Algarve's Wine Sales Surge: 85% Sold Locally as Tourism Fuels Growth

Surge in Local Wine Sales

In 2024, 85% of certified Algarve wine was sold within Portugal, primarily in the region itself. Notably, sales in the hospitality sector rose by 48% in volume and 67% in value, with the average price reaching €21.78 per liter. This remarkable achievement is attributed to the increasing influence of tourism, which encourages locals and visitors alike to consume Algarve's wines.

Local Market Dominance

According to Nielson data, about 70% of Algarve wines are sold locally, whether through the Horeca channel or wine tourism. Exports fluctuate between 12% and 15%, with the remainder consisting of national sales, particularly in the Faro district. The wines are also gaining traction in Porto and Lisbon, where they are featured in upscale restaurants and wine shops.

Positive Growth Trends

Despite a slight decline in total wine sales (down 2% to 1.2 million liters), the wine sector saw a 21% increase in volume and 47% in value compared to the previous year. The average price per liter was €17.51, reflecting a 21% positive variation.

Export Growth

While most certified wine remains local, exports are gradually increasing. In recent years, exports represented 10% of total sales, largely due to tourists tasting local wines during their visits. The export market is primarily focused on European countries like the UK, Netherlands, Switzerland, and also includes North American markets like the USA, Canada, and Brazil.

Economic Landscape and Production

Currently, the Algarve has 60 economic operators, up from 30 in 2016/2017, mostly consisting of small producers with vineyards of four to five hectares. The Indication of Geographic Origin (IG) for Algarve wines accounts for 90% of total sales, while the four Denominations of Origin (DO)—Lagos, Portimão, Lagoa, and Tavira—make up around 10%. The region boasts 1400 hectares of vineyards, with 800 dedicated to certified production.

Promotion Initiatives

To boost international recognition, the CVA (Comissão Vitivinícola do Algarve) is involved in a SIAC project aimed at internationalization. They plan to invite distributors from the UK, Netherlands, and Switzerland to the region this year. The FINE – Wine Tourism Expo in Spain and the Enóphilo Wine Fest in Vilamoura will feature Algarve wines, enhancing visibility and market reach.

Upcoming Events

The CVA will also organize various promotional events, including the "Entre Pratos e Vinhos" from October 15 to November 30, and the 17th Algarve Wine Contest. These initiatives aim to strengthen the connection between local gastronomy and wine, making the region a notable player in the wine tourism sector.