MERCOSUR: Wine Market 2024

Wine Market Size in MERCOSUR

After two years of decline, the MERCOSUR wine market increased by 22% to $X in 2021. Over the period under review, consumption, however, recorded a relatively flat trend pattern. Over the period under review, the market attained the peak level at $X in 2018; however, from 2019 to 2021, consumption stood at a somewhat lower figure.

Wine Production in MERCOSUR

In value terms, wine production soared to $X in 2021 estimated in export price. Overall, production, however, showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2017 when the production volume increased by 21%. The level of production peaked at $X in 2018; however, from 2019 to 2021, production remained at a lower figure.

Wine Exports

Exports in MERCOSUR

In 2021, after two years of growth, there was decline in shipments abroad of wine, when their volume decreased by -2.2% to X litres. Over the period under review, exports, however, continue to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2013 when exports increased by 8.3%. As a result, the exports attained the peak of X litres; afterwards, it flattened through to 2021.

In value terms, wine exports stood at $X in 2021. Overall, exports, however, continue to indicate a relatively flat trend pattern. Over the period under review, the exports attained the peak figure at $X in 2018; afterwards, it flattened through to 2021.

Exports by Country

Chile was the main exporter of wine in MERCOSUR, with the volume of exports resulting at X litres, which was approx. 74% of total exports in 2021. It was distantly followed by Argentina (X litres), creating a 25% share of total exports.

Chile was also the fastest-growing in terms of the wine exports, with a CAGR of +1.7% from 2012 to 2021. Argentina (-2.7%) illustrated a downward trend over the same period. While the share of Chile (+8.7 p.p.) increased significantly in terms of the total exports from 2012-2021, the share of Argentina (-7.9 p.p.) displayed negative dynamics.

In value terms, Chile ($X) remains the largest wine supplier in MERCOSUR, comprising 70% of total exports. The second position in the ranking was taken by Argentina ($X), with a 29% share of total exports.

From 2012 to 2021, the average annual growth rate of value in Chile amounted to +1.1%.

Export Prices by Country

In 2021, the export price in MERCOSUR amounted to $X per litre, picking up by 10% against the previous year. Overall, the export price saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2014 when the export price increased by 11% against the previous year. Over the period under review, the export prices hit record highs at $X per litre in 2018; however, from 2019 to 2021, the export prices failed to regain momentum.

Average prices varied somewhat amongst the major exporting countries. In 2021, amid the top suppliers, the country with the highest price was Argentina ($X per litre), while Chile totaled $X per litre.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Argentina (+1.5%).

Wine Imports

Imports in MERCOSUR

In 2021, imports of wine in MERCOSUR expanded sharply to X litres, with an increase of 11% against the previous year's figure. Total imports indicated measured growth from 2012 to 2021: its volume increased at an average annual rate of +4.9% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, imports increased by +24.2% against 2017 indices. The pace of growth appeared the most rapid in 2017 when imports increased by 29% against the previous year. The volume of import peaked in 2021 and is likely to see steady growth in the near future.

In value terms, wine imports surged to $X in 2021. Total imports indicated a moderate increase from 2012 to 2021: its value increased at an average annual rate of +4.0% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, imports increased by +28.1% against 2019 indices. The pace of growth appeared the most rapid in 2017 with an increase of 32% against the previous year. The level of import peaked in 2021 and is expected to retain growth in the near future.

Imports by Country

Brazil dominates imports structure, finishing at X litres, which was near 62% of total imports in 2021. Paraguay (X litres) took the second position in the ranking, followed by Colombia (X litres), Peru (X litres) and Ecuador (X litres). All these countries together took near 31% share of total imports. Venezuela (X litres) and Chile (X litres) took a relatively small share of total imports.

Imports into Brazil increased at an average annual rate of +8.1% from 2012 to 2021. At the same time, Chile (+21.3%), Ecuador (+9.2%), Colombia (+4.6%) and Peru (+3.6%) displayed positive paces of growth. Moreover, Chile emerged as the fastest-growing importer imported in MERCOSUR, with a CAGR of +21.3% from 2012-2021. Paraguay experienced a relatively flat trend pattern. By contrast, Venezuela (-12.4%) illustrated a downward trend over the same period. Brazil (+15 p.p.), Chile (+1.7 p.p.) and Ecuador (+1.5 p.p.) significantly strengthened its position in terms of the total imports, while Paraguay and Venezuela saw its share reduced by -5.3% and -10.3% from 2012 to 2021, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Brazil ($X) constitutes the largest market for imported wine in MERCOSUR, comprising 66% of total imports. The second position in the ranking was taken by Colombia ($X), with a 10% share of total imports. It was followed by Paraguay, with a 5.9% share.

From 2012 to 2021, the average annual growth rate of value in Brazil amounted to +5.8%. In the other countries, the average annual rates were as follows: Colombia (+4.8% per year) and Paraguay (+0.2% per year).

Import Prices by Country

The import price in MERCOSUR stood at $X per litre in 2021, rising by 6.6% against the previous year. Overall, the import price, however, saw a relatively flat trend pattern. The growth pace was the most rapid in 2013 an increase of 8.3%. Over the period under review, import prices reached the maximum at $X per litre in 2014; however, from 2015 to 2021, import prices failed to regain momentum.

There were significant differences in the average prices amongst the major importing countries. In 2021, amid the top importers, the country with the highest price was Chile ($X per litre), while Paraguay ($X per litre) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Ecuador (+0.7%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform