2026-08-31
Chile is moving to create a separate legal category for low-alcohol wine, a change that would allow wineries to sell products starting at 8.5% alcohol without altering the country’s long-standing definition of traditional wine.
The proposed change is contained in a decree that is still under review by Chile’s Comptroller General’s Office, a required step before it can take effect. Until that review is completed and the measure is published, the current rule remains in force. Under existing Chilean law, bottled wine sold for direct consumption must have a minimum alcohol content of 11.5%.
The proposal would not lower that 11.5% floor for standard Chilean wine. Instead, it would add a new category for special wines made exclusively from fermented grape must and produced with authorized winemaking practices. In practical terms, the measure would open a regulated path for wines in the 8.5% to 11.4% range, a segment that Chilean producers have not been able to serve under the traditional wine definition.
That gap of three percentage points is the core of the proposal. Chilean producers would still have to meet the existing legal requirements if they want to market a product as conventional wine for direct consumption. The new rule is meant to work alongside the current framework, not replace it.
The legal background is clear in the country’s alcohol law. Article 16 states that wine may only be obtained from the alcoholic fermentation of fresh or sun-dried grape must from the Vitis vinifera species. Article 36 then sets the minimum alcohol content for bottled wine sold for direct consumption at 11.5%, while establishing higher minimums for fortified and liqueur wines. That rule remains the binding standard unless the new decree completes the review process and enters into force.
The government’s move comes as Chile’s wine sector tries to respond to weaker consumption and changing habits among younger drinkers in domestic and foreign markets. Chile is the world’s fourth-largest wine exporter, and it shipped 188 million gallons in 2025 to more than 140 countries, according to figures cited by UPI. Its main destinations included the United States, Brazil, China, Britain and Canada.
Supporters of the new category say the issue is not only regulatory but commercial. Chilean wineries have argued for years that they need a specific legal framework for lower-alcohol products in order to compete in one of the few parts of the drinks market that is still expanding. Without that framework, producers can make lighter styles, but they face restrictions in how they can classify and sell them under Chilean law.
Agriculture Minister Jaime Campos said the proposed threshold matches the 8.5% standard used by the International Organization of Vine and Wine, known as the OIV. That alignment matters for exporters because Chile’s wine industry depends heavily on international markets and commonly looks to global standards when adjusting product rules.
Industry and academic voices say the push is also tied to broader social changes. Pablo Cañón, an assistant professor of viticulture and enology at Universidad Mayor’s School of Agronomy, told UPI that younger consumers are more focused on moderation, physical and mental well-being, and lower-calorie options. He said that has weakened wine’s former role as an everyday drink in many traditional markets.
Cañón cited OIV data showing global wine consumption fell to about 5.5 billion gallons in 2025, down 14% from 2018. He said that decline has been especially visible among younger consumers, including in the United States, which remains the wine industry’s leading international market.
Nicolás Román, a professor at the University of the Andes’ School of Economics and Business, said the proposal is also aimed at helping wine compete for younger adult consumers who are more selective about alcohol intake and fitness. Wines of Chile, the country’s industry association, has publicly said producers were under pressure to develop lower-alcohol offerings but lacked the legal space to compete in that segment.
The proposed category should not be confused with fully dealcoholized wine. The government measure, as described in current coverage of the decree, is designed for wines that still contain alcohol and are made from fermented grape must under authorized enological methods. It does not create a zero-alcohol product category, and it does not rewrite the statutory definition of traditional wine.
That distinction could become important for labeling and enforcement. Chilean law already requires alcoholic beverages to identify their denomination, alcohol content, volume, and bottler information on labels. It also bars statements that could mislead consumers about a product’s origin, composition, nature, or other characteristics. If the decree takes effect, producers would need to market low-alcohol wines under the new category rather than present them as standard bottled wine covered by the 11.5% minimum.
The current law also gives the Agricultural and Livestock Service, known as SAG, broad inspection and enforcement powers. The agency oversees compliance with production, labeling, commercialization, import and export rules, and the law establishes sanctions for products sold with alcohol levels below or above those authorized by law or regulation. That is one reason the industry has sought a clear legal category rather than relying on informal market practice.
Beyond sales strategy, the change could also influence production choices. Cañón said lower-alcohol wine may be easier to develop in Chile’s coastal and southern growing areas, where earlier harvests and grape varieties that naturally retain acidity can support lighter styles. He said those zones may allow producers to make lower-alcohol wines with less technological adjustment, which can help preserve varietal and regional identity.
For now, the proposal remains pending. No official forecasts have been published on how much low-alcohol wine Chilean wineries might produce, how the category could affect exports, or whether prices would differ from traditional wines. What is in place today is still the existing legal minimum of 11.5% for bottled wine intended for direct consumption, while the industry waits to see whether the new 8.5% category clears review and becomes law.