South Africa’s Wine Export Strategy Delivers Value Resilience Despite Global Headwinds

"South Africa’s export performance must be viewed in the context of a challenging global environment marked by declining wine consumption, economic pressure and rising trade barriers," said Siobhan Thompson, CEO of Wines of South Africa (WoSA).

"Against this backdrop, our long-term strategy of prioritising value over volume and focusing on key markets is proving resilient. While volumes in some developed markets softened, we saw encouraging value growth in core markets for packaged wine such as the UK, Canada and Sweden, alongside strong momentum across Africa and parts of Asia."

Packaged wine maintains value

Packaged wine volumes fell by 4.6% year-on-year, but export value held steady, reflecting better pricing and stronger market positioning.

The UK, South Africa’s top export market, saw volumes decline by 7% but value increase by 4%. Canada (+3%) and Sweden (+1%) also delivered positive value growth, while some non-priority markets showed gains.

USA market disrupted by tariffs

The US, the world’s largest wine-consuming market, accounts for about 5% of South African export volume and 7% of export value. August 2025 tariff hikes to 30% are expected to impact exports more fully over time.

Early data show packaged wine exports to the US declined 21% in volume and 23% in dollar value, despite exporters working closely with trade partners to retain market listings.

African markets gaining traction

Africa now accounts for more than 10% of South Africa’s wine export value. Packaged wine exports to the continent grew 14%, driven by Kenya (+13%), Zambia (+23%), and Uganda (+24%), supporting WoSA’s strategy of expanding into emerging and developing markets.

"Building demand in developing and emerging markets is central to our export strategy," Thompson added."These markets present opportunities for sustainable growth over the long term, particularly as global consumption patterns evolve."

Bulk wine faces challenges, pricing improves

Bulk wine exports struggled with global oversupply, softer demand, and tariff disruptions, with traditional markets such as the UK, Germany and Belgium recording lower volumes.

However, shipments to Spain and selected African countries, including Nigeria and Zimbabwe, increased. Bulk wine pricing improved, with US dollar per litre values rising for both white and red cultivars, reflecting competitiveness and quality.

Structural reforms key to future growth

Rico Basson, CEO of South Africa Wine, stressed that structural reforms remain critical for sustainable expansion. "The wine industry has demonstrated resilience, achieving value growth in exports despite declining volumes. However, structural constraints continue to hold the sector back.

"Faster implementation of logistics and port reforms, the removal of non-tariff barriers, and reduced regulatory red tape are critical if we are to grow sustainably.

"Strategic trade negotiations must be prioritised to ensure South African wine fully utilises existing trade agreements and gains meaningful access to key and emerging markets. South Africa Wine as an industry body will continue our ongoing close deliberations with the South African Government and relevant stakeholders."

Despite global market complexity, South Africa’s wine industry remains positioned for long-term growth, guided by value focus, market diversification and sustainable practices.