Wine in the Portuguese market was a success story pre-pandemic, but has suffered from closure of the on-trade and lack of tourism during Covid. Wine is expected to recover strongly over the next five years. In the post-Covid world, the challenge for brand owners in wine will be retaining relevance and value.
Portugal’s wine drinkers are getting older, as the shutdown of the on-trade during Covid hurt recruitment of younger LDA drinkers to wine.
Older drinkers, such as Bargain Hunters, make up the majority of Portugal’s regular wine drinking population. However, it’s the younger LDA drinkers, such as those who identify as Generation Treaters and Engaged Explorers, that drive the largest share of spend in the on- and off-trade. They are also more likely to value wine as a lifestyle enhancer.
Bargain Hunters are the largest group within Portugal’s regular wine drinking population. They are frequent wine drinkers but don’t spend very much on their wine purchases, being highly promotion driven. They are relatively involved with the category, and have high confidence in their average wine knowledge. They are the average Portuguese wine consumers, typically 55+ Boomers with low-to-medium incomes.
Generation Treaters, on the other hand, have above-average disposable incomes. This is the segment with the highest population of young LDA people. They also hold the largest share of value in the Portuguese market even though they comprise the smallest proportion of the total wine-drinking population. They buy from a broad repertoire of alcoholic beverages, wine styles, and origins. They are relatively involved in and knowledgeable about the wine category, with a confidence level to match.
Engaged Explorers are middle-aged consumers, with a significant male bias. They are the most frequent drinkers but only mid-range spenders. Likely due to years spent in the wine category, they are the most involved, knowledgeable and confident segment. They have the broadest repertoire of varietal, origin and brand consumption.
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