Country Profile: Wine Sector in South Africa
Wine sector accounted for a volume share of 1.52% of the global market and 84.5% of the regional (Middle East & Africa) market, in 2016. The sector was valued at R17,328.1 million (US$1,179.2million) in 2016 and is expected to grow at a CAGR of 2% during 2016-2021. The sector is driven by the large base of young population in the country, which is a major consumer segment for Wine. Furthermore, growing demand for Red Wine and Rose Wine over other alcoholic beverages isalso fuelling growth in the sector. Per capita consumption stood at 9.5 liters compared to the global and Middle East & Africa levels of6.2 liters and 4 liters, respectively, in 2016.
Still Wine was the largest with value sales of R13,348.6 million (US$908.4million) in 2016. However, the Sparkling Wine market is expected to grow the fastest at a CAGR of 3.2% during 2016-2021,compared to Fortified Wine at 2% and Still Wine at 1.8%.
Hypermarkets & Supermarkets was the leading distribution channel in the South African Wine sector, accounting for a total volume share of 43.4% in 2016. On-trade transactions accounted for a 34% share in the same year. It was followed by Food & Drinks Specialists with a 21.1% share.
Glass is the most commonly used package material in the South African Wine sector. In 2016, it accounted for a volume share of 73.2%, followed by Rigid Plastics and Paper & Board, with shares of 16.1% and 10.7% respectively, The consumption of Wine was higher among the male population in 2016 compared to females. In terms of consumption by age group, Early Young Adults and Older Consumers accounted for the largest share of 52.3%.
The top five brands in the South African Wine sector accounted for a 34.5% volume share in 2016.Namaqualed the sector with 11.9% share in 2016. It was followed by Paarle Perle with a share of 8.3%.
The report Country Profile:
Wine Sector in South Africa provides insights on high growth markets to target, trends in the usage of packaging materials, category level distribution channel data and market share of brands.
In particular, this report provides the following analysis -
Companies mentioned in this report:
- Market data: Overall market value and volume data with growth analysis for 2011-2021.
- Category coverage: Value and growth analysis for Sparkling Wine and Still Wine with inputs on individual category share within each market and the change in their market share forecast for 2016-2021
- Leading players: Market share of brands and private labels, including private label growth analysis from 2011-2016
- Distribution data: Percentage of sales within each market through distribution channels such as On-trade, Hypermarkets & Supermarkets, Convenience Stores, Food & Drinks Specialists, and others
- Packaging data: consumption breakdown for package materials and pack types in each market, in terms of percentage share of number of units sold. Package material data for Glass, Rigid Plastics, Paper & Board, Flexible Packaging, Rigid Metal and others; pack type data for: Bottle, Stand Up Pouch, Bag-In-Box, Carton-Liquid and Can.
Distell Group Limited, Jonkheer Farmers Winery (Pty) Ltd, Kwv Holdings Ltd, Dgb(Pty) Ltd, De Krans Wine Cellar, Symington Family Estates, Quinta Ferreira Estate Winery, Van Loveren, LVMH Moet Hennessy - Louis Vuitton, House Of Krone, Clos Cabriere (Pty) Ltd., Nederburg, Graham Beck Wines, Simonsig, Villiera, Boschendal Wineries, Cafe Culture, Tulbagh Winery, Bollinger, Robertson Winery, Spier, Namaqua Wines, The Cape Winery, Stellenbosch Vineyards, Edward Snell & Company, Swartland Winery, Boekenhoutskloof Winery, Arabella Wines, E & J Gallo Winery.Scope
Reasons to buy
- The Wine sector in South Africa accounted for 84.5% volume share in the Middle East & Africa region
- South Africa ranks third on the extent of fragmentation
- The top five brands accounting for a 28.7% share in 2016.
- The per capita consumption of Wine is higher in South Africa compared to the regional and global levels
- Per capita consumption of Still Wine and Fortified Wine is higher in South Africa compared to global and regional levels
- Identify high potential categories and explore further market opportunities based on detailed value and volume analysis
- Existing and new players can analyze key distribution channels to identify and evaluate trends and opportunities
- Gain an understanding of the total competitive landscape based on detailed brand share analysis to plan effective market positioning
- Access the key and most influential consumer trends driving Wine consumption, and how they influence consumer behavior in the market which will help determine the best audiences to target
- Our team of analysts have placed a significant emphasis on changes expected in the market that will provide a clear picture of the opportunities that can be tapped over the next five years, resulting in revenue expansion
- The packaging analysis report helps manufacturers, in identifying the most commonly used packaging materials in the sector
- Analysis on key macro-economic indicators such as GDP per capita, population (overall and breakdown by age), and consumer price index. It also covers a comparative analysis of political, economic, socio-demographic, and technological indicators (PEST) across 50 countries.