South Africa: Wine Market 2024

Wine Market Size in South Africa

After two years of growth, the South African wine market decreased by -22.5% to $X in 2021. Over the period under review, consumption continues to indicate a slight shrinkage. Over the period under review, the market attained the maximum level at $X in 2020, and then dropped sharply in the following year.

Wine Production in South Africa

In value terms, wine production shrank to $X in 2021 estimated in export price. Overall, production recorded a relatively flat trend pattern. The growth pace was the most rapid in 2014 when the production volume increased by 19%. As a result, production attained the peak level of $X. From 2015 to 2021, production growth remained at a lower figure.

Wine Exports

Exports from South Africa

In 2021, shipments abroad of wine increased by 33% to X litres for the first time since 2018, thus ending a two-year declining trend. Overall, exports showed a relatively flat trend pattern. Over the period under review, the exports reached the peak figure at X litres in 2013; however, from 2014 to 2021, the exports stood at a somewhat lower figure.

In value terms, wine exports surged to $X in 2021. In general, exports, however, recorded a relatively flat trend pattern. Over the period under review, the exports hit record highs at $X in 2013; however, from 2014 to 2021, the exports stood at a somewhat lower figure.

Exports by Country

Germany (X litres), the UK (X litres) and the United States (X litres) were the main destinations of wine exports from South Africa, together comprising 48% of total exports. These countries were followed by Canada, Namibia, the Netherlands, Italy, France, Sweden, Denmark, China, Belgium and Russia, which together accounted for a further 35%.

From 2012 to 2021, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Italy (with a CAGR of +12.0%), while the other leaders experienced more modest paces of growth.

In value terms, the UK ($X) remains the key foreign market for wine exports from South Africa, comprising 21% of total exports. The second position in the ranking was taken by Germany ($X), with a 10% share of total exports. It was followed by the United States, with an 8.4% share.

From 2012 to 2021, the average annual rate of growth in terms of value to the UK stood at +1.7%. Exports to the other major destinations recorded the following average annual rates of exports growth: Germany (-2.1% per year) and the United States (+3.2% per year).

Export Prices by Country

In 2021, the average wine export price amounted to $X per litre, which is down by -9.2% against the previous year. In general, the export price showed a slight setback. The most prominent rate of growth was recorded in 2019 when the average export price increased by 19% against the previous year. As a result, the export price reached the peak level of $X per litre. From 2020 to 2021, the average export prices remained at a lower figure.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was the Netherlands ($X per litre), while the average price for exports to Italy ($X per litre) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to Russia (+12.8%), while the prices for the other major destinations experienced more modest paces of growth.

Wine Imports

Imports into South Africa

In 2021, the amount of wine imported into South Africa skyrocketed to X litres, growing by 34% against the previous year. Over the period under review, imports recorded a notable increase. The most prominent rate of growth was recorded in 2018 with an increase of 109%. Imports peaked at X litres in 2019; however, from 2020 to 2021, imports remained at a lower figure.

In value terms, wine imports soared to $X in 2021. In general, imports saw a strong increase. Imports peaked at $X in 2019; however, from 2020 to 2021, imports remained at a lower figure.

Imports by Country

France (X litres), Italy (X litres) and Portugal (X litres) were the main suppliers of wine imports to South Africa, together accounting for 87% of total imports.

From 2012 to 2021, the biggest increases were recorded for France (with a CAGR of +7.5%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, France ($X) constituted the largest supplier of wine to South Africa, comprising 86% of total imports. The second position in the ranking was taken by Italy ($X), with an 8.9% share of total imports. It was followed by Portugal, with a 1.8% share.

From 2012 to 2021, the average annual rate of growth in terms of value from France stood at +8.7%. The remaining supplying countries recorded the following average annual rates of imports growth: Italy (+5.7% per year) and Portugal (-1.3% per year).

Import Prices by Country

The average wine import price stood at $X per litre in 2021, surging by 31% against the previous year. Overall, import price indicated pronounced growth from 2012 to 2021: its price increased at an average annual rate of +4.1% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, wine import price increased by +113.3% against 2019 indices. The pace of growth was the most pronounced in 2020 when the average import price increased by 63%. Over the period under review, average import prices reached the peak figure in 2021 and is expected to retain growth in the near future.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was France ($X per litre), while the price for Portugal ($X per litre) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Argentina (+4.3%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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