Grape wine market in South Africa

Earlier Report Observations

South Africa's grape wine market volume grew from 434 million liters in 2018 to 683 million liters in 2020. This expansion coincided with a severe drought that reduced wine grape harvests in preceding years, followed by the onset of the COVID-19 pandemic. Alcohol sales bans and transport restrictions during lockdowns disrupted exports and led to a significant accumulation of stocks, increasing the volume of wine available on the domestic market.

The market volume then entered a phase of contraction, declining to 633 million liters by 2022. High fuel prices, sustained interest rate hikes, and low returns on investment put substantial financial pressure on wine growers, leading to a reduction in vineyard area below 90 000 hectares for the first time since 1998. The industry also focused on clearing excess stocks by exporting a higher proportion of wine in bulk format. New Extended Producer Responsibility regulations for packaging were introduced, adding to operational considerations.

By 2023, the market volume had further decreased to 577 million liters. A sharp 50% drop in wine exports to the United States significantly impacted overall volumes. Ongoing challenges such as political uncertainty, farmer security concerns, and persistent rolling blackouts (loadshedding) continued to pressure producers and constrain the market.

Production grape wine in South Africa

In kind, 2018-2021, M l

South Africa was among the world's top grape wine producers from 2018 to 2021, ranking 9th globally by production volume.

Top producers of grape wine, 2018-2021

World map of production of grape wine, 2018-2021

Grape wine production in South Africa grew for the third consecutive year. In 2021, the country produced 1,133 million liters, marking a modest 9.0% increase from the previous year. Over the 2018-2021 period, production rose by 19.3%, with an average annual growth rate of 6.0%.

Annual dynamics of production in South Africa in kind, 2018-2021, M l

In value, 2018-2021, M $ US

Following two years of growth, South Africa's grape wine production value declined. In 2021, output was valued at 1,770 million US dollars, representing a 1.3% contraction compared to 2020. However, over the 2018-2021 period, production value increased by 27.6%, with an average annual growth rate of 8.5%. The highest value was recorded in 2020 at 1,793 million US dollars, while the largest annual increase occurred in 2019 at 27.0%.

Annual dynamics of production in South Africa in value, 2018-2021, M $ US

Exports grape wine from South Africa

Exports in kind, M l

After two years of decline, South Africa's grape wine exports rebounded. In 2021, the country exported 479.7 million liters, showing a significant 32.7% year-over-year increase. Despite this recovery, exports decreased by 10.4% over the 2018-2021 period, with an average annual decline of 3.6%. The lowest export volume was recorded in 2020 at 361.4 million liters, while the largest annual drop occurred in 2019 at 31.8%.

Annual dynamics of product's exports from South Africa in kind, 2018-2021, M l

From 2018 to 2021, South Africa's grape wine exports were distributed across a wide range of markets. The United Kingdom (20.7% of export volume), Germany (18.2%), and Namibia (7.9%) together accounted for 46.7% of total exports, with numerous other countries holding smaller but meaningful shares.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from South Africa in kind, 2018-2021

Exports in value, M $ US

Following two years of decline, South Africa's grape wine export value increased. In 2021, exports totaled 749.2 million US dollars, rising 20.2% year-over-year. However, over the 2018-2021 period, export value decreased by 4.1%, with an average annual decline of 1.4%. The lowest value was recorded in 2020 at 623.1 million US dollars, while the largest annual decrease occurred in 2019 at 15.4%.

Annual dynamics of product's exports from South Africa in value, 2018-2021, M $ US

During 2018-2021, key buyers of South African grape wine by value included the United Kingdom (19.7% of export value), Germany (11.8%), and the Netherlands (7.5%). Together, these three markets accounted for 39.1% of total export value, with the remaining 60.9% distributed among many other trading partners.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from South Africa in value, 2018-2021

Imports grape wine to South Africa

Imports in kind, M l

The import market showed significant volatility throughout the period. Imports reached their lowest point in 2021 at 2.5 million liters, representing a dramatic 47.6% year-over-year decline. The peak was recorded in 2019 at 35.4 million liters, creating a 14.1-fold difference between the highest and lowest years. The largest annual increase occurred in 2019 at 89.6%, while the steepest decline was in 2020 at 86.5%.

Annual dynamics of product's imports to South Africa in kind, 2018-2021, M l

From 2018 to 2021, Argentina and Spain dominated South Africa's grape wine imports by volume, jointly accounting for 83.0% of total imports, with the remainder coming from other markets.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to South Africa in kind, 2018-2021

Imports in value, M $ US

Import values showed noticeable fluctuations during the period. The lowest point was recorded in 2020 at 25.3 million US dollars, while the peak occurred in 2019 at 52.0 million US dollars, creating a 2.1-fold difference between these years. In 2021, imports rebounded to 43.5 million US dollars, representing a sharp 72.0% increase compared to 2020. The largest annual decline was recorded in 2020 at 51.3%.

Annual dynamics of product's imports to South Africa in value, 2018-2021, M $ US

From 2018 to 2021, France dominated South Africa's grape wine imports by value, accounting for 72.6% of total import value, while other trading partners held relatively minor shares.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to South Africa in value, 2018-2021