Wine - South Africa

South Africa

Highlights

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Wine market amounts to US$1.1bn in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$552.3m in 2024.
Revenue, combined amounts to US$1.6bn in 2024.
The revenue, at home is expected to grow annually by 1.81% (CAGR 2024-2029).
In global comparison, most revenue, at home is generated United States (US$40bn in 2024).
In relation to total population figures, the average revenue per capita, at home of US$17.76 are generated in 2024.
In the Wine market, volume, at home is expected to amount to 224.4m L by 2024.
Volume, out-of-home is expected to amount to 43.6m L in 2024.
Volume, combined is expected to amount to 268.0m L in 2024.
The Wine market is expected to show a volume growth, at home of -3.2% in 2025.0.
The average volume per person, at home in the Wine market is expected to amount to 3.68L in 2024.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Wine market in South Africa has been experiencing significant growth in recent years.

Customer preferences: South African consumers have shown a growing interest in wine, with an increasing number of people choosing wine as their preferred alcoholic beverage. This shift in consumer preferences can be attributed to several factors. Firstly, there has been a rise in health-consciousness among consumers, leading to a shift away from high-sugar and calorie-rich drinks towards lighter and more sophisticated options like wine. Additionally, wine is often associated with a higher social status and is seen as a more refined choice compared to other alcoholic beverages.

Trends in the market: One of the key trends in the South African wine market is the increasing demand for premium and luxury wines. Consumers are willing to pay a premium for high-quality wines that offer unique flavors and are produced by reputable vineyards. This trend is driven by a growing middle class with higher disposable incomes and a desire to indulge in luxury products. Another trend in the market is the rise of wine tourism. South Africa is known for its picturesque vineyards and scenic wine routes, which attract both domestic and international tourists. Wine tourism offers visitors the opportunity to explore the winemaking process, taste different varieties of wine, and enjoy the beautiful landscapes. This trend has led to the development of wine estates and tasting rooms, creating additional revenue streams for wineries.

Local special circumstances: South Africa has a unique climate and geography that contributes to the growth of its wine industry. The country's diverse terroir allows for the cultivation of a wide variety of grape varietals, resulting in a rich and diverse range of wines. Additionally, South Africa benefits from abundant sunshine and cool ocean breezes, creating ideal conditions for grape cultivation. These natural advantages have helped South African winemakers produce high-quality wines that are gaining recognition on the international stage.

Underlying macroeconomic factors: The South African wine market is also influenced by several macroeconomic factors. The country's growing middle class and increasing disposable incomes have contributed to the rising demand for wine. Additionally, South Africa's participation in international trade agreements has opened up new export opportunities for local winemakers, allowing them to tap into global markets. Furthermore, government support and investments in the wine industry have helped to promote growth and innovation within the sector. In conclusion, the Wine market in South Africa is experiencing growth due to changing customer preferences, including a shift towards healthier and more sophisticated beverage choices. The market is also driven by trends such as the demand for premium wines and the rise of wine tourism. South Africa's unique climate and geography, as well as favorable macroeconomic factors, contribute to the development of its wine industry. Overall, the future looks promising for the South African wine market as it continues to gain recognition and expand its presence both domestically and internationally.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.