Wine and wine products market in Paraguay

Earlier Report Observations

The wine market in Paraguay, measured by volume, stood at 43 781 t in 2018 but declined to 41 999 t in 2019 and further to 38 960 t in 2020. This contraction was driven by the persistent inflow of illicit alcohol, estimated to capture 30-40% of the total alcohol market, which reduced legal sales. External economic factors such as a stronger US dollar and global inflation also raised the cost of imported wine, dampening volumes. Despite these pressures, the market diversified with the launch of premium Paraguayan wines by Bodega Giacometti in 2019 and the entry of Bebidas del Paraguay SA in 2020, which added mid-range international brands like Finca La Celia and Misiones de Rengo to its portfolio.

Market volume recovered to 43 870 t in 2021 before falling to 40 315 t in 2022 and sharply to 29 230 t in 2023. The premium segment became more competitive, with Wines and Spirits strengthening its market position through focused sales culture, while the economical table wine segment remained significant. Illicit consumption continued to constrain legal market growth. In 2023, dollar appreciation and global inflation increased costs, contributing to a drop in imports and overall volume. Uruguayan wine producers intensified promotional activities in Paraguay during this period. The Spanish company Focasa confirmed its market entry in 2024 with a US$1 million investment, indicating new player interest for the coming years.

Production wine and wine products in Paraguay

In kind, 2018-2021, t

Top producers of wine and wine products, 2018-2021

World map of production of wine and wine products, 2018-2021

Paraguay's wine and wine products production rebounded in 2021 after two consecutive years of decline. The country produced 1 981 tonnes, marking a 16.7% increase compared to the previous year. Looking at the period from 2018 to 2021, overall production grew by 4.5%, with an average annual growth rate of 1.5%. The lowest production level was recorded in 2020 at 1 698 tonnes, which also saw the steepest decline of 8.1% during this timeframe.

Annual dynamics of production in Paraguay in kind, 2018-2021, t

Exports wine and wine products from Paraguay

Exports in kind, t

In 2021, Paraguay's cross-border shipments of wine and wine products totaled 169 tonnes, representing a slight decrease of 1.0% from 2020. Over the four-year period from 2018 to 2021, exports increased by 5%, with a compound annual growth rate of 1.6%. The lowest export volume was recorded in 2019 at 149 tonnes, which also experienced the largest decline of 7.6%. In contrast, exports peaked in 2020 at 171 tonnes, showing the highest increase of 14.8%.

Annual dynamics of product's exports from Paraguay in kind, 2018-2021, t

From 2018 to 2021, the Netherlands, France, and Argentina consistently dominated Paraguay's export structure for wine and wine products in volume terms. The Netherlands accounted for 47.9% of exports, followed by France at 11.0%, and Argentina at 7.6%. Together, these three countries represented 66.4% of Paraguay's total export flows during this period.

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

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

Exports in value, M $ US

The market exhibited significant volatility during these years. Paraguay's wine and wine products exports in value terms reached their lowest point in 2019 at 0.3 million US dollars, which also saw the largest decline of 15.0%. By 2021, exports surged to 1.1 million US dollars, representing a dramatic 122.4% increase compared to 2020 and marking the peak value. The difference between the 2019 low and the 2021 high was substantial, with a 3.9-fold gap.

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

Throughout the 2018–2021 period, Brazil, the Netherlands, and France formed the core of Paraguay's wine and wine products exports in value terms. Brazil led with 30.0% of exports, followed by the Netherlands at 22.3%, and France at 18.3%. Collectively, these three markets accounted for 70.6% of Paraguay's total export value during this timeframe.

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

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

Imports wine and wine products to Paraguay

Imports in kind, t

Paraguay's imports of wine and wine products in volume terms increased in 2021, ending a two-year downward trend. Imports amounted to 42 058 tonnes, showing a significant year-on-year rise of 12.4%. The lowest import volume was recorded in 2020 at 37 433 tonnes, which also experienced the steepest decline of 7.1% during this period.

Annual dynamics of product's imports to Paraguay in kind, 2018-2021, t

Between 2018 and 2021, Argentina, Brazil, and Chile were the primary sources for Paraguay's wine and wine products imports in volume terms. Argentina accounted for 46.4% of imports, Brazil for 26.5%, and Chile for 14.2%. Together, these three countries supplied 87.1% of Paraguay's total import flows during this period.

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

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

Imports in value, M $ US

Paraguay's imports of wine and wine products in value terms rebounded strongly in 2021 after two years of decline. The country imported 84.2 million US dollars worth of products, representing a dramatic 42.6% increase compared to the previous year. However, looking at the broader period from 2018 to 2021, imports decreased by 16.8%, equating to an average annual decline of 5.9%. The lowest import value was recorded in 2020 at 59.1 million US dollars, which also saw the largest decline of 31.1%.

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

From 2018 to 2021, three key markets—Argentina, the United Kingdom, and Chile—dominated Paraguay's wine and wine products imports in value terms. Together, these countries accounted for 66.6% of Paraguay's total import value during this period.

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

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