Chilean wine exports grow
Published on 24 October 2018
Between January and July of this year, shipments of Chilean wine abroad have increased, mainly due to the boost of the Chinese market.
Except for the United States, the main Chilean wine destinations have maintained a sustained or growing demand. The great variety of strains produced in the country allows us to supply the entire planet with products that stand out with positioned brands, and that facilitate the growth of volumes.
In the following table, you can see the distribution of exports according to variety. These include red and white wines, as well as sparkling and distilled.
It should be noted that the performance of wine exports depends exclusively on volume, unlike commodities such as metals and hydrocarbons, fruit trees and pulp. In this sense, it is striking that there has been an increase in the value of exports in the January-July period compared to the same period of the previous year, despite the fact that the total volume exported fell from 533 million liters to 484 million of liters.
This increase is due to the increase in sales in markets where higher prices are paid, as well as the placement of higher value products. Among these, wines with denomination of origin stand out, and those that are prepared with more than one grape variety. The most important market is, by far, China, which highlights the combination of quantity of consumers with a growing cosmopolitanism in customs.
It is important to note, however, that the main reason behind the increase in exports to China is the increase in demand, and not the focus on higher value products. In the following tables, you can see the evolution of total exports to the five main destinations, both in terms of total value, volume and average price.
On the other hand, it contrasts the fact that in the United States there has been an increase in the average price of the wines sent. This suggests that it is a market with greater competition, in which the consumer receives a more diversified offer, with local products at lower prices. Therefore, it is a market that values the wines with denomination of origin more, or of varieties that do not have substitutes in the national production.
In general, the geographical and climatological conditions of Chile offer great comparative advantages that have been taken advantage of by a consolidated and competitive wine industry. The country brand Wines of Chile is positioned around the world, and its wineries are easily identifiable by consumers. It is expected that it will be easy to place larger volumes in any expanding economy, as well as more expensive products where consumers have a greater culture.
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