For Immediate Release: 2 March 2020
Premiumisation trend takes hold in Portugal as regular wine consumers embrace higher prices and become move involved in the category, according to the latest Wine Intelligence report
The latest Wine Intelligence Portugal Wine Landscapes 2020 report shows that Portuguese who drink wine at least once per month are embracing the higher price points of still wine while becoming more connected to the wine category.
According to the report, average spend per bottle across many off-trade occasions has significantly increased since 2017, particularly ‘with an informal meal at home’ and ‘with a more formal dinner party at home’. Price is also being used as the most important driver of choice, suggesting Portuguese consumers are confident that the cost of the product on the shelf is a good reflection of the quality insight the bottle.
This willingness to spend more correlates in a significant growth in interest in the category. The tracking data is showing a growth in those agreeing with the statement ‘I enjoy trying new and different styles of wine on a regular basis’, one of Wine Intelligence’s tracking measures of involvement. Similarly, the proportion of Portuguese regular wine drinkers with low involvement has significantly decreased since 2018.
The increasing curiosity is reaffirmed by trade experts, who link it to the rise of consumer-focused promotional initiatives by brand owners, such as tasting, wine festivals and winery-owned restaurants and wine shops. Another factor driving higher prices may be the growth of tourism – 12.8 million visitors were recorded in 2018, a national record, with wine tourism one of the main beneficiaries.
As with other markets, the rise in involvement and spend has been accompanied by a drop in consumption frequency. This decrease in frequency by Portuguese consumers is expected to be counteracted by the growth in tourism and our analysis suggests net volumes will remain stable for the next 2-3 years.
Commenting on the report, Wine Intelligence Portugal Country Manager Luis Osorio said: “The data paints an encouraging picture for Portugal’s wine industry, though producers need to be mindful of the change in consumer behaviour towards a more occasional and thoughtful relationship with wine.”
For more details, please read more abut the report here.
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