South America Wine - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The south america wine market was valued at USD 7.67 billion in 2025 and is expected to reach USD 7.90 billion in 2026, with projections indicating it will grow to USD 9.17 billion by 2031, registering a CAGR of 3.03% during the forecast period. This report is Segmented by Wine Type (Still Wine, Sparkling Wine, Fortified/Dessert Wine, and Other Wine Types), Color (Red Wine, Rose Wine, and White Wine), End User (Men and Women), Distribution Channel (On-Trade and Off-Trade), and Geography (Brazil, Argentina, and More). The Market Forecasts are Provided in Terms of Value (USD) and Volume (Litres).

South America Wine Market Trends and Insights

Growing domestic tourism and wine-route programmes

Wine tourism is increasingly being utilized as a strategy by producers to mitigate the impact of rising climate-related costs and currency fluctuations. In 2024, Mendoza welcomed over 1.5 million visitors, generating approximately USD 300 million in additional revenue through activities such as tastings, lodging, and direct sales. This growth highlights the region's ability to attract both domestic and international tourists, driven by its reputation for high-quality wines and scenic landscapes. In Chile, the Colchagua and Casablanca valleys have established formal wine-route consortia, combining vineyard tours with culinary experiences. These initiatives capitalize on Chile's reputation for sustainability, offering a competitive edge over traditional Old World wine regions. By integrating eco-friendly practices and promoting local gastronomy, these regions are enhancing their appeal to environmentally conscious consumers. The strategic benefit is evident: direct-to-consumer channels reduce reliance on distributor margins and foster brand loyalty, providing producers with protection against retail price competition, particularly in markets where off-trade discounting is diminishing per-bottle profitability.

Growing interest in premium and boutique wines

Premiumization is gaining momentum, even as mass-market segments experience volume declines. Brazil's craft wine movement, primarily based in Rio Grande do Sul's Serra Gaúcha region, is drawing investment from urban entrepreneurs who view boutique wineries as lifestyle ventures with export opportunities to niche markets in the United States and Europe. This movement is characterized by small-scale production, a focus on high-quality grapes, and an emphasis on unique, handcrafted wines that appeal to discerning consumers. Chile's export strategy has shifted toward bottles priced above USD 10, with Carmenere and Syrah emerging as key varieties, as producers move away from bulk shipments that rely solely on cost competitiveness. This strategic pivot includes targeted marketing campaigns, partnerships with international distributors, and efforts to highlight the premium quality of Chilean wines. This trend highlights a broader development: as middle-income groups grow across South America, wine is evolving from a commodity to a status symbol, benefiting brands that focus on storytelling, terroir differentiation, and engagement with sommeliers.

Currency volatility impacting imported inputs

Currency volatility poses a significant challenge for the South American wine market, particularly for producers dependent on imported inputs such as barrels, machinery, yeast cultures, and specialized packaging materials. Fluctuating exchange rates lead to unpredictable increases in production costs, reducing profit margins and complicating budgeting and long-term planning for wineries. Smaller and mid-sized producers are particularly affected, as they often lack access to hedging mechanisms or viable local alternatives for essential imported inputs. This financial instability can hinder investment in innovation, expansion, or premium wine production, thereby slowing growth in both domestic and export markets and impacting the global competitiveness of South American wines.

Other drivers and restraints analyzed in the detailed report include:

• Adoption of sustainable and organic wines
• Ethical packaging and convenience Formats
• High competition from beer and spirits

Segment Analysis

Still wine maintained a dominant market share of 78.71% in 2025, driven by its widespread use in everyday consumption, restaurant offerings, and export activities. However, sparkling wine is expected to grow at a compound annual growth rate (CAGR) of 3.95% through 2031, indicating a shift toward celebratory and premium consumption occasions. Fortified and dessert wines remain niche products, primarily concentrated in regions influenced by Portuguese traditions, such as Brazil and Argentina's Salta province. These wines, including late-harvest Torrontés and fortified Malbecs, cater to collectors and sommeliers rather than the broader mass market.

Additionally, other wine types, such as pét-nat and orange wines, are gaining traction in boutique portfolios as producers explore natural fermentation and extended skin contact to stand out in competitive retail markets. Historical context highlights that South America's sparkling wine tradition developed later than Europe's. However, rising disposable incomes and the increasing acceptance of wine as a lifestyle product are narrowing this gap. The strategic implication is that the growth of sparkling wine is driven more by the expansion of consumption occasions than by replacing still wine. Producers who position sparkling wine as an everyday indulgence rather than a product reserved for special events can tap into incremental consumption opportunities without significantly impacting still wine sales.

Red wine held 56.10% of the market share in 2025, driven by Argentina's Malbec exports and Chile's shipments of Carmenere and Cabernet Sauvignon. However, rosé wine, with a compound annual growth rate (CAGR) of 5.09% through 2031, highlights a trend of premiumization that is influencing producer portfolios and retail assortments. While white wine lags behind red and rosé in growth, it remains a critical component for producers aiming to maintain portfolio balance and achieve geographic diversification. Argentina's Torrontés and Chile's Sauvignon Blanc dominate white wine exports, particularly to tropical markets in Central America and the Caribbean, where the climate favors chilled, aromatic styles over tannic red wines.

In Brazil, white wine production is concentrated in Rio Grande do Sul, where Italian immigrant communities have historically cultivated Trebbiano and Moscato. Recent plantings of Chardonnay and Riesling indicate a shift toward international varieties that can command higher export premiums. The segmentation by wine color reflects a broader strategic dynamic: red wine continues to deliver volume and margins in established markets, while rosé and white wines present growth opportunities in emerging demographics and occasions where traditional red wines face cultural or climatic challenges.

Complete Report Scope:

• By Wine Type
  • Fortified/Dessert Wine
  • Still Wine
  • Sparkling Wine
  • Other Wine Types
• By Color
  • Red Wine
  • White Wine
  • Rosé Wine
• By End User
  • Men
  • Women
• By Distribution Channel
  • On-Trade
  • Off-Trade
    • Specialty/Liquor Stores
    • Other Off-Trade Channels
• By Geography
  • Brazil
  • Argentina
  • Colombia
  • Chile
  • Peru
  • Rest of South America

List of Companies Covered in this Report:

• Concha y Toro
• Viña Santa Rita
• Bodega Catena Zapata
• Viña Cono Sur
• VSPT Wine Group (Viña San Pedro)
• Grupo Penaflor (Bodega Trapiche)
• Bodega Norton
• Salentein
• Bodegas Garzón
• Bodega Montes
• Bodega Lapostolle
• Cooperativa Vinícola Aurora
• Miolo Wine Group
• Vinícola Salton
• Casa Valduga
• Finca Flichman
• Bodega Zuccardi
• Vinícola Santa Helena
• Bodega Luigi Bosca
• Bodega Tamaya

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support