The latest edition of Argentina Wine Landscapes 2021, our first update on the market since 2017, shows that Covid has taken a toll on the wine sector, but there is growing opportunity for the off-trade, ecommerce and wider sector innovation
Globally, we are observing key patterns in consumer behaviour that have come about due to imposed lockdowns and restricted freedoms. In times of crisis, humans tend to value small rewards or little luxuries to keep up with difficult daily life, such as the one the pandemic has brought upon us. Increased at-home consumption, fall in the on-trade, accelerated innovation and a small revolution in the online channels in terms of sales and communication are some of the pandemic effects we have highlighted in this report and aim to start tracking.
All of these factors can be seen at work in the wine market in Argentina. The country went through one of the longest lockdowns in the world in 2020 and, at the time of this report publication, Argentineans are facing a new wave of increasing Covid-19 cases. While the future remains uncertain – between increasing cases and the hopes of a fast vaccination roll out – our latest research on the market finds that there is much to be positive about.
This year’s research highlights three key findings about Argentina which suggests a period of positive change in the market:
- There is a proportion of Argentinian consumers with higher purchasing power that stayed in Argentina this year instead of travelling abroad in Europe and America. These un-spent travel budgets seemed to have been partially spent on better quality wines drunk at home – will that have a long-lasting effect on the relationships they have with brands?
- Times of crisis are also periods of innovation. The pandemic brought innovation in styles, branding, packaging and so on in the wine industry. According to feedback from the trade, consumers are now looking beyond Malbec, for instance – what were the success case studies in 2020 and what can one learn from them?
- The online channel brought a huge opportunity for wine producers and brand owners to start dealing directly with the consumer, both for sales and marketing. This is particularly relevant for the smaller producers, which play a particularly important role in the Argentinian market. These smaller producers can now get to consumers much easier – how will this affect the distribution structure of the market in the future?