Argentina’s once thriving wine industry is entering a deep slump, with record-low domestic consumption, dwindling exports and shrinking vineyard acreage converging into what industry representatives called the sector’s worst crisis in more than 15 years. The latest figures, cited alongside Mendoza’s annual National Wine Harvest Festival, have underscored how quickly the industry’s demand base has weakened at home while external competition has remained difficult.
Hundreds of wine enthusiasts gathered last week in Mendoza, the heart of Argentina’s wine region, for the National Wine Harvest Festival, which marked its 90th year. Attendees watched dance performances, enjoyed live music and voted for the new queen of the Vendimia festival, even as producers and trade leaders pointed to the continuing pressure on wineries across the country.
Central to the festival’s backdrop was the industry’s domestic downturn. Organizers said Argentina’s National Institute of Viticulture (INV) recorded domestic wine consumption dropping to an all-time low of 15.7 liters (4.1 gallons) per person in 2025. The same INV figures put 1970 consumption much higher, at about 90 liters (24 gallons) per person annually, highlighting the size of the decline over the decades.
The contraction is also visible in production. The INV said 1,100 vineyards have shut down across Argentina and 3,276 hectares (8,095 acres) of grape production have vanished. That output reduction has occurred alongside the shift in what consumers buy, an issue producers said has become more acute for wineries relying on steady volume.
Fabián Ruggieri, president of the Argentine Wine Corp trade group, attributed the steep drop largely to a “sharp decline in purchasing power” that began in 2023. Ruggieri said the trend is most acute among middle- and low-income consumers who traditionally drank wine more regularly.
For Federico Gambetta, director of the Altos Las Hormigas winery in Mendoza, the crisis has been exacerbated by changing preferences. Gambetta said, “People no longer consume wine en masse,” and he described current buyers as seeking “coherence” and “a sense of purpose behind their purchase.” He said consumers, especially younger drinkers, also prioritize “approachability, freshness and lightness,” characteristics that are often associated with white wines and rosés rather than heavier red styles.
Gambetta noted that one of his winery’s red wines, Malbec Los Amantes 2022, was recently ranked 41st among the world’s 100 best wines. At the same time, he said his winery began adapting earlier: starting in 2010, it modified its wines away from a more traditional, heavier profile to better match a younger generation’s shift toward lighter styles. “Everything has mutated,” Gambetta said. “If you’re not dynamic, you’re lost.”
On the export side, the pressure has not eased. As the world’s 11th largest wine exporter, Argentina saw its exports fall to 193 million liters (51 million gallons) in 2025, a 6.8% year-on-year decline and the lowest volume since 2004, according to INV data. Ruggieri said exports are being held back by financing issues, high logistics costs and tariff-driven competitiveness problems in markets where Argentina faces duties that often range between 10% and 20%.
Producers said those costs interact with the inflation environment in Argentina. Gabriel Dvoskin, owner of the 10-hectare Canopus winery, said he exports to 15 countries with the United States as his main market, but that high production costs and rampant inflation make it harder to compete. Dvoskin said, “Our inflation makes us a bit expensive,” adding that his “equivalent in France has a much lower cost for dry inputs — bottles, corks, etc. — than I do.”
Gambetta said the crisis reinforces a lesson for the industry: product quality remains non-negotiable as wineries navigate delicate margins. He said, “Right now, everything is very delicate, and one wrong step can bankrupt you.”