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Export Opportunities for US Wines in Brazil

Brazil reached robust sales growth figures for wines in 2020, reaching 380 million liters or 15 percent higher compared to 2019. There is market potential for U.S. wines as Brazilian consumers become more interested in wines. The imports of fine wine continue to grow and the beverage is becoming more popular in the market. The U.S. Department of Agriculture and the Ministry of Agriculture, Livestock, and Food Supply (MAPA) are engaging in technical discussions to address testing requirements. MAPA also released a public consultation on July 9, 2021, to propose changes to its regulation (Normativa 14), covering the wine sector quality standards. The consultation will close 75 days after its initial announcement.

Overview of the wine market in Brazil

Brazil is the third-largest producer of wine in Latin America. According to the Brazilian Institute of Geography and Statistics (IBGE), Brazil has 74,826 hectares of grape cultivation. The main species grown are Vitis labrusca, Vitis bourquina, and hybrids, representing 85% of all cultivated areas. The Brazilian legislation allows wine production from those types of grapes, known locally as table wines. Brazil also produces Vitis vinifera, the species intended for making high-quality wine or fine wine, as they are known in the local market.

The wine supply chain in Brazil is very fragmented and led by domestic producers. However, most of this volume is table wine and the consumption of this type of wine is significant due to cultural tradition. There is a potential to increase the consumption of fine wine as Brazilians are more interested in wines, the imports of fine wine continue to grow, and the beverage is becoming more popular. Imported wine has become an important segment in the market and represents dominance when talking about high- quality wine.

Historically, Brazil has a low consumption per capita of wine, around 2.6 liters, varying according to different metrics. Although this consumption can be considered low compared to other Mercosul countries and Europe, according to local analysts, there is a tendency to increase consumption for the coming years. Read the full report from the USDA Foreign Ag Service HERE.

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