South Africa’s wine export sector demonstrated remarkable resilience in 2024, achieving value growth despite a challenging global wine market. According to Siobhan Thompson, CEO of Wines of South Africa (WoSA), total export sales, including both packaged and bulk wines, increased by 4% in US$ value to $562 million, with volumes remaining steady at 306.2 million litres year-on-year.
Growth in Packaged and Bulk Wines
Packaged wine exports led the way with a 4% value increase, reaching $430 million, supported by a 5% rise in volume to 123.4 million litres. Bulk wine exports also experienced a 6% value growth, reaching $132 million, though volumes declined by 3% to 182.8 million litres.
Global Trends and Market Pressures
The global wine market has faced a steady decline in consumption, with a 10% drop between 2008 and 2023, according to the International Organisation of Vine and Wine (OIV). Key markets like the UK and the US, South Africa’s largest export destinations, have experienced declining per capita consumption, exacerbated by geopolitical tensions, inflation, and economic pressures.
Encouraging Trends in Key Markets
Despite these headwinds, South Africa’s packaged wines showed strong performance in focus markets such as the Netherlands, Canada, Japan, and African countries like Tanzania, Zambia, Ghana, and Mozambique. This growth underscores the increasing demand for premium, cultivar-led wines, including standout varieties like Chardonnay, Sauvignon Blanc, Chenin Blanc, Shiraz, Pinotage, and Merlot.
Thompson noted a shift in consumer preferences toward specific wine varieties over generic options, highlighting a growing discernment in demand. This trend has the potential to secure higher price points and elevate South Africa’s reputation as a premium wine producer.
The Industry’s Resilience and Innovation
Rico Basson, CEO of South Africa Wine, praised the industry’s adaptability in the face of challenges such as smaller harvests and structural adjustments in vineyard management. He emphasized the sector’s efforts to enhance climate resilience by planting drought-resistant varieties and maintaining an optimal stock-to-sales ratio as it approaches the 2025 harvest.
“We continue to be celebrated for our quality, and despite the challenges, there is much to be proud of,” Basson stated.
Global Opportunities and Tourism Boost
WoSA remains optimistic about the future, fueled by participation in international events such as ProWein and the highly anticipated CapeWine showcase from September 10–12. Thompson believes these platforms, combined with Cape Town’s recent accolades as the “World’s Best City” by Time Out and the “Best Food City” by Condé Nast Traveller, will boost interest in South African wines and the Cape Winelands.
Outlook for 2025
While Thompson acknowledged uncertainties such as consumer austerity and potential tariff wars, she expressed confidence in South Africa’s diverse and high-value offerings. “We are well-prepared with an appetizing range of wines that cater to all price points,” she concluded.
South Africa’s wine industry continues to thrive, proving its ability to adapt, innovate, and uphold its reputation for excellence in the face of global challenges.
