The Argentinean Wine Industry

The Argentinean viticulture sector has undergone striking transformations in the last quarter of the century, from the process of uprooting low-quality grapevines covering 72,000 ha (178,000 acres) to the plantation of highly demanded grapevines extending over 77,000 ha (185,000 acres), 30,000 ha (74,000 acres) of which correspond to Malbec. Additionally, production capacity has increased, combined with the arrival of national and international investments in the sector. Finally, two commercial developments are worth mentioning: wine premiumization in the domestic market and their export to the main international markets. The last five years have witnessed an adverse economic context in Argentina, which has slowed down the momentum for many wineries. In the next years, lower inflation rates and a policy for remaining open to the world will allow the Argentinean wine industry to expand and evolve into an increasingly professional industry with an even sharper strategic focus, even, perhaps, with fewer companies operating. The recent years have been very difficult for the Argentinean economy, and many wineries have had to adapt the business to new conditions, especially in the domestic market. Nowadays the Argentinean wine sector structure is very different, and the wineries and producers have the challenge to grow in a very competitive market with opportunities and very strong threats.