Financing for Balearic Island wineries leaps 93%

Balearic wine is in a phase of “transformation and growth”, says Caixabank, which has significantly upped its financing to the islands this year and started leasing barrels to producers in the region. Sarah Neish investigates.

Speaking to the drinks business, Spain’s Caixabank confirmed that “the wine business in the Balearic Islands is on a path of steady growth.”

Because of this upward curve, the bank has ploughed more than €8million into winery financing in the Balearic Islands (which include Majorca, Menorca, Ibiza and Formentera) between January and August 2025, meaning the Balearics experienced the greatest growth in funding volume across all of Spain this year, 93.3% more than the islands received during the same period in 2024.

“The wine sector in the Balearic Islands is in a phase of transformation and growth,” a spokesperson for Caixabank told db. “In recent years, new plantings have been authorised and more than €8 million euros have been allocated to winery financing. This reflects a growing interest from new producers, including young winemakers, which is very positive for generational renewal in the sector.”

Challenges ahead

However, according to Caixabank, there are also challenges looming in the Balearics.

“Quality wine production decreased by 22% in 2024 compared to the previous year, mainly due to adverse climatic factors,” the spokesperson explained. “In addition, changing consumption habits have forced wineries to focus on quality and differentiation as a survival strategy.”

In response to these challenges, Balearic wineries are using the loans for modernising their facilities, including acquiring machinery, improving production processes, and becoming more energy efficient.

Some Balearic producers are also putting the funds towards restructuring their vineyards, as well as “varietal conversion”, and adaptation to climate change.

Beyond this, loans are being utilised for developing export channels and promoting wines in new markets. “Balearic wines are gaining acceptance both in the national and international markets. Sales of Balearic wines in mainland Spain grew by 75% in 2024, and total exports worldwide increased by 17.5%, with Germany, Switzerland, and Denmark as the main destinations,” said the spokesperson.

“In addition, white and rosé wines from the Balearics are showing growing demand, which indicates a good adaptation to new consumer preferences.”

Strategic services

Due to the growing wine industry in the Balearics, Agrobank (Caixabank’s agricultural arm) has developed services to meet the increasing needs of the islands’ producers. These include the leasing of barrels, as well as offering loans with “special grace periods for new plantations” and subsidy advances.

AgroBank told db it is fully “committed to the agri-food sector in the Balearic Islands.”

“This commitment is demonstrated by the presence of 20 AgroBank branches in the Balearic Islands, where specialists serve more than 9,000 agricultural clients in the islands, with a business volume of more than €1,000 million,” it said.

It’s worth noting that the total sum of financing received by the Balearics in 2024 was substantially less than other Spanish regions, but the growth in financing from year to year (93%) from a small base was enormous. Comparatively, Catalonia was granted €264.3m while Castile-La Mancha and Extremadura received a combined €178m. Loans handed out to Madrid exceeded €100m, and Andalusia welcomed €74.5m.

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