Wine - Uruguay

Uruguay, a small country located in South America, has seen a significant development in its wine market in recent years.

Customer preferences: Uruguayan consumers have shown a growing interest in wine, both as a beverage for social occasions and as a cultural symbol. Wine has become increasingly popular among younger generations, who are embracing the sophistication and elegance associated with it. Additionally, the rising health consciousness among consumers has led to a shift towards wine as a healthier alternative to other alcoholic beverages.

Trends in the market: One of the key trends in the wine market in Uruguay is the increasing consumption of premium and high-quality wines. Consumers are willing to pay a premium for wines that are produced using traditional methods and have unique characteristics. This trend can be attributed to the growing appreciation for the art of winemaking and the desire to experience different flavors and aromas. Another trend in the market is the rise of wine tourism. Uruguay's picturesque vineyards and wineries have become popular tourist destinations, attracting both domestic and international visitors. This trend has not only boosted wine sales but also contributed to the overall growth of the tourism industry in the country.

Local special circumstances: Uruguay has a favorable climate and soil conditions for wine production. The country's cool climate and mild temperatures create optimal conditions for growing grapes, especially the Tannat grape, which is the flagship grape variety of Uruguay. The unique terroir of Uruguay, combined with the expertise of local winemakers, has resulted in the production of high-quality wines that are gaining recognition both domestically and internationally.

Underlying macroeconomic factors: Uruguay's stable economy and increasing disposable income have played a significant role in the development of the wine market. As consumers have more purchasing power, they are able to afford higher-priced wines and explore different varieties. Additionally, the government has implemented policies to promote the wine industry, such as tax incentives and support for wine exports, which have further stimulated growth in the market. In conclusion, the wine market in Uruguay is experiencing a positive growth trajectory due to changing consumer preferences, the emergence of premium wines, the rise of wine tourism, favorable local conditions for wine production, and a supportive macroeconomic environment. As the market continues to evolve, it presents opportunities for both domestic and international wine producers to capitalize on the growing demand for high-quality wines in Uruguay.

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.