South African wine exports are declining

Wines of South Africa (WOSA) predicts that exports will drop by 5% in 2022 compared to the previous year. This is because costs have gone up and transportation is harder.

In its 2022 Export Report, the trade association said that 368.8 million litres of wine were exported in 2022, around 20 million litres fewer than in 2021. However, export value fell by only 2.4% during the same period.

The chief executive officer of WOSA, Siobhan Thompson, stated, “The recovery of exports was hindered in 2022 by a number of external circumstances.” During the months of April and October, weather conditions and strike action at the port of Cape Town had a direct influence on exports. In addition, the lack of shipping containers and packing materials posed additional obstacles.”

Thompson stated that 2022 would yield favorable results, such as the success of Cape Wine Week. In addition, the WOSA report indicated an increase in bulk wine exports, which accounted for 62% of overall export volumes.

In terms of exports by country, the United Kingdom remained South Africa’s largest wine export market in 2022, with a five percent increase in volume over 2021. Germany, the second-largest export market, experienced a 9% fall in volume, which the report attributed to inflation and the “growing habit of consuming local wines to support the local producers.”

Aside from China, growth has slowed elsewhere, most likely because to “severe lockdown measures enforced by the Chinese government,” which has resulted to a fall in the population’s overall wine consumption.

In 2023, WOSA’s Thompson has great expectations.

“For the first time in recent years, we will have a significant presence at ProWein Germany in March 2023, at booths A70 through C80 in Hall 14.” Our producers cannot wait to board airlines and connect with importers and buyers face-to-face once more. We anticipate that 2023 will be a banner year for South African wine exports.”