Tariffs bite, but SA wine exports show resilience

Last year, South Africa was among the countries at the receiving end of tariff hikes imposed by the United States, following President Donald Trump’s decision to raise duties on exports to the US.

The wine industry was one of the commodities affected severely by the tariffs. South Africa Wine stated that the wine export performance over the past year reflects an industry navigating significant global challenges while continuing to build resilience through a long-term focus on value growth, market diversification and strategic positioning.

The organisation said 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.

Wine exports stable

According to South Africa Wine, the total South African wine exports reached 264 million litres (the industry’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 Wine said.

Siobhan Thompson, CEO of Wines of South Africa (WoSA), said the country’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.

“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,” she said.

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,” South Africa Wine said.

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.

African markets gain momentum

“Building demand in developing and emerging markets is central to our export strategy. These markets present opportunities for sustainable growth over the long term, particularly as global consumption patterns evolve,” Thompson said.

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,” he said.