In Chile, in the last 10 years, the per capita consumption of wine has registered a stagnation, in contrast to categories such as beer, which have shot up to the eaves of a young audience that looks for other products. Given this, the wineries have opted to strengthen their liquor distribution business, along with developing brands that aim to captivate the millennial consumer. Learn more about chilean premium wines in www.cortahojas.com
Although, the wine industry has been trying for some time to generate mechanisms to increase per capita consumption, the reality has been adverse to local musts. It is that the new generations – the so-called millennials – prefer other things today.
Here is some information According to the producers of beer 10 years ago the national consumption of wine amounted to 15 liters per person and, last year it reached 13. On the contrary. the beer went from 34 liters per capita to 43 liters in the same period.
According to the information from de Vinos de Chile, there has been a slight increase in the intake of wine from 13.4 to 13.9 liters in the last seven years -from 2010 to 2017-, with a stagnation in the last year, from 14 to 13.9 liters, according to an internal publication of the association.
What happened? The analyst blames the ‘premiumization’ of consumption and the replacement for less economic products would be behind. It is noted that traditional wines have decreased and its replacement is for beers and liquors. In turn, the consumption of high-end (premium) wines and sparkling wines is increasing, but they can not compensate for the drop.
With these data it appears that consumers are drinking less, but of better quality. Then, it is appreciated that there are more massive brands that are suffering, while there are important growths in wine brands of greater value.
And this is revealed by the figures of Vinos de Chile. Between January and May, shipments in value rose 6.8%, while volume fell 1.5%.
In recent years there has been a sophistication, which has affected the frequency of consumption. Today we have a higher average price and this has made part of consumers make habitual more accessible categories, such as beer.
Chile is growing particularly in the segments of fine and super fine wines, because that’s where the industry’s big growth potential is going to be in the future. Consumption is awakening and this is reflected in Chile being the first exporter of bottled wines of the new world and the fourth worldwide.
Beyond the above, in an industry where costs have risen, margins are getting smaller, the vineyards are already developing strategies to make their operations profitable.
At this point it is key how young people are given proposals that are in tune with their lifestyle, with their consumption occasions and with their tastes. The line is drawn and the aim is to reach a national consumption of 18 liters per capita by 2020, with wines and sparkling wines.
However, all agree that the results of the market will improve with premium wines. The development of premium wine consumption should help improve margins in the sector.
Learn more about chilean premium wines in www.cortahojas.com