Argentina’s Wine Industry Faces Worst Crisis in Over 15 Years

Argentina's wine sector is experiencing its most severe downturn in more than a decade and a half, with domestic consumption dropping to historic lows and exports declining sharply. The crisis has forced over 1,100 vineyards to close nationwide while changing consumer preferences and economic pressures continue to challenge producers.

BUENOS AIRES, Argentina — The wine industry in Argentina is experiencing its most severe downturn in over 15 years, marked by historically low domestic consumption, declining export numbers, and poor crop yields.

Despite these challenging circumstances, wine lovers gathered in Mendoza last week for the 90th annual National Wine Harvest Festival, celebrating with traditional dance performances, live entertainment, and the crowning of a new festival queen in the country’s premier wine-producing region.

Data from the National Institute of Viticulture reveals that Argentines consumed just 15.7 liters (4.1 gallons) of wine per person in 2025 — the lowest figure on record. This represents a dramatic decline from 1970, when annual per-capita consumption reached 90 liters (24 gallons).

The industry has also seen 1,100 vineyards cease operations nationwide, with grape-growing areas shrinking by 3,276 hectares (8,095 acres).

Fabián Ruggieri, who leads the Argentine Wine Corp trade organization, points to economic hardship as a primary factor. He cites a “sharp decline in purchasing power” beginning in 2023, particularly affecting middle- and lower-income households that historically enjoyed wine as part of their daily routine.

Federico Gambetta, who oversees operations at the mid-sized Altos Las Hormigas winery in Mendoza, believes changing consumer habits have worsened the situation.

“People no longer consume wine en masse,” Gambetta explained, emphasizing that today’s buyers want “coherence” and meaningful purpose behind their purchases.

Generational preferences have also shifted significantly. While previous generations preferred high-alcohol, robust wines, younger drinkers now value “approachability, freshness and lightness” — characteristics more commonly found in white wines and rosés.

Despite recognition for his Malbec Los Amantes 2022, which earned 41st place among the world’s top 100 wines, Gambetta has adapted his production methods since 2010, moving away from traditional heavy styles to accommodate evolving tastes.

“Everything has mutated,” Gambetta observed. “If you’re not dynamic, you’re lost.”

Similar trends are emerging in the United States, where older wine enthusiasts are aging out of the market while younger consumers fail to replace them. Research from Silicon Valley Bank shows that millennial and Generation Z drinkers diversify across multiple beverage categories while consuming less alcohol overall, especially those under 29.

International sales provide little consolation for Argentine producers. As the world’s 11th-largest wine exporter, Argentina recorded export volumes of 193 million liters (51 million gallons) in 2025 — representing a 6.8% annual decrease and the smallest volume since 2004, according to institute data.

Ruggieri identifies several obstacles hindering export growth, including financing challenges, expensive logistics, and competitive disadvantages from foreign tariffs. While neighboring Chile benefits from free trade agreements with more than 60 countries — often accessing markets like China with minimal tariffs — Argentine wines face tariff rates between 10% and 20% in most international markets.

Small-scale producers like Gabriel Dvoskin, whose 10-hectare Canopus winery produces roughly 50,000 bottles annually, also contend with inflation pressures.

Dvoskin, who ships to 15 countries with the United States as his primary market, recognizes that Argentina’s elevated production costs and persistent inflation put his wines at a competitive disadvantage.

“Our inflation makes us a bit expensive,” Dvoskin noted. “My equivalent in France has a much lower cost for dry inputs — bottles, corks, etc. — than I do.”

For Gambetta, the ongoing crisis underscores an essential industry principle: maintaining product excellence remains crucial.

“Right now, everything is very delicate, and one wrong step can bankrupt you,” Gambetta warned.