Grape wine spirits market in Portugal

Earlier Report Observations

Between 2018 and 2021, the Portuguese grape wine spirits market contracted from 53.2 million liters to 37.9 million liters. This decline aligned with a shift in consumer habits toward lighter wines like whites, rosés, and sparklers, reducing demand for stronger spirits. Concurrently, rising wine export values diverted product away from domestic distillation.

Market volume rebounded sharply to 57.2 million liters in 2022. This growth was driven by legislative discussions on potentially mandating the exclusive use of grape spirit from the Douro region for Port wine production, which stimulated output. The period also saw increased production and commercialization of organic and high-quality wines, including spirits with vegan certification.

By 2023-2024, the market volume fell to 35.7 million liters. Contributing factors included growing wine imports, which pressured local spirit production, and a government study deeming the Douro spirit mandate unfeasible. An estimated 8% drop in national wine production for the 2024/25 campaign further constrained the raw material base for spirit distillation.

Production grape wine spirits in Portugal

In value, 2018-2021, K $ US

Portugal's grape wine spirits production value rebounded in 2021 after two years of contraction. Output reached 49 403 K $ US, marking a significant 10.5% increase compared to the previous year. Looking at the period from 2018 to 2021, production declined by 4.8%, which translates to an average annual decrease of 1.6%. The lowest value was recorded in 2020 at 44 705 K $ US, with that year also seeing the largest decline of 10.7%.

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

In kind, 2018-2021, K l

In 2021, Portugal produced 47 706 K l of grape wine spirits, showing a modest increase of 3.7% from the previous year. Over the 2018-2021 period, production grew by 3%, with a compound annual growth rate of 1.0%. The lowest volume was recorded in 2020 at 46 014 K l, while the highest was in 2019 at 48 835 K l. The largest decline occurred in 2020 at 5.8%, and the largest increase was in 2019 at 5.4%.

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

Exports grape wine spirits from Portugal

Exports in kind, K l

Portugal's grape wine spirits exports grew for the third consecutive year in 2021, reaching 11 349 K l, which represents a substantial 90.8% increase from the previous year. From 2018 to 2021, exports surged by 265.3%, averaging an annual growth rate of 54.0%.

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

Between 2018 and 2021, Spain remained the primary market for Portugal's grape wine spirits exports in volume terms, accounting for 75.4% of total flows. The remaining volume was distributed among various other destinations.

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, K $ US

Portugal's grape wine spirits export value continued its upward trend for the third year in a row in 2021, totaling 24 621 K $ US. This marked a 74.4% rise compared to the previous year. Over the 2018-2021 period, export value increased by 126.2%, with an average annual growth rate of 31.3%.

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

From 2018 to 2021, the main buyers of grape wine spirits from Portugal in value terms were Spain (56.8% of exports), France (6.8%), and the United States (6.0%). Together, these three markets accounted for 69.5% of total export value.

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 spirits to Portugal

Imports in kind, K l

Import volumes of grape wine spirits into Portugal showed significant volatility during this period. Levels fluctuated widely, with a 8.5-fold difference between the peak in 2018 and the low in 2020. In 2021, imports stood at 1 528 K l, reflecting a sharp 30.8% increase from the previous year. The lowest volume was recorded in 2020 at 1 168 K l, which also saw the largest decline of 82.9%.

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

During 2018-2021, the leading sources for grape wine spirits imports into Portugal in volume terms were Spain (44.2% of imports), Turkey (22.2%), and Cyprus (14.0%). These three countries together represented 80.4% of total import 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, K $ US

Portugal's grape wine spirits import value increased for the second consecutive year in 2021, reaching approximately 29 040 K $ US. This represented a 26.3% advance from the previous year. Between 2018 and 2021, import value grew by 27.2%, with an average annual rate of 8.4%. The lowest value was recorded in 2019 at 20 235 K $ US, which also experienced the largest decline of 11.4%.

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

Throughout 2018-2021, the core markets for grape wine spirits imports into Portugal in value terms were Spain (36.3% of imports), France (9.3%), and Turkey (8.2%). Collectively, these three accounted for 53.8% of total import value.

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

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