Spain Moves Toward Smaller Vineyards and Premium Wines

Spain’s wine sector stands at a pivotal crossroads, preparing to undergo significant structural and strategic transformations over the next five years. According to the recently published report “Spanish Wine Market Forecasts 2025-2030: Strategic Analysis and Projections” by Vinetur on April 25,  the nation’s future in the global wine market will be shaped by a decisive shift towards smaller vineyard holdings, premiumization, and greater international competitiveness.

Spain, currently holding the title of the “world’s largest vineyard area” is expected to see a gradual contraction to approximately 900,000 hectares by 2030. This decline will primarily result from structural consolidation and the abandonment of less economically viable vineyards. Nevertheless, Spain will retain its leadership in vineyard surface area, albeit with a renewed focus on quality over quantity.

The report also highlights increasing production volatility caused by the impacts of climate change, including irregular harvests and variable yields. Despite these fluctuations, Spain’s annual wine production is projected to stabilize at an average of 31 million hectoliters. Wineries are proactively adapting by elevating product value, emphasizing quality improvements to boost average prices across both domestic and export markets.

Export forecasts remain particularly promising. Spanish wine exports are set to reach 21.2 million hectoliters by 2030, with a notable acceleration in value, surpassing €3.5 billion annually. This growth will be driven by strategic shifts toward bottled, organic, and sparkling wines, steering away from bulk wine exports. In a fiercely competitive landscape dominated by France and Italy, Spain’s focus on higher-value segments will be crucial.

Domestically, wine consumption trends present challenges. Household per capita consumption is projected to decline to 6.2 litres annually by 2030, reflecting an aging traditional consumer base and muted engagement from younger demographics. However, the Spanish domestic market’s overall value is forecasted to grow, underpinned by rising price points and a consumer migration toward mid-range and premium wines.

Emerging consumer preferences further illustrate a new market paradigm: the growing demand for organic wines, the surging popularity of low- and non-alcoholic offerings among urban consumers, and the ongoing shift toward e-commerce. Traditional retail channels are expected to lose market share as digital platforms gain traction.

Wine tourism emerges as another key growth pillar. An anticipated increase in winery visits and participation along Spain’s wine routes will diversify revenue streams and enhance brand loyalty, particularly benefiting small and medium-sized wineries that seek to foster deeper consumer connections.

Structurally, the number of active wineries is expected to decline modestly, stabilizing at around 3,780 by the end of the decade. This reflects an industry trend towards consolidation, where scale, operational efficiency, and investment capacity become critical factors for survival and success.

Climate change remains an existential challenge. Spanish viticulture will increasingly rely on sustainable practices, precision agriculture, heat- and drought-tolerant grape varieties, and the exploration of cooler sites at higher altitudes and latitudes to preserve wine quality and regional identity.

Ultimately, Spain’s wine sector is moving toward a lower-volume, higher-value model, prioritizing sustainability, quality, and terroir expression. How effectively the industry adapts to these economic, environmental, and consumer-driven challenges will define its global competitiveness and prestige in the decades ahead.

Source: https://www.vinetur.com

Exclusive Interview with Patricia and María Balbás of Bodegas Balbás – By Liz Palmer

In 2024, Juan José Balbás and Clara de la Fuente entrusted the stewardship of Bodegas Balbás, one of Spain’s most historic wineries, to their daughters, Patricia and María Balbás. This transition marked a significant moment in the winery’s history, as the sisters assumed responsibility as the seventh generation of the Balbás family to lead the enterprise. The origins of Bodegas Balbás trace back to 1777, when Abundio Balbás first began crafting wines from his vineyards. Over the centuries, the winery has maintained its status as a family-owned operation, passing down traditions and expertise through successive generations.

This generational shift coincides with a transformative period for the Ribera del Duero region, which has gained international recognition for its focus on quality and its unique expression of terroir. Within this region lies the “Golden Diamond,” an area renowned for its unparalleled potential to redefine Spanish viticulture. Patricia and María Balbás are resolute in their mission to position Bodegas Balbás as a leader during this pivotal era. Their stewardship encompasses the management of 140 hectares of vineyards, including parcels where some vines are over a century old. These older vines contribute to the complexity and depth of the winery’s offerings.

A defining principle of Bodegas Balbás under the sisters’ leadership is their dedication to authenticity. By cultivating exclusively estate-grown grapes and overseeing every stage of winemaking internally, the Balbás sisters ensure the preservation of the winery’s distinctive character. Their commitment to innovation, sustainability, and heritage underscores their ambition to honor the family legacy while adapting to the evolving landscape of modern winemaking.

