Sustainable Packaging Shift Reshapes Cost And Export Strategy For South African Wine Producers

Global consumer expectations are changing toward environmental accountability and convenience, prompting wine producers to ask how their packaging can evolve without compromising quality or brand heritage. For South African wine farmers and agricultural producers, this balance has significant implications for on-farm cost structures and export competitiveness.

Changing market dynamics in packaging

Internationally, the alcoholic beverage packaging market is expanding steadily. The Middle East and Africa alcoholic drinks packaging market, which includes wine, beer and spirits, was valued at $16 billion in 2024 and is forecast to grow at a 4.5% compound annual growth rate (CAGR) through 2033. South Africa is expected to be a key growth country within this region during the decade ahead.

This growth demonstrates a rising per capita consumption and a transition in package value and format choice, including lighter, more sustainable materials such as aluminium and rPET (recycled PET).

Parallel to this, we can’t ignore the pace at which the South African label market is evolving. Sustainability, material innovation, and visual impact are dominating trends as winemakers and brands compete for attention on crowded shelves.

Not the traditional glass route

India and Western markets have shown strong growth in alternative wine packaging formats. The Canned Wine Market Size and Share Forecast Outlook 2025 to 2035 indicates that the global canned wine market was worth around $1.5 billion in 2025 and is predicted to nearly double to $3.4 billion by 2035, with an 8.5 % CAGR. Factors driving this growth include portability, convenience for casual consumption occasions, and lower logistics costs compared with glass.

While canned wine remains a niche globally, and even more so in South Africa, the trend hints at consumer openness to formats that break traditional wine norms, particularly among younger demographics.

Sustainability and local imperatives

Local wineries increasingly recognise sustainability as a core brand value. Environmental credentials, from recyclable materials to reduced carbon footprint, influence consumer loyalty and profitability.

According to SAWIS’s most recent trends outlook, bag-in-box formats have contributed an extra 40 million litres to South African wine sales without cannibalising glass bottle volumes, illustrating consumer acceptance of alternatives when quality perception remains high.

Quality first, sustainability always

Karl Lambour, General Manager at Tokara Wine and Olive Estate, emphasises that for wine producers, packaging decisions must be grounded in a holistic view of quality and brand promise: “Packaging is part of the wine experience. Consumers still equate glass with heritage and premium quality. At the same time, we cannot ignore sustainability. Our approach is to assess lifecycle impacts, recyclability and transport efficiency alongside the sensory integrity of the wine itself.”

He stresses that for many South African producers, especially those focused on exports, glass remains a benchmark for quality and perception. However, he affirms that innovative pack formats can complement a portfolio when used thoughtfully, e.g., for entry-level ranges or outdoor/leisure occasions where portability adds value,  without detracting from the wine’s story.

The balancing act for producers

For agricultural and wine farmers, the calculus of packaging must weigh:

• Environmental impact: Glass offers high recycling value but is heavy and energy-intensive to produce and transport. Lighter materials like aluminium or recyclable board offer lower transport emissions but require consumer education and recycling infrastructure to realise environmental benefit.
• Brand integrity: Premium wines often rely on traditional formats that signal quality and terroir expression. Alternative formats must be integrated without diluting brand equity.
• Cost structures: Packaging can account for up to 30% of total bottle costs in export markets (variable by material and logistics), making sustainable innovations both an environmental and economic consideration.

While our wine industry navigates uncertain economic conditions, including softening volume demand in some segments, packaging innovation offers risk and opportunity. Leveraging data-backed market growth forecasts and embracing formats that respect quality and sustainability will be key to ensuring resilience and relevance in global and domestic markets.