South African Wine Gains Traction in China as Tariffs Drop to Zero

Chinese importers are beginning to show renewed interest in South African wine, even before China’s newly implemented zero-tariff policy took effect.

“We have already seen interest from importers in China who have not previously worked with South African wines,” said Marcus Ford, Asia market manager for Wines of South Africa, when interviewed by Vino Joy News, adding that new partnerships are likely to emerge in the coming months.

The shift is beginning to show up in the data. In the first quarter, China’s imports of South African wine rose 90.52% in value year-on-year, the fastest growth among the country’s top ten wine suppliers. The increase comes ahead of a policy change that took effect on May 1, under which South African wine entered China duty-free for the first time.

For a category that has historically occupied a relatively small share of the Chinese market, the combination of improving trade sentiment and tariff relief is drawing fresh attention from importers and distributors.

Early Benefits Emerge

Under the new policy, import tariffs on South African wine, previously 14% for bottled wine and 20% for bulk, have been reduced to zero. The change forms part of a broader initiative by China to extend tariff-free treatment to a group of African countries, with the current arrangement set to run through April 2028.

The adjustment brings South Africa into line with other major duty-free wine exporters to China, including Chile, Australia, New Zealand and Georgia — a group that has benefited from preferential access in recent years.

Early signs suggest the policy is already being tested in the market. According to China News Service, on the morning of May 1, Tide Navigator Limited from China’s central Hunan province declared more than 6,000 bottles of South African wine at Changsha Huanghua Airport customs. The shipment benefited from approximately RMB 21,000 in tax savings under the new policy.

This marked the first African import consignment in Hunan province to enjoy the preferential tariff treatment, with the goods successfully cleared through the bonded zone.

Zhang Xin, chairman of the company, noted that the previous import tariff on South African wine stood at 14%. With tariffs now eliminated, the company expects annual costs to fall by around RMB 5 million (US$735,790), with retail prices likely to follow — ultimately benefiting consumers.

Importer Interest Builds

For many Chinese importers, the renewed focus on South Africa reflects both policy change and a broader search for new growth drivers.

Hong Boyong, CEO of Shanghai-based importer Pran Cellar, also struck an optimistic tone:
“I believe this will significantly boost South African wine sales in China. Countries that benefit from tariff exemptions — such as Georgia and Chile — have generally delivered strong volume performance.”

“South African wines already offer high quality. If supply can keep pace, more importers will begin to focus on the category. Given the relatively small import base, the growth potential is considerable,” he added.

Pran Cellar, originally known for its focus on Australian wine, pivoted after China’s anti-dumping measures disrupted the category. While some importers turned to Chile or spirits, the company chose to double down on South Africa which has since become a core pillar of its business.

Hong said the appeal was clear: “Many established wine regions are already saturated in China, with winery resources largely developed. In contrast, South Africa still has a significant number of wineries that have yet to enter the market, including many boutique producers.”

“Our strength lies in working with small, high-quality estates and South Africa offers exactly that, with strong quality and value,” he said.

He also pointed out that many entry-level wines from leading South African estates are produced using estate-grown grapes and the same winemaking approach as their flagship wines, a level of integrity that is increasingly difficult to find elsewhere.

Ford echoed this view: “We think that, across the board, we offer exceptional quality at all price points, and our very finest wines are available at prices that consistently outperform comparable international wines.”

Chenin Blanc Gains Momentum

South Africa’s high-value Chenin Blanc is emerging as a key beneficiary of China’s growing interest in white wine.

In recent years, major producer KWV has expanded into retail channels such as Sam’s Club, Pupu, Yonghui and instant retail platforms, helping Chenin Blanc gain visibility among mainstream consumers. This, in turn, is prompting retailers to broaden their South African portfolios.

For instance, Yonghui recently launched Bellingham Pear Tree Chenin Blanc at RMB 39.9. Pran Cellar is also set to introduce a Chenin Blanc product on the instant retail platform Jiuxiao’er in June.

“White wine is clearly a growth category, but New Zealand Sauvignon Blanc pricing has become increasingly transparent,” Hong said. “Many retailers are now looking for alternatives, and South African Chenin Blanc — with strong value across multiple price points — fits that need well.”

According to Wines of South Africa, around half of the country’s exports to China are now white wines, the majority of which is Chenin Blanc.

According to Wines of South Africa, around half of the country’s exports to China are now white wines, the majority of which is Chenin Blanc.

Rudi Delport, vice president of DP World (which co-operates KWV’s China business), highlighted recent success:  “Our biggest win recently has been KWV Classic Collection Chenin Blanc, which is performing very well at around RMB 68. At the same time, our flagship KWV Mentors Chenin Blanc is gaining traction through wine bars.”

Delport also noted growing interest in South African Moscato, while Pinotage continues to appeal to consumers seeking new styles.

Growth Starts From a Low Base

Despite the strong growth rates, the overall scale of South African wine imports remains relatively modest.

From January to March, China imported just over 612,000 litres of South African wine, worth approximately US$2.25 million, just 0.67% of the country’s total imports. While that represents a sharp increase, it is still small compared with volumes from leading exporters.

Delport said part of the recent growth may reflect delayed shipments being released ahead of the tariff change. He also cautioned that percentage increases can appear more pronounced due to the low base.

Ford, meanwhile, said second-quarter data will be more indicative. Some importers may have held stock in bonded warehouses awaiting the tariff change, meaning upcoming figures could better signal whether South African wine is entering a sustained growth cycle in China.

Despite the momentum, market education remains a critical hurdle.

“One of our key challenges is awareness. South Africa is producing world-class wines on a continent not traditionally recognised for fine wine production,” Ford said.

“Conversations about South African wine often begin with explaining how our unique climate, geography and winemaking heritage enable us to produce wines of such exceptional quality.”