Liz Palmer: Which influential women in the wine industry have inspired you throughout your journey?

Patricia & María Balbás: Our mother is the person who has inspired us the most in the industry. When she joined the wine sector, very few women were involved. Since then, fortunately, there has been significant progress in the integration of women. However, it is thanks to cases like hers that today, both of us have experienced such an easy inclusion.

Liz Palmer: Could you share a particularly memorable experience or achievement in your illustrious career?

Patricia & María Balbás: Neither of us has a long career in the wine industry, but in these years, we have faced great challenges, such as the Covid-19 pandemic. That pandemic forced us to develop new strategies and explore new business avenues that we still maintain and support today.

In just a few days, we had to face a complete change in the business structure, move forward in the face of a total shift in the market and society, and that posed a great challenge.

We faced very rapid changes, and one has to be very dynamic to adapt and reinvent oneself.

Liz Palmer: What recent technological innovations have you and your team integrated into your winemaking process?

Patricia & María Balbás: In 2023, we made a significant investment in the winery aimed at specializing our production processes. We introduced smaller stainless steel tanks, concrete tanks, and 2,500 liters fudres, as well as improved the production flow. This has allowed us to be more meticulous in our production, focus even more on quality, and stay at the forefront of the existing technology in the production processes.

Liz Palmer: How do you ensure sustainability and uphold environmental responsibility in your vineyard and winery operations?

Patricia & María Balbás: We are fortunate to produce only from our own vineyards. This allows us to control the entire production process, from the origin until each of our bottles leaves our winery. We do not carry out harmful processes for biodiversity in our vineyards and always ensure manual labor to contribute to the development of local communities. On the other hand, we have several processes for the recovery and maintenance of biodiversity in our vineyards, allowing for the proper development of the local fauna and flora.

Liz Palmer: What are your perspectives on the No and Low Alcohol Wine Revolution, and how has your wine estate adapted to this burgeoning movement?

Patricia & María Balbás: It is true that there is an emerging No Alcohol movement in society. This movement is gaining momentum, and there will come a time of stabilization. What is important is that efforts are focused on preventing the abusive and harmful consumption of alcohol, not penalizing any type of consumption.

As long as it is moderate, the decision to consume or not consume alcohol should be a personal choice and respected.

Liz Palmer: How do you and your team stay abreast of the latest trends and advancements in the wine industry?

Patricia & María Balbás: The best way for us to stay up to date is through direct interaction with each of our clients on a daily basis. This allows us to learn about the latest developments in each market and continue evolving alongside them, together.

On the other hand, attending international trade fairs allows us to see the latest trends each year and understand the evolution of each winery; they represent a meeting point for all the companies involved in the sector, from the producer to the final customer, and are an experience worth enjoying every year.

Liz Palmer: What advice would you offer to young women aspiring to enter the wine industry?

Patricia & María Balbás: We would tell them not to be afraid to venture into this great industry. It’s a very rewarding sector, where you learn new things every day, and the potential for growth is limitless. The integration of women is growing, and more and more of us are taking the lead. We are in one of the best moments, and we must take advantage of it.

Bodegas Balbás Website: https://balbas.es/en/

Wine Review: Two Wines from Marqués de Riscal [voted #1 Vineyard in the World]

Marqués de Riscal

Located in the picturesque Basque Country, the Marques De Riscal winery in Elciego, Spain, is a beacon of viticultural excellence. This historic winery, founded in 1858, has recently been voted the #1 vineyard in the world by the World’s Best Vineyards 2024 and received the Best Vineyard in Europe Award. The winery’s commitment to innovation and quality is also evident in every bottle they produce, making it a must-visit destination. You can explore the stunning vineyards, tour the state-of-the-art winery facilities, and indulge in tastings of their award-winning wines.

At the heart of the Marqués de Riscal City of Wine stands Hotel Marques De Riscal, designed by the renowned architect Frank Gehry. This hotel offers a unique and unforgettable experience, blending modern design with the rich history of the region. With its combination of award-winning wines, luxurious accommodations, and rich cultural experiences, Marques De Riscal is truly a destination that should be on your bucket list!

Website Link: https://www.marquesderiscal.com/en

Wine Reviews

2023 Marques de Riscal Rueda

This organic wine is a testament to Marqués de Riscal’s commitment to quality and innovation. This vibrant white wine, crafted from the Verdejo grape, offers a bouquet of white flowers with hints of grass and fennel. On the palate, it is crisp and refreshing, with a well-balanced acidity that makes it a perfect companion for seafood dishes and light salads. The finish is clean and lingering, leaving a pleasant aftertaste that invites another sip.

