The red wine market - Portugal

1.1 Definition and scope of the study

Wine is an alcoholic beverage obtained after the fermentation of the grape: the best known and most consumed types of wine in Portugal are red wine, white wine, rosé and Porto. Another segmentation of wine can be made according to its origin, its denomination, but also according to its grape variety.

This study focuses in particular on red wine. Red wine is obtained as a result of the maceration process, which is an alcoholic fermentation that takes place in the presence of the fruit rind, so that the must can absorb the aromatic compounds, colouring elements and tannins. In this way, the red wine develops a better structure, a greater intensity of colour, which increases the polyphenol index (antioxidant substance responsible for many of its benefits).

The world consumption of wine reaches 32 billion bottles per year, dominated by the consumption of the United States with 4.7 billion bottles per year and that of France with 3.7 billion bottles per year. World wine consumption has increased in recent years to reach nearly 300 million hectolitres in 2019. For the wine giants, the challenge remains to establish themselves in emerging markets. China, for example, is expected to account for more than two-thirds of global growth in this market by 2020.

The global market continues to be dominated by multinationals. Recently, however, thousands of independent wineries have managed to establish themselves in niche markets and are often very prestigious. In the meantime, the wine sector has been facing a strong concentration in recent years with the completion of numerous mergers and acquisitions.

The Portuguese market is expected to reach a CAGR of 2% and to reach a volume of 538 million litres in 2023. New domestic producers are emerging every year, contributing to the high fragmentation of sales and increasing pressure on prices in the country. According to the International Organisation of Vine and Wine, the country was the absolute leader in per capita consumption, with a volume of 62.1 litres per person per year. A study by the consultancy firm Levelsource revealed that red wine is the most consumed among the Portuguese (48%). Out of a range of more than 250 grapes of Portuguese origin, some of them obviously stand out for their exceptional quality. As far as red wine varieties are concerned, Castelão, Baga, Trincadeira and Touriga Franca are the most renowned.