Argentina’s wine consumption plunges from 90 liters to 15 per person, shuttering 1,100 vineyards

(SeaPRwire) –   Argentina’s once prosperous wine sector is grappling with its most severe crisis in over 15 years, marked by all-time low domestic consumption, shrinking exports, and poor crop yields.

Despite this grim backdrop, hundreds of wine lovers still came together last week in Mendoza—Argentina’s wine country heartland—to celebrate the annual National Wine Harvest Festival. Festival-goers took in dance shows, listened to live music, and cast votes for the new Vendimia festival queen.

The festival marked its 90th anniversary even as Argentina’s per capita domestic wine consumption fell to a historic low of 15.7 liters (4.1 gallons) in 2025, per the National Institute of Viticulture (INV). For context, in 1970, Argentines drank up to 90 liters (24 gallons) per person each year.

Additionally, 1,100 vineyards have closed nationwide, and 3,276 hectares (8,095 acres) of grape-growing land have disappeared.

Fabián Ruggieri, head of the Argentine Wine Corp trade association, links the decline mostly to a “steep drop in purchasing power” starting in 2023. He noted this trend hits middle- and low-income consumers hardest—those who used to drink wine daily.

For Federico Gambetta, director of Altos Las Hormigas—a mid-sized winery in Mendoza—the crisis is worsened by changing consumer habits.

“People don’t drink wine in large quantities anymore,” Gambetta stated, adding that consumers now look for “coherence” and a meaningful reason behind their buys.

Older generations preferred high-alcohol, full-bodied wines, but younger consumers value traits like “approachability, freshness, and lightness”—characteristics common in white wines and rosés.

One of Gambetta’s red wines—Malbec Los Amantes 2022—was recently named 41st on the list of the world’s 100 best wines. Still, he points out that his winery started adjusting its wines in 2010—once known for a traditional, heavy style—to attract a new generation of consumers wanting lighter options.

“Everything has changed,” Gambetta said. “If you aren’t adaptable, you’re doomed.”

The U.S. is seeing a similar shift as the older, wine-centric population ages and younger adults don’t take their place. A Silicon Valley Bank report found millennial and Gen Z drinkers spread out across more beverage categories and drink less overall—especially those under 29.

The global market provides little help. As the world’s 11th biggest wine exporter, Argentina’s exports dropped to 193 million liters (51 million gallons) in 2025—a 6.8% year-over-year decrease and the lowest volume since 2004, per INV.

Ruggieri says exports are hindered by funding problems, high logistics costs, and a lack of competitiveness due to foreign tariffs. While neighboring wine rival Chile has free trade deals with over 60 economies—often accessing markets like China with near-zero tariffs—Argentina faces 10% to 20% tariffs in most markets.

Local producers such as Gabriel Dvoskin—owner of the 10-hectare Canopus winery, which makes around 50,000 bottles annually—also battle inflation.

Dvoskin, who exports to 15 countries (with the U.S. as his top market), admits that Argentina’s high production costs and out-of-control inflation put his wines at a disadvantage versus global competitors.

“Our inflation makes us somewhat pricey,” Dvoskin said. “My French counterpart has much lower costs for dry inputs—bottles, corks, and so on—than I do.”

For Gambetta, the current crisis underscores a critical industry lesson: product quality can’t be compromised.

“Right now, everything is extremely fragile, and one misstep can put you out of business,” Gambetta said.