Trade association Wines of South Africa has reported a single-digit lift in export sales from the country’s wine producers last year on a flat volumes performance.
The organisation said that shipments in the 12-month period were up 4% in value terms on 2023 at ZAR10.3bn (US$555.9m), with volumes dipping by 0.1%. While value sales of packaged product rose by 4% last year, the lift came on a +5% volumes showing, indicating challenges at the more expensive end of the price ladder.
South Africa’s bulk wine exports grew 6% in value terms as volumes declined by 3%.
Of the country’s ten largest export markets, the UK, which is far and away the biggest, registered a 6% decrease, joined by the US (-7%), Belgium (-3%) and Denmark (-14%) in the negative column. Growth came from the rest of the top ten, led by the Netherlands at +19% and the United Arab Emirates, which leapt by over a third, albeit from a smaller base.
Elsewhere, shipments to China, which sits outside the top ten but is widely considered a priority market across the wine industry for future growth, tumbled by 28% to ZAR248m. France, meanwhile, delivered a rise of 13% to ZAR274m.
“There is no denying that many South African producers have been knocked by the shrinking global wine market,” said WoSA CEO Siobhan Thompson. “Some wines at the higher end of the spectrum with offerings strategically tailored to their specific markets, backed by strong distribution and regular in-market visits, have flourished.
“We are well-prepared (for the future), with a compelling … array of offerings to bring to market.”
The organisation will host the Cape Wine trade show for the tenth time this year, in Cape Town from 10 to 12 September.
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