Photo: Glenneis Kriel
This was according to Yvette van der Merwe, president of the International Organisation of Vine and Wine (OIV) and executive manager of the SA Wine Industry Information and Systems (SAWIS), who spoke at the 44th South African Society of Enology & Viticulture Conference, currently under way in Stellenbosch, Western Cape.
Van der Merwe referred to an OIV report titled ‘The Global Trade in Wine: Role and Relevance of Re-exportation Hubs’, released in October, which provides the first comprehensive assessment of global wine re-exports.
Value of wine re-exports
According to the analysis, international wine trade accounts for 47% of global consumption, with re-exported wine representing about 13% of total exports between 2018 and 2023, equivalent to around 14 million hectolitres (Mhl) per year.
Re-exports are valued at €4,55 billion (around R91 billion), or 13,5% of global export earnings, with the average price of re-exported wine matching the global average of €3,26/ℓ (R65/ℓ), underscoring the central role of countries that redistribute wine through commercial hubs.
The report identifies several types of re-export centres, including wine-producing countries like Australia and Germany; trading nations such as the UK, Belgium, and the Netherlands; and non-producing hubs led by Singapore, which re-exports large volumes of champagne to Japan, and the Hong Kong Special Administrative Region (SAR), which serves as a base for re-exports to China and other Asian markets.
Whereas Singapore and Hong Kong SAR represent the highest value among the non-producing hubs, Thailand re-exports the highest volumes.
The report recognises Ghana, Namibia, and Angola for their redistribution role in Africa, and Latvia and Lithuania for their role in supplying wine to Russia.
UK and Germany: key export hubs
Van der Merwe highlighted the UK and Germany as key examples. The UK, despite limited domestic production, is ranked the eleventh-largest wine exporter by value, largely thanks to its re-export activities.
The country imports more than 1,3 billion litres of wine annually to meet domestic demand, produces about eight million litres, and exports 65,5 million litres.
Its average export price of €9,58/ℓ (R191/ℓ), which is nearly triple the global average, pushes total re-export revenue to about €550,8 million (R11 billion).
Imports primarily come from Italy, Australia, and France, and are dominated by non-sparkling wines, while high-value sparkling wines represent a small share of volume but nearly one-quarter of import value.
The UK’s markets are divided into high-value, low-volume destinations such as Hong Kong SAR and Singapore, which represent 3,6% of export volume but nearly half of export value; and high-volume, low-value markets like Ireland and the Netherlands.
Germany, meanwhile, is ranked as the eighth-largest wine exporter globally by value and the seventh by volume, as of 2023.
The country imports an average of 14,4 Mhl annually and consumes more than 19 Mhl. It produces 8,9 Mhl per year and exports 3,6 Mhl, of which 64% of total shipments and 16% of total imports – equalling 2,3 Mhl – are re-exported.
Van der Merwe attributed Germany’s strong re-export role to its efficient bottling infrastructure, extensive commercial networks, and reliance on imported base wine for sparkling wine production.
The country primarily imports non-sparkling wines, with 37% arriving in containers under 2ℓ and 56% in bulk. Sparkling wine accounts for a smaller share of import volume but represents 17% of total import value due to higher prices. By comparison, non-sparkling bottled wines account for 91% of Germany’s wine exports by volume and 88% by value.
Export volumes have declined since peaking in 2011, but export value has risen due to higher prices, with the average reaching just over €3/ℓ (R60/ℓ) in 2023. Top suppliers are Italy, Spain, and France, with key export markets including the Netherlands, the UK, and Belgium.
Germany’s top 10 export markets represent 67% of total export value, primarily comprising nearby and Nordic countries, while outside the top 10, average export prices range from €1,65/ℓ (R33/ℓ) to €5,61/ℓ (R112/ℓ).
How re-export hubs are shaping global wine trade
Van der Merwe said the rise of re-export hubs reflects broader structural shifts in the global wine trade, with logistics, packaging, and commercial reach playing an increasingly important role in how wine moves across borders.
“Key hubs leverage strong logistics, regulatory support, and financial infrastructure to facilitate trade between producers and end markets. The presence of a skilled workforce and favourable business conditions further enhance their attractiveness.
“Ultimately, their success depends on physical capabilities, strategic partnerships, and market adaptability,” she explained.
She added that the growth of re-export hubs also highlights opportunities for wine exporters to add value, as well as the importance of understanding target markets.
“We are seeing a long-term convergence in wine-drinking habits, with traditional wine-consuming countries moderating their intake while new markets are expanding. While quality, authenticity, and heritage remain vital strengths, they are not enough on their own. Renewed growth depends on recognising the needs and motivations of new audiences and engaging with them on their terms,” Van der Merwe concluded.
