Wine - South America

The Wine market in South America has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in South America have shifted towards a greater appreciation for wine, with consumers increasingly seeking out high-quality and unique wine offerings. This has led to a growing demand for premium and artisanal wines, as well as wines from specific regions and grape varieties. Additionally, there has been a rise in the popularity of organic and sustainable wines, as consumers become more conscious of the environmental and health impacts of their purchasing decisions. Trends in the South American wine market reflect global trends, but with a unique regional twist. One notable trend is the increasing popularity of sparkling wines, particularly in Brazil and Argentina. This can be attributed to changing consumer lifestyles and preferences, as well as the influence of international events such as the World Cup and the Olympics. Another trend is the growing interest in wine tourism, with more and more consumers visiting vineyards and wineries to learn about the wine-making process and taste different varieties. This trend has been particularly prominent in Chile and Uruguay, where wine tourism has become a significant source of revenue for local economies. Local special circumstances also play a role in the development of the wine market in South America. For example, the favorable climate and soil conditions in regions such as Mendoza in Argentina and Colchagua Valley in Chile have made them ideal for grape cultivation and wine production. This has allowed these countries to establish themselves as major players in the global wine market, with their wines gaining recognition and accolades on the international stage. Additionally, government policies and regulations, such as tax incentives and trade agreements, have played a role in promoting the growth of the wine industry in some South American countries. Underlying macroeconomic factors have also contributed to the development of the wine market in South America. Economic growth and rising disposable incomes in countries such as Brazil and Colombia have led to an increase in wine consumption, as consumers have more purchasing power to spend on luxury goods. Furthermore, the growing middle class in South America has created a larger consumer base for wine, as more people are able to afford and appreciate wine as part of their lifestyle. In conclusion, the Wine market in South America is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. As consumers in the region become more knowledgeable and discerning about wine, the market is expected to continue to expand and diversify in the coming years.

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.