Argentine Wine Consumption Plunges 18% in 2025 Despite Record International Awards and Rising Premium Exports

The year 2025 has been marked by a significant drop in wine consumption in Argentina, despite the country’s wines receiving numerous international awards for quality. This paradox is shaping the outlook for both producers and consumers as the industry faces economic challenges at home and shifting trends abroad.

According to Magdalena Pesce, CEO of Wines of Argentina, the sector experienced a forced reconfiguration this year due to the economic situation. She reports a contraction in per capita wine consumption of nearly 18% during the peak of the recession. The decline was most pronounced in entry-level wines and boxed formats, which suffered from reduced purchasing power. However, mid- and high-end wines showed notable resilience. Pesce explains that consumers are buying less but choosing better, seeking trusted brands that guarantee quality.

Wine journalist Fabricio Portelli describes 2025 as a bipolar year for Argentine wine. Sales fell in line with lower consumption and stagnant incomes, driven by a combination of domestic economic turmoil, global instability influenced by geopolitical issues, and generational shifts toward healthier lifestyles. Younger consumers are less likely to choose alcoholic beverages for leisure, favoring fitness and wellness instead. Yet, on the other hand, Argentine wines achieved unprecedented international recognition this year. Several received perfect scores from critics, including some white wines—a rarity. Wine Enthusiast named an Argentine winery as the best in the New World again, and Forbes included 17 Argentine wineries among its list of the world’s top 50. Portelli sees this as evidence of Argentina’s strong position in terms of quality, even as domestic sales struggle.

Fernando Musumeci, named Argentina’s Best Communicator 2025 by the Wine Industry Awards (IWC), calls this year a difficult paradox. While quality, diversity, and innovation in winemaking are at their peak, consumption has dropped sharply both domestically and internationally. Musumeci points out that over the past decade, wine prices have doubled or tripled in dollar terms while incomes have not kept pace. This has shrunk the market and created tough conditions for small producers who depend on every sale to sustain their artisanal projects. He worries most about these small players who raise standards each year but face saturated markets and competition from larger companies selling below cost to move inventory.

Ivana Piñar, Head Sommelier at Hotel Madero in Buenos Aires, notes that while overall domestic volume remained stable in 2025, the market became highly segmented. Some consumers continue to seek value in entry-level wines, while others buy less but opt for greater diversity and higher quality. White and rosé wines grew strongly—driven by cooler regions and more precise harvests—and there was a clear shift toward fresher styles with lower alcohol content. Piñar also highlights the emergence of low-alcohol and alcohol-free wines as a new category responding to global moderation trends.

Marisol de la Fuente, recently named “Wine Communicator of the Year 2025” by the International Wine & Spirit Competition (IWSC), observes that wineries made significant efforts to innovate and adapt to a more informed and demanding consumer base. Even traditional producers began transforming their styles and communication strategies to stay relevant.

On the export front, Pesce says that global wine trade remains challenging with an accumulated volume drop of about 9% through October 2025—mainly due to bulk wine exports falling off. However, she points out that value is up: premium segments (over $60 FOB per case) grew nearly 9%, especially thanks to demand from Brazil. Argentina is exporting less wine by volume but generating more value per shipment and building a more sophisticated national brand.

De la Fuente adds that international markets are also seeing declines in consumption as global habits change toward drinking less but better-quality products with lower alcohol content or ready-to-drink options. These trends mirror those seen domestically: moderation, conscious enjoyment, and product functionality are now key factors.

Despite these challenges, 2025 brought important milestones for Argentine wine. Wines of Argentina launched “The Wine for Now,” a new global branding strategy aimed at making Argentine wine more accessible and spontaneous—already showing positive results in the U.S., Brazil, and Canada. The organization also advanced sustainability efforts through Red Sustenta Vitis, a program funded by the European Union that supports small- and medium-sized wineries with technical assistance and certifications related to carbon footprint and sustainable practices.

Portelli highlights major releases this year of Cabernet Sauvignon blends aimed at moving beyond Malbec in demanding markets. There is also growing confidence in Criolla grapes as authentic Argentine varieties and consolidation of emerging terroirs like La Quebrada de Humahuaca or Valle Azul in Río Negro.

De la Fuente notes that wineries embraced change not only in their products but also in how they communicate with consumers—shifting away from traditional models toward more contemporary approaches aligned with current market trends.

Piñar observes that cold-climate regions solidified their reputation for quality whites and lighter reds this year. Alternative varieties such as Chenin Blanc, Verdejo, Semillón, and modern Criollas gained traction among consumers who also welcomed subtler aging techniques using concrete or amphorae instead of heavy oak.

Looking ahead to 2026, industry leaders expect continued challenges but see reasons for cautious optimism if macroeconomic stability improves as projected—with lower inflation rates around 21% annually and reforms supporting competitiveness. Pesce believes operational efficiency will be crucial for wineries next year; new trade agreements could open export opportunities if realized.

Portelli warns that high retail inventories will make early 2026 difficult for producers who may have to leave grapes unharvested as a regulatory measure to balance supply—a move likely to hurt growers financially. However, he expects consumer confidence to recover later in the year if economic conditions stabilize.

Musumeci predicts further consolidation within the industry: mass-market wines may need to reduce volumes while high-quality offerings with unbeatable value will become decisive factors for survival. He sees special projects with limited production facing pressure to maintain impeccable quality while communicating honestly with new audiences.

De la Fuente anticipates an even more competitive landscape where wineries must connect authentically with consumers’ real needs rather than relying on tradition or expertise alone. She believes success will depend on making wine approachable for everyday enjoyment rather than maintaining an exclusive or aspirational image.

Pesce cites research suggesting that “retro rejuvenation”—modernizing tradition through emotional connection—will be important next year alongside “intentionally sensory” experiences sought by younger generations who prioritize health and sustainability.

De la Fuente argues that understanding consumer motivations will be key since buyers now decide what they want rather than following what wineries dictate.

Portelli sees opportunities mainly for mid- and high-end wines with greater margins and added value as consumers become more selective about what they drink.

Musumeci expects continued interest in authentic wines reflecting their origins—especially from small producers working with historic or rediscovered grape varieties—even if these do not drive mass consumption yet.

As Argentina’s wine industry navigates another challenging year ahead, those committed to quality, consistency, and honest communication are expected to find their place amid ongoing changes in both local and global markets.