Wine - Portugal

Portugal, known for its rich history, beautiful landscapes, and delicious cuisine, is also gaining recognition for its wine industry. The Wine market in Portugal has been experiencing significant growth in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Portuguese consumers have developed a growing appreciation for wine, both domestically produced and imported. They are increasingly seeking high-quality wines that offer a unique taste and reflect the terroir of the region. Additionally, there is a rising demand for organic and sustainable wines, as consumers are becoming more conscious of their environmental impact. This shift in customer preferences has led to an increase in the production and consumption of premium wines in Portugal.

Trends in the market: One of the notable trends in the Portuguese wine market is the growing popularity of indigenous grape varieties. Portugal is home to a wide range of unique grape varieties, some of which are not found anywhere else in the world. These indigenous grapes, such as Touriga Nacional and Alvarinho, are gaining recognition for their distinct flavors and aromas. As a result, winemakers are focusing on these grape varieties, leading to the production of wines that showcase the country's rich viticultural heritage. Another trend in the market is the increasing emphasis on wine tourism. Portugal's picturesque vineyards and wineries have become popular tourist destinations, attracting both domestic and international visitors. Wine tours and tastings offer a unique experience for tourists, allowing them to explore the country's wine regions, learn about the winemaking process, and sample a variety of wines. This trend has contributed to the growth of the wine industry, as wineries have expanded their facilities to accommodate tourists and offer a range of wine-related activities.

Local special circumstances: Portugal's unique climate and diverse terroir provide ideal conditions for grape cultivation. The country benefits from a combination of warm Mediterranean and Atlantic influences, creating a microclimate that is favorable for viticulture. This diversity in climate and soil types allows winemakers to produce a wide range of wines with distinct characteristics. From the cool, crisp whites of Vinho Verde to the bold, full-bodied reds of the Douro Valley, Portugal offers a diverse selection of wines that cater to different tastes and preferences.

Underlying macroeconomic factors: Portugal's wine industry has also been positively influenced by favorable macroeconomic factors. The country's stable economic growth and increasing disposable income have contributed to the rise in wine consumption. Additionally, Portugal's membership in the European Union has facilitated trade and export opportunities, allowing Portuguese wines to reach a wider international market. The country's reputation for producing high-quality wines at affordable prices has made it an attractive choice for consumers both domestically and abroad. In conclusion, the Wine market in Portugal is experiencing growth and development due to various factors. Customer preferences for high-quality, unique wines, the emphasis on indigenous grape varieties, the rise of wine tourism, favorable local circumstances, and underlying macroeconomic factors all contribute to the positive trajectory of the Portuguese wine industry. With its rich viticultural heritage and commitment to quality, Portugal is poised to continue its success in the global wine market.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.