Chile's wine sector adapts to falling demand, low-alcohol trend
· UPISANTIAGO, Chile, May 6 (UPI) -- Chile's wine industry is facing mounting challenges as global consumption declines and consumers increasingly favor lower-alcohol beverages.
Worldwide wine consumption has steadily decreased in recent years. The International Organization of Vine and Wine reported that global consumption fell from 229 million hectoliters in 2020 to 214 million hectoliters in 2024. Preliminary indications for 2025 suggest the downward trend continued.
Chile is the world's fourth-largest wine exporter, and these exports also have weakened. According to industry association Wine of Chile, the country exported 46.7 million cases of bottled wine in 2024, valued at $1.299 billion. In 2025, shipments fell 2.9% to 46.1 million cases, worth $1.262 billion.
"Many thought 2025 would bring relief. It did not. The crisis worsened, and proof of that is that several companies recorded declining sales," Eduardo Guilisasti, chief executive officer of Viña Concha y Toro, Latin America's largest wine producer and exporter and one of the world's 10 largest wine companies.
"Compared with 2024, 2025 was much worse," Guilisasti added during the company's shareholders meeting.
Industry analysts say the downturn reflects not only weaker demand, but also stronger competition and changing consumption habits, with consumers increasingly choosing higher-quality products despite higher prices.
"Younger generations, millennials and Gen Z have different alcohol consumption habits than their parents," wine industry analyst Nicolás Román, an academic at the University of the Andes' Faculty of Economic Sciences, told UPI.
"They are more focused on sports and spend more on leisure and entertainment. They consume less alcohol, are willing to pay more per glass and prioritize physical well-being after drinking," he said.
Wine specialist Ana María Barahona, editorial director of La CAV magazine and president of the wine quality panel Mesa de Cata, said the trend extends beyond Chile.
"There is growing discussion about declining alcohol consumption among young people, but also a broader anti-alcohol view that links alcohol to diseases such as cancer," Barahona told UPI.
She added that spirits producers have invested heavily in attracting younger consumers, while the wine industry failed to do so.
"There is talk of a communication problem, but beyond that, there are sociocultural factors that have made many people feel wine is no longer an important part of their diet and far removed from their daily tables," she said.
In response, wineries have expanded their portfolios to include lighter wines with lower alcohol content, while introducing a broader variety of flavors and aromatic profiles.
The strategy aims to attract new consumers seeking fresher and easier-to-drink products while also retaining existing customers as preferences evolve.
Viña Concha y Toro launched two new products in 2025: Casillero del Diablo Zero, a nonalcoholic sparkling wine, and BeLight, a wine line with 8.5% alcohol content. Within months, the products accounted for nearly 6% of the company's total sales volume in the United States.
Miguel Torres Chile developed Serena, the country's first dealcoholized wine made entirely from Sauvignon Blanc grapes. Meanwhile, Santa Rita introduced the alcohol-free 120 Zero line and 120 Delight, a low-alcohol wine range that has grown 68% since launching in 2025.
Gonzalo de Tezanos Pinto, brand owner at Santa Rita, told Chilean news outlet Emol that the winery has worked in the category since 2021 in anticipation of deeper changes in how consumers relate to wine.
Román said Chilean wineries are evolving from traditional reserve wines toward more premium products.
"In the future, wineries will likely offer more sophisticated wines, including nonalcoholic cocktails," he said.
He added that modern technology now allows wineries to reduce alcohol content without sacrificing the aromas and flavors younger consumers expect.
Barahona said wineries are also promoting new white grape varieties to attract potential customers.
"Low-alcohol wines are slowly gaining space, but wine clubs, specialty stores, restaurants and wineries themselves still have enthusiastic consumers looking for premium and boutique wines," she said.