Global wine consumption has continued to soften amid economic pressure, rising tariffs and increased trade complexity. Against this backdrop, South Africa’s wine industry has remained focused on sustaining value in established markets while expanding its footprint in developing and emerging regions, particularly across Africa and Asia.
Total South African wine exports reached 264 million litres (the sector’s export versus domestic sales is 40:60) generating R9.8 billion (US$548.5 million) in export value, a 2.4% year-on-year decline despite a 13.8% contraction in volumes.
Year-on-year, South Africa’s total wine export sales, comprising packaged and bulk wines, delivered stable overall value performance, with packaged wine volumes declining by 4.6% while maintaining value, and bulk wine exports facing lower demand but achieving improved pricing on red and white cultivar wines.
“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 performs in value terms
Packaged wine continued to grow in value terms. While packaged export volumes declined by 4.6%, export value held steady year-on-year, reflecting improved market positioning and pricing discipline.
The United Kingdom, South Africa’s leading export market, remained a key anchor. Although volumes declined by 7%, export value increased by 4%, emphasising the resilience of South African wines in competitive retail and on-trade environments.
Other priority markets delivering value growth included Canada (+3%) and Sweden (+1%), while selected non-focus markets also showed notable increases.
USA market disruption
The USA is a significant market for South African wine exporters and remains the largest wine-consuming market globally. Historically, South Africa’s export exposure to the USA has been relatively stable, accounting for approximately 5% of export volume and 7% of export value.
The US government's implementation of tariffs in August 2025 had a disproportionate impact on exporting countries due to varying tariff rates. South African wine is now subject to a 30% tariff, the full effect of which will only become evident later this year as updated trade data is released. This delayed effect reflects a range of short- to medium-term mitigation measures taken by exporters, who worked closely with their US trade partners to retain listings and maintain market presence.
Despite these efforts, 2025 export data show a significant decline, with packaged wine exports to the USA decreased by 21% in volume and 23% in dollar value.
Africa markets gain momentum
Africa, which now accounts for more than 10% of total export value, remains an important growth region. Packaged wine exports to the continent recorded steady value growth of 14%, driven by strong performances in Kenya (+13%), Zambia (+23%) and Uganda (+24%). This growth reflects Wines of South Africa’s ongoing strategy to diversify exports beyond traditional destinations.
“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 headwinds, but pricing improves
Bulk wine exports faced a more challenging year, due to a combination of global oversupply, softer demand and tariff disruptions. Traditional bulk markets such as the UK, Germany and Belgium declined, although volumes shipped to destinations including Spain and selected African markets, such as Nigeria and Zimbabwe, increased.
Encouragingly, bulk wine pricing improved, with US dollar per litre values rising for both white and red cultivar wines, reflecting underlying quality and competitiveness.
Structural reform remains vital
Commenting on the broader export environment, Rico Basson, CEO of South Africa Wine, emphasised the need for structural reform to unlock future growth.
“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.”
While global market conditions remain complex, South Africa’s wine industry continues to adapt through a disciplined focus on value, diversification and long-term sustainability. These fundamentals position the sector to respond to evolving consumer trends and to capitalise on opportunities as global markets stabilise.