Argentina's wine industry is experiencing its most severe crisis in over 15 years, with domestic consumption projected to hit an all-time low of 15.7 litres per person in 2025, according to the National Institute of Viticulture (INV). This marks a dramatic decline from 90 litres per person in 1970. The crisis has already led to the closure of 1,100 vineyards, with 3,276 hectares of grape production lost.
The annual National Wine Harvest Festival in Mendoza, celebrating its 90th year, provided a stark contrast to the grim statistics. Fabián Ruggieri, president of the Argentine Wine Corp trade group, attributes the drop in consumption to a “sharp decline in purchasing power” since 2023, particularly affecting middle- and low-income consumers who traditionally drank wine daily.
Federico Gambetta, director of Altos Las Hormigas winery, notes a shift in consumption patterns, with younger consumers seeking “approachability, freshness and lightness” in wines, moving away from the heavy, high-alcohol styles favored by older generations. His winery began modifying its wines in 2010 to appeal to this new demand. “Everything has mutated,” Gambetta said. “If you're not dynamic, you're lost.”
Exports are also struggling. Argentina, the world's 11th largest wine exporter, saw exports fall to 193 million litres in 2025, a 6.8% year-on-year decline and the lowest volume since 2004. Ruggieri cites financing issues, high logistics costs, and tariffs between 10% and 20% in most markets, while competitor Chile benefits from free trade agreements with over 60 economies.
Local producer Gabriel Dvoskin, owner of Canopus winery, struggles with inflation and high production costs. “Our inflation makes us a bit expensive,” Dvoskin said. “My equivalent in France has a much lower cost for dry inputs — bottles, corks, etc. — than I do.” Gambetta emphasizes that product quality is non-negotiable: “Right now, everything is very delicate, and one wrong step can bankrupt you.”
