After navigating a turbulent 2024, the South African wine industry enters 2025 with a sense of cautious optimism, buoyed by the highest levels of consumer confidence seen since 2019. According to Vinimark’s Q1 Market Review, while the past year brought notable challenges - including a decline in fourth-quarter sales volumes - market resilience and strategic pivots are setting the tone for a more promising year ahead.
December 2024 saw wine sales reach R1.4 billion, a figure that, although slightly lower than the previous year, points to a market in flux rather than decline. Headwinds such as reduced out-of-home dining are being offset by a growing appetite for premium, curated experiences. Consumers may be dining out less frequently, but when they do, they’re choosing to spend more - especially on elevated wine offerings.
This shift is underscored by strong performance in the R200+ wine category, which saw a 6% year-on-year increase. However, Oelof Weideman, Head of Insights at Vinimark, cautions that this is not pure premiumisation but rather a reflection of deepening economic stratification. “The sub-R80 market is struggling,” he notes, “with a worrying 5.6% decline.”
Amidst changing preferences, varietals like Chenin Blanc and Chardonnay continue to rise, with Chenin seeing 1.6% growth and 150 new labels entering the market since 2018. The varietal’s average pricing is also on the rise, nudging the overall category upward.
Innovation is not limited to what’s in the bottle. Sparkling wine in cans is emerging as a fast-growing segment, appealing to younger, on-the-go consumers. Meanwhile, promotional strategies are being refined. “Clean promotions” - shorter, deeper discounts spaced out over time - have proven 42% more effective than extended markdowns.
Retail fundamentals are more crucial than ever. Loyalty programmes have become essential tools in managing consumer spend and building brand affinity. “Retailers and producers must collaborate on targeted, value-driven initiatives,” says Sales Director Riaan Rautenbach.
And 2025 holds more than just commercial promise - it’s a year of celebration. Pinotage, South Africa’s signature varietal, turns 100. Helen Kock, Brand Portfolio Director at Vinimark, sees this centenary as a “historic opportunity to showcase our winemaking heritage to the world,” with key moments planned at global events like the Paris Expo and Cape Wine.
As the industry looks to the future, the message is clear: sustainable growth will come from thoughtful pricing, authentic brand building, and an embrace of changing consumer behaviours. With solid foundations and a renewed sense of purpose, South Africa’s wine industry is well-positioned to turn resilience into resurgence.
Find out more at www.vinimark.co.za
