Wine Industry Faces “Difficult Times” as Global Consumption Falls and U.S. Tariffs Bite

Chile’s wine industry is confronting falling global consumption, excess production and a new U.S. tariff, but its export reach is helping cushion the impact.

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We are living through difficult times, but fortunately, we export more than 60% of what we produce to more than 100 countries, and that base, together with the domestic market, allows us to get through this moment in a better way.

At a Wine Day gathering in Santiago, producers and public officials discussed joint efforts to revive the sector. Alfonso Undurraga, president of Vinos de Chile, said the industry was going through “difficult times,” but noted that Chile exports more than 60% of its production to over 100 countries.

“That base, together with the domestic market, allows us to get through this moment in a better way,” Undurraga said. He added that Chile no longer depends on its home market as heavily as it once did, and that the industry’s challenge now is to reach new markets as consumption declines.

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There is an objective fact: global wine consumption has fallen by 25%. There is excess production, prices have fallen to worrying levels, and naturally, this must affect the domestic industry.

The United States has imposed a 12.5% tariff on Chilean wine. Undurraga said the industry had worked with the government from the outset to reverse the measure and hoped for positive news soon. Chilean bottled-wine exports fell 7.2% in volume and 10.9% in value in July, with an average price of $27.40 per case, down 4% from the same month in 2025.

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The answer lies in two paths that are not incompatible: bringing into the new market those who were not reaching it until yesterday, and producing things that they did not produce yesterday.

Agriculture Minister Jaime Campos said global wine consumption had dropped 25%, leaving excess stock and pushing prices to worrying levels. He proposed reaching consumers in new markets and producing products Chile had not previously made. ProChile director Lorena Sepúlveda said the country was working to hold Vinexpo Explorer in November, bringing more than 50 international buyers to experience Chilean wine in person.

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We are working hard so that in November our country can host an event called Vinexpo Explorer, one of the leading events worldwide, bringing more than 50 international buyers.