South African wine exports declined notably in 2025, reflecting ongoing challenges in the global wine market, including reduced consumption, trade barriers, and logistical constraints.
According to the latest annual report published jointly by Wines of South Africa (WoSA) and South Africa Wine (SAW), total export volumes fell by 13.8% to 264 million liters, marking one of the most difficult years for the sector since the pandemic.
In value terms, exports decreased by 4.7% in rand, totaling R9.8 billion, equivalent to USD 607.6 million. When measured directly in US dollars, export value reached USD 548.5 million, representing a 2.4% decline compared to 2024. Currency fluctuations partly cushioned the impact of lower volumes, but could not fully offset the contraction in demand across several key markets.
Bottled Wine Shows Greater Resilience
Bottled wine exports demonstrated relative stability compared to bulk shipments. Revenue from bottled wine fell by just 2% in rand, reaching R7.7 billion, while in US dollar terms it recorded a 0.4% increase to USD 431 million. Export volumes of bottled wine declined by 4.6%, settling at 117.6 million liters.
These figures underline the industry’s ongoing strategic shift toward value-driven exports, prioritizing higher-quality bottled wines over bulk shipments. Improved pricing helped soften the decline, even as overall volumes continued to contract.
Bulk Wine Hit Hard by Oversupply and Tariffs
Bulk wine exports were significantly more affected. The value of bulk wine sales dropped by 13.4% in rand to R2.1 billion and by 11.4% in US dollars to USD 117 million. Export volumes fell sharply by nearly 20%, reaching 146.4 million liters.
According to the report, bulk wine was particularly exposed to global oversupply, weakening demand, and the introduction of new trade tariffs. Despite these challenges, the average price per liter in US dollars increased for both red and white wines, reflecting improved pricing discipline and a gradual move away from low-margin sales.
Key Export Markets Under Pressure
The United Kingdom remained South Africa’s largest export destination in 2025, with sales totaling USD 145 million, although growth remained flat year-on-year. Germany ranked second, with exports declining by 9% to USD 48 million.
Exports to the United States, the fifth-largest market, fell sharply by 28% to USD 28 million. The introduction of 30% US tariffs in August had an immediate and significant impact on South African wines, along with other international suppliers. WoSA and SAW noted that the full consequences of these tariffs are expected to become clearer later in the year.
Africa Emerges as a Growth Market
In contrast to declining traditional markets, African destinations showed strong momentum in 2025. Sales to African countries now account for more than 10% of South Africa’s total export value, with revenues rising by 13% to USD 55 million.
Notable growth was recorded in Kenya (up 10% to USD 8 million), Zambia (up 22% to USD 6 million), and Uganda (up 24% to USD 3 million). Total export volumes to Africa increased by 1% to 24 million liters. Nigeria remained the largest volume destination, importing 4.2 million liters, despite a slight year-on-year decline of 1%.
Strategic Focus on Value and Diversification
Siobhan Thompson, executive director of WoSA, emphasized that the 2025 results must be viewed against the backdrop of declining global wine consumption and broader economic uncertainty. She highlighted South Africa’s strategic focus on value over volume, particularly in key bottled wine markets such as the UK, Canada, and Sweden, while also underlining the importance of expanding in Africa and Asia.
Rico Basson, executive director of South Africa Wine, noted that the industry succeeded in raising export value per liter despite falling volumes. However, he stressed that structural challenges, including port inefficiencies, logistical bottlenecks, and regulatory barriers, continue to limit growth. Basson called for accelerated logistics and port reforms and the removal of non-tariff barriers to better utilize existing trade agreements and unlock new markets.
Outlook: Quality-Led Growth Amid Uncertainty
The report concludes that South Africa remains committed to emerging markets and geographical diversification, positioning quality and brand value at the core of its export strategy. While 2025 highlighted the sector’s vulnerabilities to global disruptions, it also reinforced the industry’s determination to strengthen its international standing through premium positioning, market diversification, and structural reform in an increasingly competitive global wine landscape.
Source: Vinetur