90 Points
Liz Palmer

2020 Marques de Riscal Reserva

This Rioja wine is a robust red wine that showcases the depth and complexity of the Tempranillo grape. Aged for 24 months in American oak barrels, this wine exudes rich aromas of licorice, cinnamon and black pepper. The palate is full-bodied and velvety, with well-integrated tannins with a long, persistent finish.

This Rioja Reserva pairs beautifully with grilled meats, hearty stews, and aged cheeses, making it a versatile choice for any occasion.

93 Points
Liz Palmer

Duero Wine Fest 3rd Edition – Part 2

Juan García-Gallardo, Vice President of Junta de Castilla y León opened the Duero Wine Fest 3rd Edition this week in the beautiful Spanish Renaissance city of Salamanca.

He stated that wine is “one of the oils” of the economy of Castilla y León and the its importance.

“It is a fundamental part of the economy of Castilla y León, one of the oil and major sources of wealth, García-Gallardo states, highlighting that the turnover is almost one billion euros, provides 33,000 jobs, and contributes almost 4% of the Gross Domestic Product of Castilla y León.”

García-Gallardo also values the progress taken by the wineries from this region, highlighting that the Ribera del Duero denomination has overtaken Rioja. He further states: “We are going to continue supporting the 16 designations of origin so that they continue to grow in market share, so that they continue to have more facilities and so that they continue to conquer different markets.”

The Duero Wine Fest closed on Tuesday with over 400 attendees. Some key topics for the closing day included: the decline in wine consumption; the importance of the promotion of wine tourism, and the use of technology to reach consumers.

Wine tourism – Global Trends was the main topic of a presentation given by Gergely Szolnok, Professor of Market Research at Geisenheim University. He presented his studies which showed that 80 percent of tourists are not interested in visiting a winery, so wineries must “change their strategies and focus on that type of visitor, seeking to attract them.”

Some of the modifications he recommended include combining gastronomy with wine tourism, taking sustainability into account and adding more innovative aspects such as digital tours or facilitating access for caravan tourism, which is the new big thing!

He also highlighted the importance of the wineries themselves being well-managed, not only in their administrative, production, marketing or vineyard management, but also in terms of the clients and visitors they receive.

The importance of wine tourism was also discussed by Ignacio Gurría, who stated that wine tourism is “the spearhead of wine sales.” In his opinion, wine tourism can be an opportunity to improve consumption.

In his lecture, Impact of New Technologies on the Promotion and Marketing of Douro Wines, Ignacio Gurría, Executive Director of the working group of the Digitalisation and Wine Hub of the FEV (Digitalisation and Wine Markets),
shared his position on digitalization and wine markets and encouraged wineries to implement a digitalization strategy in their marketing program: “In technology you are never late, you arrive good or bad, that is the reality; it is not a question of time, but to do it well” he states.

For digitalization, he further urged wineries to have websites, to have their digital presence controlled, and he insisted on having good data: “Good data is valuable to the winery, which should be the objective.

The congress was promoted by the Department of Agriculture, Livestock and Rural Development of the Government of Castilla y León through the Agrarian Technological Institute, which has the objective is to position the Duero as one of the most important wine rivers in the world.

The main objective of the International “Duero Wine” Congress is to value the hydrographic basin of the Duero River as a unique territory, sustaining quality wines with different personalities, disparate flavors, to which are added the wines of Bierzo, endowed with its characteristic Atlantic nature, and the singularities of Sierra de Salamanca and Cebreros.

The Duero Wine Fest 2024 presentations can be seen on the congress’s YouTube channel:
https://www.youtube.com/@duerowinefest2024/videos

Duero Wine Fest 3rd Edition – Part l

This morning Tim Atkin MW provided an overview of the “Present and Future of Duero Wines” at the opening ceremony of the “Third Edition Duero Wine Fest” which is held this year in Salamanca Congress Palace, Spain.

This year’s motto “Building a value proposition from the territory” brings together foremost national and international trade experts, along with local and national politicians.

For two days, the Salamanca Conference Center will be hosting presentations by academics, wine journalists, and include wine tastings led by sommeliers. These presentations, tastings and round tables all focus on the Duero as one of the most important wine rivers in the world.

Other wine personalities speaking include Sara Jane Evans of Decanter magazine – Spain, who will provide her view of the Duero, along with Gergely Szolnoki, a wine tourism expert, who will speak on current global trends.

The congress also includes a series of debates such as wine marketing, wine tourism and the impact of global warming on viticulture, highlighting the importance of the wine sector for the economy of Castilla y Lion.

Watch this space for updates…