Spain: Wine ends a complex 2024 due to drought and awaits new opportunities with Mercosur

In 2024, the wine industry is navigating challenges like drought and climate change, leading to a 7% drop in projected production. However, optimism persists due to trade agreements like Mercosur, which will reduce tariffs on EU wines. The Spanish Wine Federation notes a recovery in national consumption, though not yet at pre-pandemic levels, and strong export performance in some regions despite international instability. Quality remains high, with a shift in sales from red to white and rosé wines. The industry is hopeful for continued production and export recovery, especially during the festive season, with the U.S. as a key market. The last two months of the year are crucial for sales, as wine is a popular choice for celebrations and toasting.

Wine has experienced a year of uncertainty in wine-growing areas in 2024 as a result of drought and the drop in production of some varieties, but the sector is optimistic and hopes for a better future, especially after agreements such as Mercosur. According to the information provided after the signing of this agreement on December 6, in the wine sector, tariffs of up to 35% are currently applied to EU wines entering Mercosur, but with the agreement, tariffs for bottled wine will be progressively eliminated (in eight years). Climate change and drought have been two of the handicaps that wine has encountered in this year 2024, but they have not been the only ones; labelling, depressed consumption and the postponement of vineyard planting in some areas to avoid saturating the market have been other challenges. As for the harvest, a final production of 37 million hectolitres was projected, 7% less than the amount expected at the start of the campaign, but a value that will help not ...