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Brazilian wine market will grow 7% annually

The wine market in Brazil will grow at a rate of 7% per year over the next seven years, according to projections highlighted by ICEX, the Spanish trade and investment promotion body.

Brazil is the fifth largest country in the world in terms of territory and has the sixth largest population in the world. As of December 31, 2020, the country had an estimated population of 211.7 million people, according to IBGE figures.

The wine market in Brazil has an estimated total consumption of around 430 million liters per year.

So according to the projections referred to by ICEX, it is expected to reach 645 million liters consumed in 2025.

Brazil is the largest wine market in Latin America and, therefore, is increasingly a target market for wineries in the world.

Although its population suggests a huge market full of opportunities for exporters, the real wine market is made up of barely 30 million regular consumers, who have sufficient purchasing power and are mostly located in the southeastern and southern regions of the country.

Wine market

Despite its high volume of imports, we must not forget that Brazil is also a wine-producing country.

So much so that, of the total wine consumed in the country, approximately 69% is domestically produced, with only 31% imported wine, according to ICEX.

However, these numbers hide an important nuance, and that is that around 85% of Brazilian wine production is made with grapes that are not of the vitis vinifera variety.

These wines are referred to by Brazilian legislation as table wines, or wines of a lower quality than the so-called fine wines, which are made with the vitis vinifera variety and compete against all Spanish and imported wines.

As for global imports of wine in Brazil, it is a market of just over 350 million euros, for a volume that exceeds 146 million liters.

The historical series of evolution of these imports allows us to conclude that it is an emerging market, with a growth trend.

Import levels in value, despite the health crisis, have grown in 2020, although at a slower rate than the total imported volume (which increased by almost double).

In other words, in recent years it has been seen how more wine was imported into Brazil, but at a somewhat lower price, with importers clearly looking for a price-competitive wine.

 

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