Latin America and the Caribbean: Chile’s Wine Industry

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Latin America and the Caribbean: Chile’s Wine Industry

Chile has an established global reputation as one of the best wine producers. As of 2015, the country was the fourth largest wine producer in the world (Christian 2014). The significant growth of the Chilean wine industry is a true testament of the extent to which an aggressive private enterprise coupled with enthusiastic government backing can lead to exponential growth in any given industry in a country (Knowles and Sharples 2002) Apart from these factors, the industry has also significantly grown because of the natural gifts granted to the country such as favorable climatic and soil conditions (Knowles and Sharples 2002). Most of the wine produced in the country is for export purposes. 70% of Chilean wine is exported to other countries. By dint of the Chilean wine industry, there have been significant global connections (economic, social, and cultural) with Latin America and the Caribbean.

The Chilean wine industry has brought about significant economic connection with Latin America. When the influx of wine production commenced during the 1980’s, Chile was exporting 88% of its wine to Latin America (Knowles and Sharples 2002). It was quite apparent that Latin America was significantly contributing to the economic stability of the industry. Although this magnitude of export to Latin America dwindled over time, there has been a significant improvement in recent times especially considering the fact that exports to the EU countries often comes with many regulatory and transportation constraints. The Chilean wine industry has brought about a significant economic connection with the Caribbean. Just like Latin America, the Caribbean has experienced significant economic growth over the past 10 years, and this has resulted in a significant increase in income per capita. This directly leads to the per capita increase in consumption of wine especially considering the fact that there is a rapid increase in the middle class.[1] The import of Chilean wine to the Caribbean translates to global economic connection thereto.

The Chilean wine industry has brought about a significant social connection with Latin America and the Caribbean. As illustrated above, during the commencement of the influx of wine production in Chile, Latin America was the primary export destination (Knowles and Sharples 2002). This was a very viable social position for the Asian country especially considering the fact that wine is a major industry in Chile. One of the major forms of social interactions between two countries is through trade. The Chilean wine industry has resulted in the formation of social ties through trade with Latin America and the Caribbean. Although in the recent times Chile has mainly been exporting to the EU countries (since therein lies countries with the highest per capita consumption rates) export to Latin America and the Caribbean ensures diversification of trade portfolio. Chile has, therefore, signed a free-trade agreement thereto in cognition of the social interaction fostered as a result of the wine industry (Wehner 2011). It is, therefore, apparent that the industry has brought about a significant social connection in the global spectrum.

It is important to note that the Chilean wine industry is highly driven by demand, and demand for wine often goes hand in hand with the culture of the subject matter area. Over the course of time, there has been growing demand for wine in Latin America and the Caribbean. This demand has mainly been propelled by the fact that there is a rapid rise of a middle-class therein (Lazareff 2017). Most of these individuals are young educated people who have stable jobs and who have an appreciation for the western world wine culture. Resultantly, the middle class is significantly propelling the per capita rate of wine consumption in Latin America and the Caribbean. With this backdrop, it is important to note that wine and culture are somewhat intertwined. Different flavors of wine culturally connote different meanings such as relaxation or fun. Wine is also culturally viewed as a prestigious drink. These cultural views are often transmitted to various individuals who partake of the wine. The same cultural views that are held with respect to red wine, for instance, are carried on to various consumers around the world, thus contributing towards the global cultural connection.[2] It is, therefore, quite apparent that the Chilean wine industry has brought about a global cultural connection with Latin America and the Caribbean.

In conclusion, Chile has an established global reputation as one of the best wine producers. As of 2015, the country was the fourth largest wine producer in the world. The Chilean wine industry has led to significant global connections (economic, social, and cultural) with Latin America and the Caribbean. The two regions have significantly contributed to the economic stability of the wine industry. Global social and cultural connection has also been witnessed due to the rise of a middle class and the concurrent increase in per capita consumption of wine.

[1] Per capita consumption; average wine consumption per person.

[2] Global cultural connection; transmission of meanings, ideas and values around the world.