Brazil: the middle class wakes up to wine

Despite the world financial crisis, Brazil has a growing economy and will gradually take up an important position in the world wine scene.

A survey by the IWSR (International Wine and Spirit Record) shows that Brazil has become the second wine consumer in Latin America in terms of volume, just behind Argentina. Brazilians consumed 326 million litres of wine in 2006.

For 2011, the survey forecasts consumption of around 369 millions litres, an increase of 13% compared with 2006.

And, although these figures remain much less than those of the leading countries, such as France and Italy, Brazil offers fine growth perspectives for the coming years, thanks to three key trends.

 The biggest wine consumers (the middle and upper classes) are drinking more and more every year.

A survey by the IBRAVIN Wine Institute at the beginning of 2008 shows that consumption per inhabitant remains low, at around 2 litres.

But this figure rises to 5.2 litres among the 48% of the population of regular wine drinkers. It could even reach 9 litres by 2030.

This would take Brazil to the threshold of the Top 5 of the world’s biggest wine consumers.

 The growing Brazilian economy encourages the emergence of new wine consumers.

In spite of the crisis, Brazilian GDP will remain positive, with relatively low unemployment. This favours the development of a middle class, which is now in the majority (52% of the population).

And this is the class that spends most on wine purchases. IBRAVIN forecasts that the middle class will spend 39% more on wine purchases in 2011 than in 2006. This will inevitably increase total wine consumption in the country in the coming years.

 Brazilians are seeking better quality wines. This trend is explained by a better wine “education” and by wine events and fairs.

Until recently, two thirds of the wines consumed were table wines. Now, the fine wine segment is booming because of imports (these account for 80% of the fine wine category).

According to UVIBRA (the Brazilian vitiviniculture union), over the period 2002-2008, imported wines increased by 220% in volume and 300% in value. This clearly shows the growing demand for quality wines.

Growing imports have also encouraged Brazilian producers to improve the quality of their production and marketing. Brazilian consumers now have a growing choice of quality wines.

Source : www.wine-business-international.com - March 26, 2009

Brazil produces around 8.21 million bottles of sparkling wines (read our country fact-file).