Wine - Argentina

Argentina, known for its rich wine-making tradition, has experienced significant growth in its wine market in recent years.

Customer preferences: Argentinian consumers have shown a growing interest in wine, with an increasing number of people incorporating it into their daily lives. Wine is no longer seen as a luxury item, but rather as a staple in households across the country. Argentine consumers have developed a taste for both red and white wines, with a preference for full-bodied and fruity flavors. They also value the quality and authenticity of the wine, often opting for locally produced varieties.

Trends in the market: One of the key trends in the Argentinian wine market is the rise of boutique wineries. These smaller-scale producers are gaining popularity among consumers who are seeking unique and artisanal wines. Boutique wineries often focus on producing limited quantities of high-quality wines, which appeals to the growing segment of wine enthusiasts and connoisseurs in Argentina. Another trend in the market is the increasing demand for organic and sustainable wines. As consumers become more conscious of their health and the environment, they are seeking wines that are produced using organic and sustainable farming practices. This trend is driven by a desire for healthier and more environmentally friendly products, and it presents an opportunity for wineries to differentiate themselves in the market.

Local special circumstances: Argentina's unique climate and geography contribute to the country's success in wine production. The high altitude of the vineyards, combined with the wide temperature range between day and night, creates optimal conditions for grape cultivation. This results in wines with intense flavors and aromas, making them highly sought after by both domestic and international consumers. The Argentinian wine industry has also benefited from government support and investment. The government has implemented policies to promote wine exports and has provided financial incentives to wineries to improve their production and distribution capabilities. This support has helped the industry to expand its reach and increase its competitiveness in the global market.

Underlying macroeconomic factors: The growth of the wine market in Argentina can also be attributed to favorable macroeconomic conditions. The country has experienced a period of economic stability and growth, which has increased disposable incomes and consumer spending power. As a result, more people are able to afford wine and are willing to explore different varieties and brands. Furthermore, the depreciation of the Argentine peso has made Argentinian wines more affordable for international consumers. This has led to an increase in wine exports, particularly to markets in North America and Europe. The combination of domestic and international demand has created a positive environment for the wine industry to thrive and expand. In conclusion, the wine market in Argentina is experiencing significant growth due to changing customer preferences, including a growing interest in boutique wines and organic/sustainable options. The country's unique climate and geography, along with government support and favorable macroeconomic conditions, have also contributed to the market's development. As the industry continues to evolve, there are opportunities for both domestic and international wineries to capitalize on the growing demand for Argentinian wines.

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.