Rebounding South African Wine Industry facing Rising Imports and Growing Stocks 2020

Country:
South Africa

Report Highlights: Post estimates that the wine grape production will increase marginally by one percent to 1.25 million Metric Tons (MT) in the calendar year 2020, due to the improved availability of irrigation water, favorable weather conditions, improved yields, and some regions that have recovered from the 2016 to 2018 drought conditions. This will result in a 0.1 percent increase in wine production to 947 million liters in 2020. While the South African wine industry is showing signs of rebounding, it is faced with growing imports from low value wine suppliers and rising stocks. Imports from the United States are minimal at 32,172 liters in 2020, due to a high import tariff of 25 percent and abundant wine supply in South Africa. However, there may be potential for growth in U.S. premium wine exports to South Africa, targeting restaurants, hotels, wine clubs and private premium wine consumers.

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