The U.S. wine market is undergoing a significant transformation, and Chile is emerging as one of the most prominent players in this changing landscape. After years of challenges and setbacks, 2024 has marked a turning point for Chilean wine exports to the United States, paving the way for a 2025 full of opportunities.
From adversity to resurgence
The journey has not been easy for Chilean producers. For eight consecutive years, sales in the U.S. market experienced a constant decline, with an 8.5% drop in bottled wine sales during 2023, according to Impact Databank. Additionally, devastating wildfires affected several wine regions in the country, forcing many producers to uproot vineyards to manage the oversupply.
However, 2024 has brought unmistakable signs of recovery. Overall Chilean wine exports to the U.S. grew an impressive 12.5%, while bottled wine shipments increased by more than 25%, according to Chilean customs reports. This rebound not only reflects a recovery in volume but also a growing recognition of the exceptional quality that defines these wines.
Undeniable quality in a strategic price range
The $10-$20 per bottle segment is emerging as the most promising in the U.S. market, and Chile is perfectly positioned to capitalize on this trend. Of the more than 100 Chilean wines evaluated in this price range over the past two years, 67% scored 88 points or higher on Wine Spectator’s 100-point scale, demonstrating outstanding quality.
At the premium end of the spectrum, the recognition of Viña Don Melchor Cabernet Sauvignon Puente Alto Vineyard 2021 as Wine Spectator’s 2024 Wine of the Year reaffirms Chile’s ability to produce world-class wines.
Additionally, James Suckling has recently awarded 100 points to Chilean wines such as Clos Apalta and VIK.
The challenge of premiumization
On the other hand, Chilean wine remains strongly positioned in the low-price category, making its rise to more premium segments challenging.
The statistics are revealing: 81% of Chilean wines exported to the U.S. sell for less than $10 per bottle. Although wines in the $10-$20 range represent only 17% of the volume, they account for nearly 30% of the value, highlighting this segment’s economic potential.
Leading varieties driving change
Chile’s industry leader, Concha y Toro, has highlighted Sauvignon Blanc as a fast-growing variety, exemplified by Casillero del Diablo Sauvignon Blanc, whose U.S. retail sales increased by 32% last year.
New tariffs: Opportunity or threat?
At Toral Wines & Spirits, we believe that, although this is still a developing issue, the fact that all wine-producing countries will have to pay a tariff starting at 10% somewhat levels the playing field. Wineries that are already well-positioned will have a competitive advantage due to their shelf presence.
On the other hand, we recommend that producers maintain close relationships with U.S. importers, who will be increasingly focused on adjusting their pricing structures with distributors and retailers. Demonstrating empathy and supporting them will be key to maintaining a strong relationship with importers, who will also face additional work in other categories, such as European wines.
HS Cabernet Sauvignon: A representative of chilean wine’s new era
In this context of transformation and opportunity for Chilean wines in the U.S. market, HS Cabernet Sauvignon emerges as a perfect representation of what Chile has to offer. This wine embodies the ideal combination of Chile’s winemaking tradition and the innovative practices that are elevating its product quality.
With the exceptional 2021 and 2022 vintages as its foundation, HS Cabernet Sauvignon harnesses Chile’s renowned terroir to deliver a premium experience at a competitive price, strategically positioning itself to attract new consumers. This is precisely the opportunity Chile needs to seize in order to solidify its presence in the U.S. market throughout 2025.
Source: Wine Spectator
