Navigating global pressures: The stability of South Africa's wine export sector

South Africa’s wine export sector recorded stable value performance over the past year despite declining volumes, as producers navigated a challenging global trading environment marked by softer consumption, rising tariffs and increased trade complexity, Wines of South Africa said in a statement on Monday. 

Global wine consumption continued to weaken amid economic pressure, while trade barriers and higher tariffs added further strain to exporters. Against this backdrop, South Africa’s wine industry maintained its focus on sustaining value in established markets while expanding into developing and emerging regions, particularly across Africa and Asia.

Total wine exports reached 264 million litres during the period, with exports accounting for 40% of total sales compared with 60% in the domestic market. Export value amounted to R9.8 billion, representing a 2.4% year-on-year decline, despite a sharper 13.8% contraction in export volumes.

Combined exports of packaged and bulk wine delivered stable overall value year-on-year. Packaged wine export volumes declined by 4.6% but maintained value, while bulk wine exports faced lower demand, offset in part by improved pricing on red and white cultivar wines.

Wines of South Africa (WoSA) CEO Siobhan Thompson said the results reflected the resilience of the industry’s long-term strategy. “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,” Thompson said. “Our focus on prioritising value over volume and concentrating on key markets is proving resilient. While volumes in some developed markets softened, we saw encouraging value growth in core packaged wine markets such as the UK, Canada and Sweden, alongside strong momentum across Africa and parts of Asia.”

Packaged wine continued to perform strongly in value terms. Although export volumes declined by 4.6%, export value remained stable year-on-year, reflecting improved market positioning and pricing discipline.

The United Kingdom remained South Africa’s leading export market and a key anchor for packaged wine exports. While volumes to the UK declined by 7%, export value increased by 4%, highlighting the competitiveness of South African wines in both retail and on-trade channels.

Other priority markets also recorded value growth, including Canada, up 3%, and Sweden, up 1%. Selected non-focus markets reported notable increases in export value during the period.

BUSINESS REPORT