Brazil, an opportunity for the Catalan wine sector

From October 5 to 7, Sao Paulo (Brazil) will become the meeting point for wine in Latin America with the organization of the ProWine International Fair. With more than 4,000 professional visitors and 350 exhibitors from around the world, it will bring together importers, distributors, sommeliers and traders, interested in doing business, acquiring knowledge and building relationships with the region's leading wine and spirits producers.

After last year's cancellation, Prodeca will be there for the first time welcoming Catalan companies under the brand "Catalunya, where wine is culture". Before closing registrations and to publicize the Brazilian market and the business opportunities that participation in the fair entails, last April 13 the director of ProWine Sao Paulo, Rico Azeredo, accompanied by other local experts in the wine sector, offered an online informative meeting with the most relevant data of the Brazilian market and information on the wine export process in Brazil. Retrieve this seminar, open to Catalan wine and cavas companies:

In 2020, more than 1,550M liters of wine and sparkling wines were consumed in Latin America. In this context, Brazil is the second country in the region, after Argentina, with 17% of the total consumed with a significant weight in terms of the international product: Brazil consumes more than 50% of the wine imported by Latin America. 

According to Brazilian customs data, wine sales from third countries in Brazil reached 152M liters. Despite being one of the countries most affected by the coronavirus pandemic, which led to significant trade restrictions, lBrazil's wine imports soared 26% in volume and 50% in value in 2020. For the second consecutive year and after the slight drop in 2018, Brazil imported more wine, with an average price of up to €2.22 per liter, the highest to date.

A growing market for wine imports

In fact, according to the same data, the Brazilian market has gone from 30M liters imported in 2000 to 152M liters last year. In these 20 years, imports have increased at an annual rate of 8.5% in volume and 15% in value, going from €20M imported in 2000 to €330M in 2020. 

Currently, packaged still wines monopolize Brazilian imports with more than 95% of the total (146M liters). Sparkling wines, the second type of imported wine, have lost share compared to the previous year, decreasing by 18% in volume and 11% in value, reaching 5M liters imported. On a third level, wine in bag-in-box format grew by 31.7% and 60% in value, but with insignificant absolute figures (1.32M liters imported). 

With 48% of the market, and benefiting from its geographical proximity, Chile dominates the Brazilian market. Argentina and Portugal complete the podium, both exceeding 23M liters exported. Italy loses share as the fourth exporter compared to 2019 and France and Spain share the 5th and 6th place: while Spain is the 5th supplier in terms of volume, France occupies this position in terms of value. 

Catalan wine exports to Brazil in figures

Brazil was the 16th destination market for Catalan wines, which exported a value of €5.45M, 1.06% of the total exported worldwide in 2020. Compared to last year, Catalan wines increased their exports by 11% in value and 23% in volume. This increase has been mainly due to the increase in exports of sparkling wines, which account for 60% of the Catalan wine market in Brazil, both in volume and value.  

Domestic consumption will grow soon

The Brazilian consumer is characterized by being more open to new things compared to other markets in Latin America. according to Exam Brazil, the country's reference economic magazine, 70% of Brazilians are willing to try new varietals, from different countries and producers. A much higher predisposition than that of American, Chinese and English consumers (51%, 47% and 43% respectively).

84% of wine consumption falls on red wines, 15% on white wines and 1% on rosé wine. Looking ahead to the next four years, wine consumption in Brazil is expected to grow at a high rate of more than 9% per year in volume and 17% in value. This implies a growth in imports.

They stand out consumers over 35 years old, drivers of wine consumption. In 2020 among the total population we find that 59% are regular consumers.