Boxed wine continued to record strong growth in 2021 relative to bottled wine. This indicates a major shift in the buying patterns of wine consumers in South Africa, with the category traditionally dominated by bottled wine.
Following a turbulent 2020 for wine, 2021 recorded impressive growth for both budget-friendly and premium brands. Leader 4th Street, a lower-priced brand, witnessed exceptional double-digit growth in 2021, based on declining average incomes, thereby increasing demand for more accessible options.
Canned sparkling wine performed well in 2021, indicating another change in consumer preferences in terms of packaging. Several characteristics of the product have benefited its growth.
Off-trade wine sales are expected to continue to dominate overall volumes in South Africa over the forecast period, supported by consumer preferences and changes in terms of both where wine is being consumed, along with changes to the quality level of wine demanded. Following the easing of COVID-19 restrictions and alcohol bans, local consumers are expected to frequent on-trade more than during the peak of the pandemic in mid-2020.
With rising vegan prevalence across South Africa and the world, producers are searching for alternative strategies to process wine that will align with this growing consumer trend and tap into a growing market. However, this remains a challenge for producers as there are limited substitutions for the fining process (designed to remove unwanted elements using a chemical reaction), which are typically derived from animal products such as egg white or milk protein.
Following trends in other categories, wine producers are expected to enter the lower alcohol wine segment, driven by continued health and wellness trends. One example is Distell Group, with the launch of its Durbanville Hills Light Chenin Blanc and Shiraz range, which contains only 9% alcohol and claims to have approximately 30% fewer calories.
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This is the aggregation of still and sparkling light grape wines, fortified wine and vermouth and non-grape wine. In terms of alcohol content, light wine usually falls into the 8-14% ABV bracket while fortified wine ranges from 14-23% ABV. Low and non-alcoholic wine is also included in the data (attributed to each sector as appropriate).See All of Our Definitions
This report originates from Passport, our Wine research and analysis database.
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