2026-03-26
Wine consumption in Argentina has dropped to its lowest level in history, falling below the symbolic threshold of 16 liters per person per year. According to data from the National Institute of Viticulture (INV), Argentines consumed an average of 15.77 liters per capita in 2025. This figure marks a significant decline for a country that has long been recognized as one of the world’s leading wine producers.
The decline is not new, but the pace has accelerated. In 2005, annual per capita wine consumption in Argentina was 29.2 liters. By 2025, that number had been cut almost in half. The most pronounced drop occurred over the last decade: between 2015 and 2025, total domestic wine consumption fell from 10 million hectoliters to about 7.2 million, a contraction of 28%. This trend is affecting both small producers in traditional wine regions and large export-oriented wineries.
Several factors are driving this decline. Experts point to the growing popularity of craft and industrial beers, even though those categories are also facing challenges. Non-alcoholic beverages have gained ground, especially among younger consumers who are moving away from traditional table wine culture. Inflation has eroded real purchasing power, making wine less accessible for many families. The economic adjustment policies implemented since late 2023 have further reduced spending on food and beverages across all sectors.
Historically, the domestic market has been the backbone of Argentina’s wine industry. Now it represents its main vulnerability. In 2025, total domestic sales dropped by 2.7% compared to the previous year. Only varietal wines showed growth, rising by 3.4% to reach 234.7 million liters, or 31.5% of the total market. Other segments, led by non-varietal wines that make up most of the volume sold, saw declines exceeding 5% in some cases.
Early data from 2026 suggest a slight stabilization: January sales increased by 0.6% compared to January 2025. However, analysts caution that this uptick comes after a period of steep decline and may reflect a correction from a very low base rather than a true recovery in demand.
Exports have not compensated for weak domestic sales. In 2025, Argentina exported just 1.93 million hectoliters of wine—the lowest volume since 2004—representing a year-on-year drop of 6.8%. Export revenues fell by 7.2% to $661 million, the lowest dollar value since 2009. Bulk wine exports were hit hardest, down by 13.6%, as competition intensified from Chile, Spain and Italy in key international markets.
In response to these challenges, the industry is focusing on three main strategies: premium positioning, enotourism and market diversification. Malbec remains Argentina’s flagship grape variety and accounts for nearly a quarter (23.9%) of all exports. Enotourism is also expanding; Mendoza now boasts around 250 wineries open to visitors—the largest network in Latin America—which helps stimulate local economies through tourism spending.
Efforts to diversify export markets are underway as well. The “The Wine for Now” campaign led by Wines of Argentina aims to strengthen the country’s presence in premium segments in Sweden, Switzerland, Norway, Ireland and Brazil.
Despite its resilience through past currency crises, recessions and even pandemics, Argentina’s wine sector now faces one of its most serious structural challenges in decades: declining domestic consumption combined with falling exports and an expected grape harvest in 2026 that INV estimates will be down by another 9% compared to last year.
Industry leaders acknowledge that producing quality wine is no longer enough; they must also persuade both Argentines and international consumers to choose Argentine wine again if they hope to reverse this downward trend.
Founded in 2007, Vinetur® is a registered trademark of VGSC S.L. with a long history in the wine industry.
VGSC, S.L. with VAT number B70255591 is a spanish company legally registered in the Commercial Register of the city of Santiago de Compostela, with registration number: Bulletin 181, Reference 356049 in Volume 13, Page 107, Section 6, Sheet 45028, Entry 2.
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