South African wine is becoming more popular in Japan, where its market share has been growing faster than the average growth of wine as a category in that country.
Marcus Ford, Asia Market Manager of Wines of South Africa (WoSA), the industry body promoting the export of SA wines, explains that Japan is a relatively mature wine market. The country has an aging population, and consumers have a myriad of drinks choices.
"Wine as a category has shown very slow growth of around 1% over the past 10 years, but it is still a billion-dollar category in Japan," says Ford.
South African wine consumption in Japan has been growing faster than the country's wine market as a whole, at around 3% over the past 10 years.
"While SA's market share is small, it is growing. Many of our key competitor countries have free trade agreements [with Japan], but at this stage, South Africa does not. So, we are succeeding despite [not having a free trade agreement being] a very obvious barrier to growth," says Ford.
Asked what Japanese consumers like about SA wine, he says there are several key factors. First and foremost, the Japanese consumer is incredibly discerning regarding food and beverages choices.
"The quality and value of SA's wine offer shine through at all price points," says Ford.
Secondly, South Africa's long history and tradition of wine production, going back over 360 years, accentuates the authenticity of the wines it offers.
"Last but not least, I would point to travel and tourism which impact people who visit South Africa. SA's tourism and wine offer is unforgettable. This has a huge influence on perceptions," says Ford.
Most wine in Japan is consumed by people aged over 50. Japanese consumers prefer white and sparkling wines more than any other country in Asia. That is why SA's Chenin Blanc and Cap Classique wines are a natural fit.
"The crisp, fresh styles pair well with lighter styles of Japanese cuisine and have natural partners in various forms of Sashimi and Sushi," says Ford.
Currently, Japan ranks about 15th in terms of the value of SA wine exports. However, in terms of value per litre, it is in the top 2 or 3 of SA's markets worldwide, making it "a beacon for premium exporters", according to Ford.
"Achieving growth in our exports and gains in our market share in Japan is extremely important as premium and branded wines are so crucial to the sustainability of our industry at home," he explains.
Yoshiko Takahashi, a specialist in wine communication and a project manager of WoSA in Japan, agrees that there is an increasing interest in South African wines in that country. Currently, SA wines are only about 1% of imported wine to Japan, leaving room for growth.
"Since 2015, I have seen several exciting wines from South Africa in the Japanese wine trade, particularly from small and new producers such as Alheit and Crystallum. Those wines from a new wave of producers have attracted wine trade and fine wine consumers in Japan to discover more about South African wines," says Takahashi.
She says Japanese consumers are attracted to the quality and value for money, "story and personality" of the producer, and the diversity in the styles of SA wines.
She says having a free trade agreement is critical when supermarket ranges of wine or even bulk wine need to compete with other countries such as Chile and Spain, for example.