Last year marked a challenging one for the wine industry as volumes declined by 17%, resulting in total export volumes of 306-million litres.

However, the value of exports increased to $540-million, or R10-billion, despite the volume decline.

This compares with the 368-milion litres exported in 2022, at a value of R9.9-billion.

Industry body Wines of South Africa (WoSA) finds in its ‘Export Report’ for 2023 that excessive stocks across the world’s wine-producing countries had an adverse effect on pricing, especially in the lower- and entry-level segment of the wine market.

WoSA explains that trading is particularly competitive in the entry-level segment of the market, which has a ripple effect throughout the value chain.

South African wines are nonetheless impressing globally, with continuous positive recognition from critics such as Tim Atkin and Anthony Mueller.

“It is this reputation for top quality wines that seems to be setting South Africa’s wines apart from many of its counterparts and fuelling a positive premium growth trajectory,” WoSA CEO Siobhan Thompson states.

She adds that positive accolades achieved by South African wines have most certainly solidified the country’s positioning in international markets. Thompson believes local producers are known for making wines that are unique and representative of the Rainbow Nation.

WoSA says the industry remains focused on viticultural improvements and embracing new technologies in vineyards and cellars, which will allow for continued growth and buyer confidence.

The most popular white wines exported from South Africa are sauvignon blanc, chenin blanc and chardonnay, while the red wine bestsellers are shiraz, pinotage and cabernet sauvignon.

Thompson says producers continue to face several localised challenges, including infrastructure issues at the Port of Cape Town, which has had a major impact on all products and commodities.

“Order fulfilment is key in the international wine business and we cannot allow delays owing to below-standard logistical performance to tarnish our reputation as a reliable supplier of quality wine,” adds newly formed industry body South Africa Wine stakeholder engagement manager Christo Conradie.  

Both organisations are working with the port authorities to find ways of supporting producers in the short term, but Conradie believes a long-term strategy will need to be implemented to negate and correct these challenges.

WoSA will soon release a wine tourism impact study, which will show that wine tourism has grown well and benefits small and medium-sized entities.