Algarve Wine Producers Double to 60 as Region Sheds Poor Reputation and Hits Two Million Liter Record

Wines from the Algarve region in southern Portugal have overcome a long-standing reputation for poor quality and are now gaining recognition for their excellence. Industry leaders say the number of producers is growing each year, but the region still faces challenges in reaching export markets due to its small scale of production.

Pedro Valadas Monteiro, vice president of the Algarve’s Regional Coordination and Development Commission, said that two decades ago, few would have predicted the transformation in the region’s wine industry. The Algarve, once associated with low-quality wines, is now considered a successful wine-producing area despite being the second smallest in Portugal by volume. However, Monteiro noted that limited production remains a barrier to entering certain markets, especially exports, which require larger volumes. This challenge is heightened by the proximity of Alentejo, a neighboring region known for its vast wine output.

Monteiro explained that many tourism businesses in Portugal rely on centralized purchasing models based elsewhere in the country, favoring large quantities and standardized products. Despite this, he emphasized that the Algarve has managed to shed its negative image and is now recognized for producing quality wines.

Sara Silva, president of the Algarve Wine Commission (CVA), reported significant growth in the number of local producers. In 2017, there were about 30 producers; today there are 60. Most operate vineyards averaging four hectares, though some are larger. Silva said the focus is firmly on quality rather than quantity. The region aims to position itself as a producer of premium wines, which means careful selection of grape varieties and vineyard sites. This approach naturally limits productivity but supports higher standards.

Silva also pointed out that new investors are entering the market, including in less traditional areas such as Vilamoura and along the western coast near Aljezur and Vila do Bispo. She cautioned that wine production depends on natural factors and can vary from year to year. In 2024, the region reached a record output of two million liters, but this year’s harvest is expected to be about 15 percent lower.

The CVA president highlighted that all 60 current producers are active and have wines available on the market—a marked change from 15 years ago when only about 25 producers existed and not all had products for sale. Today’s figures reflect real production and a dynamic sector.

Luís Encarnação, mayor of Lagoa—home to the Algarve’s first wine cooperative established in the 1940s—praised the quality of local wines. He noted that Algarve wines have performed well in blind tastings and have won silver and gold medals at competitions in Portugal and across Europe. Encarnação said that when tasted without labels, Algarve wines stand out among Portugal’s best.

He also observed that it was once difficult to find Algarve wines on restaurant or hotel menus in the region. Now they are widely available, even in major supermarkets where dedicated sections showcase local labels.

Collaboration among regional organizations has helped link wine tasting with gastronomy and tourism. One example is “Entre pratos e vinhos,” an event running through the end of this month at about 20 participating venues. Organized by the CVA, this event pairs exclusive menus with certified regional wines and includes lodging experiences connected to wine tourism. The initiative aims to boost restaurants and hotels during the off-season.

The Algarve Wine Commission oversees certification and promotion for wines labeled with “Algarve” geographic indication as well as those from Lagos, Portimão, Lagoa, and Tavira denominations of origin. As interest grows both locally and abroad, industry leaders say scaling up production will be key to expanding into export markets while maintaining a focus on quality.