South African wine exports hampered by contracting global market
South Africa’s wine export sector experienced a steadily contracting global wine market last year, with modest value growth achieved, nonprofit Wines of South Africa (WoSA) CEO Siobhan Thompson says.
Year-on-year, total export sales, comprising packaged and bulk wines, rose 4% in dollar terms to $562-million on relatively unchanged volumes of 306.2-million litres.
Packaged wine sales increased 4% in value to $430-million, on 123.4-million litres (+5%), while bulk sales grew 6% to $132-million on lower volumes of 182.8-million litres (-3%).
There has been an ongoing decline in global wine consumption in recent years, having decreased by about 10% between 2008 and 2023, according to the International Organisation of Vine and Wine (OIV).
Per capita consumption in the UK, South Africa’s biggest market, peaked in 2009.
In the US, the world’s biggest wine market by value, per capita consumption has declined since 2017.
These decreases were further exacerbated over the past year in an environment of mounting geopolitical tensions, with inflation continuing to erode disposable income, WoSA avers.
There was growth in South Africa’s packaged wines in several key focus markets. In Africa, this was led by Tanzania, Zambia, Ghana and Mozambique and, further abroad, by the Netherlands, Canada and Japan.
Cultivar-led growth in the bulk market came from Chardonnay, Sauvignon Blanc, Chenin Blanc, Shiraz, Pinotage and Merlot.
Historically, the ‘dry white’ or ‘dry red’ categories had been the biggest contributors to bulk sales, WoSA says.
Industry body South Africa Wine CEO Rico Basson says the industry has an optimal stock-to-sales ratio going into the 2025 harvest.
“This bodes well for both the domestic (60% of volume) and export (40% of volume) markets,” he posits.
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