Douro wine region faces grape glut as sales weaken

Portugal’s Douro wine region is facing a supply glut, with more grapes and unsold wine stocks than the market can absorb, according to ECO reporting, in a squeeze that is hitting growers and adding strain to one of the country’s most important wine-producing areas. Industry executives, producers and local representatives told ECO that the imbalance has built up over years as vineyard area expanded while demand for both Port and Douro DOC wines weakened.

Port wine sales have been falling for 26 years, while vineyard area in the Douro has increased by about 25% since 2000, largely to support still wines under the Douro DOC denomination. In 2025, the region generated about €365 million in Port wine sales and €235 million in Douro DOC sales, down 0.2% and 1.5% respectively from a year earlier, based on figures from the Douro and Port Wine Institute released in May.

Adrian Bridge, chief executive of The Fladgate Partnership, described the situation to ECO as an “existential crisis”, saying Port sales are now about 34% below 2000 levels. António Filipe, president of the Port Wine Companies Association, said Douro DOC sales were also down by more than 10% at the end of June this year. He added that the 2026 harvest could produce around 240,000 pipes of grapes for Port and Douro DOC wines, against demand for only 180,000 to 190,000, implying a surplus of about 20%.

The pressure is now most visible at vineyard level. Some growers have been told by major exporters they will not buy grapes beyond contracted volumes linked to the “benefício” system, which sets how much must can be allocated to Port production and remains a key source of income for many farmers. The authorised benefício fell from 104,000 pipes in 2023 to 90,000 in 2024 and 75,000 in 2025, before a slight increase to 76,000 this year.

The sources interviewed by ECO also pointed to rising production costs, weaker global wine consumption and pressure on grape prices. The Douro accounts for about 44% of the total value of Portuguese wine exports, according to the mayor of São João da Pesqueira cited in the report, making the region’s difficulties relevant beyond agriculture and into Portugal’s wider export economy.

Originally published at Eco.pt