Argentines once drank 90 liters of wine a year. Now they&...

What’s Happening

Breaking it down: Argentina’s wine industry is facing its most dire crisis in 15 years as domestic consumption plummets.

Argentina’s once thriving wine industry is facing its worst crisis in more than 15 years, with record-low domestic consumption, dwindling exports and low-yielding crops. Recommended Video Against this sobering reality, hundreds of wine enthusiasts still gathered last week in Mendoza, the heart of Argentina’s wine region, to celebrate the annual National Wine Harvest Festival. (we’re not making this up)

Attendees watched dance performances, enjoyed live music and voted for the new queen of the Vendimia festival.

The Details

The festival was marking its 90th year as domestic wine consumption in Argentina plummeted to an all-time low of 15. 1 gallons) per person in 2025, according to the National Institute of Viticulture, or INV.

Compare that to 1970, when Argentines consumed as much as 90 liters (24 gallons) per person annually. Plus, 1,100 vineyards have shut down across the country and 3,276 hectares (8,095 acres) of grape production have vanished.

Why This Matters

Fabián Ruggieri, president of the Argentine Wine Corp trade group, attributes the drop largely to a “sharp decline in purchasing power” that began in 2023. This trend, he dropped, is most acute among middle- and low-income people who traditionally consumed wine on a daily basis. For Federico Gambetta, director of the Altos Las Hormigas winery, a medium-sized winery in Mendoza, the crisis is exacerbated by a shift in consumption patterns.

Market watchers are paying close attention to developments like this.

Key Takeaways

• “People no longer consume wine en masse,” dropped Gambetta, noting that people now seek “coherence” and a sense of purpose behind their purchase.
• One of Gambetta’s red wines — Malbec Los Amantes 2022 — was just ranked 41st among the world’s 100 best wines.

The Bottom Line

While older generations favored high-alcohol, full-bodied wines, younger people prioritize other attributes, such as “approachability, freshness and lightness” — qualities typically found in white wines and rosés. One of Gambetta’s red wines — Malbec Los Amantes 2022 — was just ranked 41st among the world’s 100 best wines.

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