South Africa’s wine industry sees a boost in export revenues despite flat volumes, with packaged wine sales driving growth and bulk exports also showing an increase. Meanwhile, global wine consumption continues to decline.
South Africa’s Wine Export Revenues Rise Amid Flat Volumes
In a positive sign for the South African wine industry, export revenues have increased in 2024 despite flat volumes. According to trade body Wines of South Africa (WoSA), the value of South Africa’s wine exports grew 3% to R10.3bn in rand, while in US dollars, export sales stood at $562m, up 4.3% against 2023.
Improved Packaged Wine Sales Drive Revenue Growth
One key factor contributing to this growth is an increase in packaged wine sales. The value of packaged wine exports grew by 4% to R430m in rand and by 3.9% to $430m in dollars. Volumes also increased, with a rise of 5.4% to 123.4m litres.
Bulk Exports Also See Growth
In addition to packaged wine sales, bulk exports also saw an increase in revenue. The revenue generated from bulk exports rose by 4.4% in rand to R2.4bn and by 5.7% in dollars to $132m. However, volume sales for bulk exports declined by 3.4% at 182.8m litres.
Global Wine Consumption Continues to Decline
It’s worth noting that global wine consumption has been declining over the years. According to figures from the International Organisation of Vine and Wine (OIV), global wine consumption had dropped by approximately 10% from 2008 to 2023.
South African Producers Adapt to Changing Market Conditions
WoSA CEO Siobhan Thompson acknowledged the challenges faced by South African producers in a shrinking global wine market. However, she noted that some wines at the higher end of the spectrum have flourished due to strategic marketing and distribution efforts.
Mixed Results for UK Wine Exports
Wine exports to the UK, South Africa’s largest market, were mixed. Total revenues declined by 6% in rand and 5% in dollars on the back of declining sales of packaged wine. However, bulk exports grew by 5% and 7% respectively.
Growth in Other Key Markets
In contrast, volumes to France, Sweden, and the Netherlands rose year-on-year. Volumes to Germany were flat, while shipments to Belgium and Canada fell 12%.
Sauvignon Blanc and Pinotage Lead Export Growth
Among white varietals, Sauvignon Blanc was the most exported from South Africa, with volumes increasing by 5% to 63.3m litres. The price per litre for these wines rose by 1% in rand and 3% in dollars.
Volumes of Pinotage also grew by 3% to 13.6m litres, with a corresponding rise in the price per litre for those wines.
