, with an annualized growth rate of 2.0%.

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

Between 2018 and 2021, Portugal's grape wine exports in volume were distributed across multiple countries without a single dominant partner. France accounted for 13.4% of exports, the United Kingdom for 8.1%, and the United States for 7.8%. Together, these three countries represented just 29.4% of total export flows.

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

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

Exports in value, M $ US

Portugal's grape wine exports in value terms increased for the second consecutive year in 2021, reaching 1 097 million US dollars, a 12.2% rise compared to 2020. The lowest value was recorded in 2019 at 917 million US dollars, which also saw the largest decline of 9.6%. From 2018 to 2021, exports grew by 8.1%, with an annualized rate of 2.6%.

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

From 2018 to 2021, France, the United States, and the United Kingdom were the top buyers of Portuguese grape wine in value terms, accounting for 13.4%, 10.7%, and 10.1% of exports, respectively. Together, they made up 34.3% of total export value, but no single partner dominated, as exports were spread across a wide range of smaller markets.

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

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

Imports grape wine to Portugal

Imports in kind, M l

In 2021, Portugal imported 297.1 million liters of grape wine, marking a moderate increase of 8.2% over the previous year. The largest decline occurred in 2020, with a decrease of 3.0%, while the largest increase was in 2019, at 41.9%. Over the period from 2018 to 2021, imports surged by 48.9%, with a compound annual growth rate of 14.2%.

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

Throughout 2018 to 2021, Portugal's grape wine imports in volume were heavily concentrated on Spain, which accounted for 95.3% of total flows.

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

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

Imports in value, M $ US

Portugal's grape wine imports in value terms grew for the second consecutive year in 2021, reaching 204 million US dollars, a limited increase of 7.7% over the past year. The lowest value was recorded in 2019 at 189 million US dollars, which also experienced the largest decline of 3.1%. From 2018 to 2021, imports increased by 4.6%, with a compound annual growth rate of 1.5%.

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

Between 2018 and 2021, Spain consistently represented 75.6% of Portugal's total grape wine imports in value terms, indicating a high concentration on this market. The remaining imports were distributed among other countries.

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

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