Grape wine market in South America

Earlier Report Observations

The grape wine market in South America, driven largely by Argentina, experienced significant volume fluctuations between 2018 and 2023. Market size in physical terms fell from 2.38 billion liters in 2018 to 1.61 billion liters in 2020, then recovered to 2.22 billion liters in 2021 before declining again to 1.84 billion liters in 2023. In value terms, the trend was similar, with the market dropping from $7.0 billion in 2018 to $4.3 billion in 2020, rebounding to $6.7 billion in 2021 and stabilizing around $6.5 billion in 2022-2023.

In 2024, industry reports indicated a sharp turnaround in production, with Argentine wine and must output jumping 32.8% to 14.25 million hectoliters. Exports of viticultural products also grew by 15.1% in value, led by concentrated must shipments that more than doubled. This expansion occurred despite continued weakness in domestic wine consumption, which put downward pressure on local prices and prompted calls for vineyard reconversion.

To manage surplus grapes and diversify revenue, the provinces of San Juan and Mendoza agreed to direct 22-23% of the harvest to must production. Additionally, the absence of export duties and a 7% export refund helped maintain competitiveness abroad, supporting Argentina’s position as the world’s second-largest exporter of organic viticultural products.

Production grape wine in South America

In kind, 2017-2020, M l

Top producers of grape wine, 2017-2020

World map of production of grape wine, 2017-2020

South America's grape wine production has declined for the second year in a row. In 2020, the region produced 2 603 million liters of grape wine, representing a significant 14.1% decrease from 2019. Looking at the period from 2017 to 2020, production fell by 2.1%, which translates to an annualized decline of 0.7%. The peak production was recorded in 2018 at 3 300 million liters, with the largest increase of 24.1% also occurring that year.

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

In value, 2017-2020, M $ US

South America's grape wine production has declined for the second consecutive year. In 2020, the output was valued at 6 257 million US dollars, showing a sharp year-over-year drop of 20.7%. Over the 2017-2020 period, production decreased by 16.5%, with a compound annual growth rate of -5.8%. The highest value was recorded in 2018 at 9 217 million US dollars, when the largest increase of 23.0% was also observed.

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

Exports grape wine from South America

Exports in kind, M l

Grape wine exports from South America have increased for the third consecutive year. In 2020, exports reached 1 092 million liters, up by 3.4% compared to the previous year. From 2017 to 2020, exports grew by 7.9%, with a compound annual growth rate of 2.6%.

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

From 2017 to 2020, the export partner structure for grape wine in volume terms was balanced rather than concentrated. The United States accounted for 16.8% of exports, the United Kingdom for 13.1%, and China for 12.6%. Together, these three countries represented 42.5% of total flows, while many other countries made up the remaining 57.5%.

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

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

Exports in value, M $ US

South America's grape wine exports have declined for the second year in a row. In 2020, the region exported 2 625 million US dollars worth of grape wine, marking a modest reduction of 4.5% year-over-year. Between 2017 and 2020, exports decreased by 7.9%, equating to an annualized decline of 2.7%. The largest increase was recorded in 2018 at 0.0%.

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

From 2017 to 2020, the United States, China, and the United Kingdom were among the largest buyers of grape wine from South America in value terms, accounting for 17.4%, 12.0%, and 11.2% of exports, respectively. However, even combined, they represented just 40.6% of total export value, indicating a broadly diversified partner base.

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

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

Imports grape wine to South America

Imports in kind, M l

Grape wine imports into South America have increased for the second consecutive year. In 2020, the region imported 101 million liters, up by 2.3% from the previous year. The lowest volume was recorded in 2018 at 95 million liters, when the largest decline of 6.6% occurred. The largest increase was in 2019 at 3.3%.

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

From 2017 to 2020, the import partner landscape for grape wine in volume terms was wide. Portugal accounted for 9.0% of imports, Italy for 7.3%, and Spain for 7.0%. Together, these three countries formed only 23.3% of total flows, with a substantial 76.7% coming from many other countries.

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

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

Imports in value, M $ US

After a two-year decline, grape wine imports into South America have increased. In 2020, imports reached 640 million US dollars, indicating a 7.3% rise compared to the previous year. The lowest value was recorded in 2019 at 597 million US dollars, while the largest decline of 5.8% occurred in 2018.

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

From 2017 to 2020, the import partner landscape for grape wine in value terms was wide. Portugal accounted for 9.3% of imports, Italy for 9.1%, and France for 9.0%. Together, these three countries formed only 27.4% of total flows, with a substantial 72.6% supplied by many other countries.

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

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