Market Trends of South America Wine Industry
This section covers the major market trends shaping the South America Wine Market according to our research experts:
Rising Number of Local Vineyards
The South American wine market is being driven by the rising number of vineyards. Local customers are drawn to these independently owned businesses because they place an emphasis on novel flavors and brewing techniques. As a result, there are now an increasing number of these vineyards spread out across the region. Every wine-producing location in South America has a distinctive microclimate, preferred wine grapes, and wine-making methods. Nearly all of South America's wines are produced in the continent's four largest wine-producing nations, Argentina, Brazil, Chile, and Uruguay, and there are many excellent wine varieties and bottles accessible. On the South American continent, Argentina is the nation that produces the highest wine. The Uco Valley's vineyards are the ones with the highest planting heights in the entire Mendoza region. Due to the climate created by the high altitude, wine grapes with a refined taste, high levels of acidity, and a distinctive crispness and finish can be produced. According to wine America, Argentina had about 15,451 vineyards, Chile had 12,361 vineyards, Brazil had 1,100 vineyards, and Colombia had 284 vineyards in 2020. The top 14 of the 50 Vineyards are in South America, there is a strong motivation to tour the area's vineyards in order to visit these14 wineries in South America.
Argentina holds a significant market share
Argentina is one of the largest wine producers in the world. Mendoza is the most well-known and well-liked wine area in Argentina, there are several other areas including La Rioja, San Juan, and Salta. Argentina is known for a number of grape varietals, especially red ones like Malbec, owing to the ideal wine-growing environment. The rising disposable income among the young population coupled with the increasing trend of visiting pubs and bars in the country is primarily increasing consumer interest in spirits. There are about 2000 wineries located across the various wine regions of Argentina, many of which are open to tourists and provide wine tourism experiences. Argentina's wine tourism includes vineyard and winery tours, wine tastings, and accommodation. Argentina, which consumes 24 liters of wine per capita annually, is South America's top wine consumer in 2021, according to Land geist. As a result of the COVID-19 pandemic and subsequent lockdown, the alcohol consumption pattern has been drastically changed among consumers shifting from pubs and bars to their homes. With increasing at-home consumption, consumers in Argentina are more willing to pay a premium for high-quality wine. Therefore, the rising demand for diverse, innovative, and authentic high-end wine among millennials associated with changing consumer preference towards quality over quantity is increasing the demand for wine in Argentina and is expected to drive market growth in the forecast period.
