Wine and wine products market in South Africa

Earlier Report Observations

The South African wine market expanded from 348 thousand tonnes in 2018 to 638 thousand tonnes in 2020, valued at 766 million US dollars to 1.29 billion US dollars over the same period. This growth was supported by a shift in consumer preferences toward health-conscious options like zero-sugar sparkling wines and larger bottle formats. The onset of the COVID-19 pandemic in 2020 led to alcohol bans that severely curtailed on-trade sales, but producers rapidly pivoted to home consumption and online sales channels, sustaining volume demand.

From 2021 onward, the market contracted, falling to 489 thousand tonnes by 2023. High global inflation, exacerbated by the war in Ukraine, raised input costs and squeezed profitability. Concurrent supply-chain disruptions at ports and in freight logistics limited export volumes despite international demand. Moreover, a trend toward consumer moderation saw 39% of drinkers globally actively reducing wine intake, accelerating a 'less-but-better' premiumisation that shifted volumes away from entry-level segments.

Regulatory changes also shaped the industry, with Extended Producer Responsibility packaging rules promulgated in November 2020 and enforced from 2022, compelling wineries to adopt recyclable and lightweight packaging solutions. Ongoing political uncertainty and rhetoric directed at farmers dampened investment, while a sharp drop in US imports from 2022 onward further pressured export earnings. Despite the overall volume decline, premium-and-above wines continued to outperform, indicating a persistent premiumisation trend.

Production wine and wine products in South Africa

In kind, 2018-2021, K t

South Africa ranked 9th globally in wine and wine products production from 2018 to 2021.

Top producers of wine and wine products, 2018-2021

World map of production of wine and wine products, 2018-2021

South Africa's production of wine and wine products grew for the third consecutive year. In 2021, the country produced 1 133 K t, a 9.0% increase year-over-year. Between 2018 and 2021, production rose by 19.3%, averaging an annual growth rate of 6.0%.

Annual dynamics of production in South Africa in kind, 2018-2021, K t

In value, 2018-2021, M $ US

South Africa's wine and wine products production value also increased for the third year in a row. In 2021, output was valued at 1 928 M $ US, up 3.6% from the previous year. From 2018 to 2021, production value grew by 36%, with a compound annual growth rate of 10.8%.

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

Exports wine and wine products from South Africa

Exports in kind, K t

After two years of decline, South Africa's wine and wine products exports rebounded. In 2021, export volume reached 580.3 K t, a 31.1% increase year-over-year. However, from 2018 to 2021, exports fell by 14.5%, averaging an annual decline of 5.1%. The lowest volume was in 2020 at 442.8 K t, following the largest drop of 27.5% in 2019.

Annual dynamics of product's exports from South Africa in kind, 2018-2021, K t

From 2018 to 2021, South Africa's wine and wine products exports were distributed across many countries. The top three partners—the United Kingdom (16.6% of exports), Germany (14.7%), and Namibia (12.0%)—together accounted for only 43.3% of total export volume.

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 a two-year decrease, South Africa's wine and wine products export value rose. In 2021, exports totaled 987 M $ US, a significant 24.5% increase year-over-year. Over the 2018-2021 period, export value declined by 2.5%, with a compound annual growth rate of -0.8%. The lowest value was in 2020 at 793 M $ US, after the largest fall of 13.8% in 2019.

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

The export value structure from 2018 to 2021 was fragmented, with no single country dominating. The United Kingdom (15.4% of export value), Germany (9.7%), and Namibia (8.8%) together made up just 33.9% of total flows.

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 wine and wine products to South Africa

Imports in kind, K t

South Africa imported 49.8 K t of wine and wine products in 2021, a robust 21.4% gain from 2020. However, from 2018 to 2021, imports decreased by 34.9%, averaging an annual decline of 13.3%. The highest volume was in 2019 at 95.5 K t, with a 24.7% increase that year, while the lowest was in 2020 at 41.1 K t, following a sharp 57.0% drop.

Annual dynamics of product's imports to South Africa in kind, 2018-2021, K t

From 2018 to 2021, the United Kingdom (41.5% of import volume), Spain (12.0%), and Argentina (11.2%) were the main suppliers of wine and wine products to South Africa, jointly representing 64.7% of total imports.

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

South Africa imported wine and wine products valued at 343 M $ US in 2021, a 56.6% advance from the previous year. Over the 2018-2021 period, import value fell by 4.9%, with a compound annual growth rate of -1.7%. The highest value was in 2019 at 361 M $ US, while the lowest was in 2020 at 219 M $ US, after a 39.3% decline that year.

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

From 2018 to 2021, the leading sources for South Africa's wine and wine products imports by value were the United Kingdom (42.0% of import value), France (28.2%), and the United States (5.6%), together accounting for 75.8% of total flows.

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

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