Grapes market in MERCOSUR

Earlier Report Observations

The grape market in MERCOSUR contracted from 4.2 million tons in 2018 to 3.5 million tons in 2020. This decline was accelerated in 2020 by the COVID-19 pandemic, which disrupted global supply chains and affected the availability of fresh grapes. In the preceding period, the industry had been characterized by consolidation among large producers and a growing focus on introducing new grape varieties for product differentiation.

Market volume recovered to 4.0 million tons in 2021. This rebound was supported by the increased adoption of precision viticulture technologies and post-harvest solutions, which improved grape quality and shelf life. Furthermore, rising consumer demand for products with enhanced traceability and labeling compliance helped facilitate access to new markets.

After the recovery, the market volume fell again, reaching 3.4 million tons in 2023. This latest contraction was partly driven by a global decrease in grape production due to extreme weather conditions, which constrained supply. Simultaneously, shifting consumer preferences towards seedless grapes and healthy convenience products contributed to a rise in market value, which reached $10.0 billion in 2023 despite the lower physical volume.

Production grapes in MERCOSUR

In kind, 2017-2020, K t

Top producers of grapes, 2017-2020

World map of production of grapes, 2017-2020

Grape production in MERCOSUR has declined for the second year in a row. In 2020, the region produced 3 590 thousand tons of grapes, representing a significant 12.3% drop compared to the previous year. Looking at the period from 2017 to 2020, production fell by 5.7%, which translates to an average annual decrease of 1.9%. The highest production level was recorded in 2018 at 4 272 thousand tons, when output increased by 12.2%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, K t

In value, 2017-2020, M $ US

The value of grape production in MERCOSUR has decreased for the third consecutive year. In 2020, grape output was valued at 7 475 million US dollars, which is 15.1% lower than in 2019. From 2017 to 2020, the production value declined by 30.3%, with a compound annual growth rate of -11.3%.

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

Exports grapes from MERCOSUR

Exports in kind, t

Following two years of growth, the volume of grapes exported from MERCOSUR declined. In 2020, exports totaled 79 332 tons, marking a slight decrease of 0.7% compared to 2019. Over the period from 2017 to 2020, exports increased by 47.1%, averaging an annual growth rate of 13.7%. The peak export volume was recorded in 2019 at 79 861 tons, while the largest annual increase occurred in 2018 at 47.8%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, t

Between 2017 and 2020, the Netherlands, the United Kingdom, and the United States were the largest buyers of grapes from MERCOSUR, accounting for 25.7%, 13.4%, and 9.4% of exports in kind, respectively. However, their combined share was only 48.5% of total exports, indicating a diversified market structure.

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

The value of grape exports from MERCOSUR has fallen for the second consecutive year. In 2020, exports amounted to 165.2 million US dollars, a decrease of 3.8% compared to 2019. From 2017 to 2020, export value increased by 8.7%, with an average annual growth rate of 2.8%. The highest value was recorded in 2018 at 179.0 million US dollars, when exports surged by 17.8%. In contrast, 2019 saw the largest decline at 4.1%.

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

From 2017 to 2020, the Netherlands, the United Kingdom, and the United States were the key export partners for MERCOSUR grapes in value terms, representing 26.4%, 15.5%, and 11.9% of exports, respectively. Together, they accounted for 53.7% of total export flows.

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

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

Imports grapes to MERCOSUR

Imports in kind, t

After two years of decline, the volume of grape imports into MERCOSUR increased. In 2020, imports reached 30 699 tons, a sharp rise of 47.7% compared to 2019. Over the period from 2017 to 2020, imports decreased by 44%, with a compound annual growth rate of -17.6%. The lowest import volume was recorded in 2019 at 20 789 tons, while the largest annual decline occurred in 2018 at 56.1%.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, t

Between 2017 and 2020, grape imports into MERCOSUR were spread across a wide range of markets. Chile, Peru, and Turkey were the top sources, accounting for 27.5%, 2.9%, and 2.3% of imports in kind, respectively. However, their combined share was only 32.7% of total imports, reflecting a highly diversified supply structure.

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

The value of grape imports into MERCOSUR has declined for the third year in a row. In 2020, imports were valued at 64.8 million US dollars, down 27.8% from the previous year. From 2017 to 2020, import value decreased by 36.7%, with an average annual decline of 14.1%.

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

During 2017–2020, grape imports into MERCOSUR in value terms were relatively evenly distributed. Chile, Peru, and South Africa were the leading sources, accounting for 28.2%, 3.2%, and 2.1% of imports, respectively. Together, they represented only 33.5% of total import flows.

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

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