The white wine market - Portugal

1.1 Definition and scope of the study

Wine is an alcoholic beverage obtained after the fermentation of the grape: the best known and most consumed types of wine in Portugal are red wine, white wine, rosé and Porto. Another segmentation of wine can be made according to its origin, its denomination, but also according to its grape variety. This study will focus more specifically on white wine. The process of making white wine is contrary to that of red wines: in fact, the separation of the solid parts of the must takes place at the very beginning, then the must undergoes a decantation process in which the heavier solid substances settle.

The world consumption of wine reaches 32 billion bottles per year, dominated by the consumption of the United States with 4.7 billion bottles per year and that of France with 3.7 billion bottles per year. World wine consumption has increased in recent years to reach nearly 300 million hectolitres in 2019. For the wine giants, the challenge remains to establish themselves in emerging markets. China, for example, is expected to account for more than two-thirds of global growth in this market by 2020.

The global market continues to be dominated by multinationals. Recently, however, thousands of independent wineries have managed to establish themselves in niche markets and are often very prestigious. In the meantime, the wine sector has been facing a strong concentration in recent years with the completion of numerous mergers and acquisitions.

The Portuguese market is expected to reach a CAGR of 2% and to reach a volume of 538 million litres in 2023. New domestic producers are emerging every year, contributing to the high fragmentation of sales and increasing pressure on prices in the country. According to the International Organisation of Vine and Wine, the country was the absolute leader in per capita consumption, with a volume of 62.1 litres per person per year. Out of a range of more than 250 grapes of Portuguese origin, some of them obviously stand out for their exceptional quality. Among the white wine varieties, Fernão Pires, Alvarinho, Encruzado and Arinto stand out, producing light wines with good acidity, slightly sparkling and with the rich floral aromas characteristic of soft drinks.

There is a recurrent confusion between Portuguese white wine and Vinho verde (green wine), since both refer to a bright, crystalline drink. However, in reality, the two types of wine are different, as the name Vinho verde refers to the place of origin of the drink, not its colour. As it is a Denomination of Controlled Origin, Vinho verde is linked to a specific region and its typical production rules. There are an infinite number of "Vinho Verde" wines, which can be white or red, rosé or even sparkling.