SA wine exports show resilience amid global challenges

Source: distel2610 via Pixabay

The export performance of South African wine in 2024 saw total export sales reach $562m, reflecting a 4% increase, with volumes at 306.2 million litres.

Packaged wines played a major role in this growth, with their value rising by 4% to $430m, supported by a 5% increase in volume to 123.4 million litres. In contrast, bulk wines grew in value by 6% to $132m, although volume declined by 3% to 182.8 million litres.

A standout highlight was the success of premium cultivars, with bulk exports of varieties such as Chardonnay, Sauvignon Blanc, Chenin Blanc, Shiraz, Pinotage, and Merlot experiencing significant growth.

This trend signals a growing global interest in the quality and diversity of South African wines.

Challenges facing the global wine market

According to the International Organisation of Vine and Wine (OIV), global wine consumption has dropped by 10% between 2008 and 2023, with significant declines in key markets like the UK and the US. Additionally, rising geopolitical tensions and inflation have put pressure on consumer spending.

Despite these challenges, South African producers with strong branding, market-specific offerings, and fresh, vibrant wines have flourished. The increased demand for cultivar-specific wines over generic categories highlights the growing consumer preference for premium quality.

"We are pleased that growth in packaged wine exports, vital for enhancing South Africa’s reputation, was particularly evident in markets like the Netherlands, Canada, Japan, and African markets, including Tanzania, Zambia, Ghana, and Mozambique," says Rico Basson, CEO of South Africa Wine.

Innovative strategies drive industry resilience

"The resilience of South African wine producers in an era of declining global consumption also highlights their adaptability and innovation. Through smarter planting strategies that include drought-resistant varieties, enhanced climate resilience, and maintaining an optimal stock-to-sales ratio, we firmly believe the industry is well-positioned as it approaches the 2025 harvest.

"We acknowledge the challenging global economic landscape, which is characterised by potential tariff wars and constrained consumer spending. But, despite these obstacles, we should focus on strategically positioning our wine export sector to capitalise on market opportunities," adds Basson.

"By leveraging Cape Town’s international accolades, including recognition as the World's Best City by Time Out and the best food city by Condé Nast Traveller, we must continue to strengthen the Cape Winelands’ global appeal together.

"This industry has truly demonstrated its remarkable adaptability, navigating complex market conditions with determination and successfully maintaining its competitive edge on the international wine stage," concludes Basson.