The model for building and maintaining a successful wine business used to be simple: make good wine, market it intelligently and watch your sales grow.
That is a slight oversimplification, but not by too much. Between 1960 and 2010 in the U.S. alone—what quickly became the world’s biggest and most powerful wine market—wine consumption rose from 0.90 gallons per person or 53 million total table wine gallons to 2.57 gallons per person, or 707 total table wine gallons, according to the Wine Institute.
That’s an increase of 1,233.96% in total wine consumption over 50 years. But.
Then the growth levelled off. Last year, the U.S. consumed 2.54 gallons per person, for a total of 717 million overall, down from 2.65 gallons and 764 gallons respectively in 2023.
Sales became a lot less predictable. Sometimes a grape or wine style would become a Zeitgeist darling, and producers in that sector would reap the benefits. (But how long will the party last? It’s often boom one year, bust the next).
Producers look to new markets
In recent years, it has become increasingly clear that it’s essential for vintners to not just tweak marketing tactics to appeal more to certain demographics in established markets like Europe and the U.S. (especially amid tariff challenges), but to seek out new markets in Africa, India, and also, certain pockets of Latin America.
Broadly speaking, there’s a “strong demand for expressive, fruit-forward styles,” says Kamara Snow, vice president and general manager of Southern Glazer’s Wine & Spirits Travel Retail Sales and Export Division. “We’re seeing robust growth in wine exports across Central and South America and Mexico, driven by evolving consumer preferences, expanding middle class demographics and a rising appetite for premium and boutique wine experiences.”
Spanish producers find cultural alignment
Amid a downward consumption trend worldwide that has “intensified recently,” Enrique Murillo, international managing director at González Byass, based in Jerez de la Frontera, Spain, says that Latin America has become a growth opportunity, especially for them and other Spanish producers “due to the similarities in culture and language. Many Spanish wineries are looking for opportunities in Latin America due to declines in traditional markets.”
González Byass has had a presence in Latin America since the 1970s, and Murillo reports “significant growth in sales in Chile, the Dominican Republic, Colombia, Brazil and Ecuador in the past five years.”
There is a clear evolution, but there is a lot of work to do.
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Tariffs pose hurdles but interest is rising
“In Brazil, which has a population of 212 million, consumption per capita is less than 2 litres a year,” Murillo says. “High tariffs mean that imported wines are three times the price of locally produced wines. That makes it difficult to attract new consumers among the middle class.”
But despite the challenges, Murillo notes that there is an increasing interest in the culture of wine, especially among female and younger consumers.
Murillo is bullish on sales in the future, especially as the EU negotiates free trade treaties.
“There is optimism with regards to the Mercosur Agreement, a landmark free trade deal between the E.U. and the Mercosur bloc, Argentina, Brazil, Paraguay and Uruguay,” he says, noting that loosening restrictions in Brazil could be especially helpful.
Sparkling wine brands enjoy double-digit growth
Enore Ceola, CEO of Freixenet Mionetta USA, and EVP North America, notes that exports have surged across Latin America, with double-digit growth in Mexico, South America, Puerto Rico and the Dominican Republic.
“Similar to what we saw in the U.S. 10 to 15 years ago, consumers there are realising that every occasion is a good occasion to pop a bottle of Freixenet, Segura Viudas, Mionetto or other sparkling wines,” Ceola says.
Producers adapt to volatile emerging markets
Spanish producers aren’t the only ones seeking and finding growth in Latin America.
