Brazil: An untapped opportunity for Australian wine in the Southern Hemisphere

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Published Jun 6, 2023

Tridge summary

Brazil is the seventh most populous country in the world and home to the fifth largest city in the world – and the largest in the Southern Hemisphere – Sao Paulo. It is the largest country by land area in the Southern Hemisphere (yes, it is larger than Australia!) and second only to Indonesia in population. Well known for its coffee exports, it is slowly becoming known in the wine sector for its increasing imports of wine.

Original content

This Market Bulletin will give an overview of the current conditions for wine in the Brazilian market. Economic state Like many economies in the world, Brazil has had a turbulent few years. Due to global events and political instability, the local currency (Brazilian Real) has been highly erratic throughout 2020, 2021, and 2022, making it hard for businesses to plan the cost of imported goods . Figure 1: US Dollar/Brazilian Real exchange rate 2019-2023 Source: OANDA Also like many other economies, 2020 resulted in a significant drop in GDP growth, followed by a strong rebound in 2021 (see Figure 2). However, thanks to inflationary pressures and political instability, economic growth is forecast to be muted for the next few years. Inflation reached a level of 9.28 per cent in 2022, which surpassed the inflation rates of the 2014 Brazilian economic crisis (see Figure 3) but are forecasted to moderate in 2023 and beyond. Figure 2: Growth rate of Brazil’s real GDP from 2018 to 2028 ...

Source: WineAustralia