Uruguay is a country dependent on tourism from the giants of Argentina and Brazil, and it is here that Uruguay feels the challenge between two demographically important countries. Depending on the economic situation of these two countries, Uruguay's economy will either grow or go into crisis. The main wine-growing region is in the South, with a warm, temperate oceanic climate and relatively high rainfall (1100 mm/year) (INIA, 2020). After a drop in wine exports in 2023, we see a recovery in 2024 to once again reach $18 million. Since 2016, Uruguay has been looking to export more fine wines, with the majority going to Brazil and the USA. 

In 2020, Brazil exported 5.21 million liters of wine for a total value of 8.29 million USD (Comtrade, 2021). The majority of wines exported in 2020 were bottled (82.9% of total volume). Bulk wines accounted for only around 2.3% of exports, and sparkling wines for over 14.8%. The country's main customers are China, the United States, Colombia and Paraguay. 

In recent years, Uruguay has made major investments to restructure the wine industry in order to innovate and adopt good environmental practices and move towards sustainable production. Brazil is developing sparkling wine production, with a growth rate of nearly 25% in recent years. Sparkling wines have gained in quality and reputation, and domestic consumption is on the rise. Both countries have rich terroirs and multiple grape varieties that enable them to produce a variety of wines. 

Wine tourism is also booming in both countries, attracting wine lovers and professionals from all over the world.