An ongoing decline in global wine consumption in recent years has taken its toll on the local wine export industry – which reported modest value growth in 2024, said Wines of South Africa (WoSA) CEO Siobhan Thompson.
She confirmed that year-on-year, total export sales, comprising packaged and bulk wines, had risen 4% in US$ value to $562 million on virtually unchanged volumes of 306 2m litres.
Packaged wine sales increased 4% in value to $430m, on 123.4m litres (+5%), while bulk sales grew 6% to $132m on lower volumes of 182.8m litres (-3%).
There has been an ongoing decline in global wine consumption in recent years, dropping some 10% between 2008 and 2023, according to the International Organisation of Vine and Wine. 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, WoSA figures reveal.
“As in other markets, these decreases were further exacerbated over the past year in an environment of mounting geopolitical tensions, with inflation continuing to erode the disposable income of wine lovers.
“The growth in South Africa’s packaged wines, critical to reputational enhancement, was very encouraging as evidenced in several key focus markets, such as the Netherlands, Canada and Japan, and in Africa, led by Tanzania, Zambia, Ghana and Mozambique,” she said.
“There is no denying that many South African producers have been knocked by the shrinking global wine market. 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. Progressive, adaptable producers creating fresh, vibrant, finessed wines, and those with a strong brand offering have also reported positively.”
Rico Basson, CEO of South Africa Wine, highlighted the resilience and resourcefulness of the export sector. “The ability to stay on course despite the ongoing headwinds that have strained the financial performance should not be underestimated. The South African wine sector has experienced two consecutive small harvests coupled with structural downward adjustments in both the national vineyard and total production. Still, we are planting wiser, enhancing our climate resilience and introducing more drought-resistant varieties.”
Given the likely continued austerity in consumer spending and the potential impact of any tariff wars that could play out this year, Thompson said it was difficult to project how exports would fare.
