Argentina’s Wine Market Faces Decline Amid Deregulation Efforts

Sales of Argentine wine, both domestically and internationally, are experiencing a decline, reflecting a broader global trend and coinciding with the overall decrease in consumption within the country. The national government has removed nearly 1,000 regulations and norms for the winemaking and grape farming sector, a decision intended to enhance sales. This initiative has elicited mixed reactions from key stakeholders within the industry. Reports says that from January to September 2025, wine sales in Argentina experienced a decline of 2.5% relative to the corresponding period in the prior year. From January to October 2025, wine exports experienced a decline of 6.8%. The decline in wine consumption has intensified, yet this trend is not unprecedented — in 2021, Argentines consumed 8.3 million hectoliters, whereas in 2024, their purchases fell to 7.6 million hectoliters. Sven Piederiet, Argentina’s primary wine-producing province, noted a global decline in alcohol consumption, with sales volumes of beer, spirits, and wine decreasing, particularly in Europe and the USA. Argentina, he noted, experienced a significant downturn in mass consumption in 2024.

Salentein has performed admirably over the past decade, distinguishing itself as one of the few Argentine wineries to achieve growth in both volume and turnover. However, it has not been immune to the market downturn experienced in the last two years. “It’s really a new panorama for us,” he added, emphasizing the competitive dynamics of the wine market. “Argentina is not particularly competitive due to its appreciated currency, tax burden, high transportation costs, and the absence of free trade agreements in comparison to other nations like Chile and Australia,” he added. Two weeks ago, Deregulation Minister Federico Sturzenegger announced the repeal of 973 norms pertaining to the wine industry. The INV will now focus exclusively on monitoring bottled wine, rather than overseeing the entire process. “We are departing from the regime where the state aimed to regulate every aspect of the production process and transitioning to a model that prioritizes the suitability of wine for consumption,” the minister stated in a post, further expressing his intention to provide the industry with “flexibility and freedom.” Perspectives within the industry vary significantly.

Juan Barbier stated that the deregulation will enhance the industry by alleviating administrative burdens and possibly decreasing costs. “I have friends at other wineries who inform me, ‘I’ve had the INV here from 8 in the morning until 6 in the evening,” he stated. In a similar vein, Piederiet of Salentein remarked that the measures lead to a reduction in “costs and bureaucracy. The INV will cease to verify the authenticity of the grapes’ origin from Agrelo when the label indicates ‘Agrelo origin.’ Now the producer, the winemaker, or an organization could verify and guarantee the origin on their own,” he added. In light of the repeal of several regulations, Piederiet asserts that a thorough evaluation of their implementation will now be necessary. “It is likely that they committed certain errors, which would subsequently necessitate rectification,” he stated. There exists a segment of the population that does not share enthusiasm regarding the recent deregulations. The Winegrowers Association of Mendoza, representing grape farmers, expressed in a communiqué that it received the news with “deep concern and unease,” noting that the decree “could directly affect the minimum legal security that producers have to protect the real value of their product.”

The association asserted that restricting controls solely to the final product will undermine the oversight of the process beginning with the grape harvest, thereby hindering the collection of essential data required for formulating wine policies. The removal of the grape receipt, they noted, effectively eliminates the “only official proof” that farmers have transferred grapes to winemakers. Their assertion is that the choice to render certifications of origin, vintage, and varietal optional “weakens” the identity and value of their wines. This, they assert, may impede “the recognition of the producer’s work and the price of the grapes,” alongside consumer confidence in the authenticity of the product they are acquiring. “It has taken a lot for the quality of Argentine wine to be acknowledged abroad,” stated Rubén Flades in an interview. “Today, wine is not an imported product because it is less expensive domestically than overseas.” “People buy wine in Argentina because they know there is complete control over production and processing,” Flades stated. “The state is withdrawing, and this development is likely to exacerbate the overall situation, rather than improve it.”