South Africa’s wine exports drop 5% but higher bottle prices mitigated the loss
Last year, 20 million fewer gallons of wine departed South Africa than in 2021, but higher bottle prices mitigated the loss
South African wine exports fell 5% to 368.8 million liters last year. Despite the volume drop, the export value fell just 2.4%, showing premiumisation is taking hold.
The UK likes expensive South African wine. Last year, spurred by higher-priced bulk exports, it bought 8% more wine from South Africa than the year before.
Global wine exports were 62% bulk. However, bottled wine was the most valuable, accounting for 77% of the total, with global wine prices rising by 2.2% per liter.
China was struggling. Due to prolonged Covid lockdowns, South African wine exports to China fell 38% in volume and 26% in value.
Germany, South Africa’s second-largest export market, suffered a 9% drop in volume and a 17% drop in value, which Wines of South Africa attributes to declining visitation to the country.
Wines of South Africa also attributed the global export reduction to shipping issues at Cape Town’s port, exacerbated by severe weather that stopped ships from docking and a two-week port worker strike.
“Various issues out of our producers’ control delayed export recovery in 2022,” stated Wines of South Africa CEO Siobhan Thompson. Weather and Cape Town port strikes affected April and October. Shipping container and packaging material shortages added to the problems.”
If the African Continent Free Trade Agreement (AfCFTA) is implemented, South African winemakers see “huge opportunities” in selling to African countries.
Last year’s South African trade show planted seeds for a better 2023.
“CapeWine2022, our flagship industry exhibition, proved to be a big success and drew top buyers, influencers, and importers from across the globe, we expect to see the impact of this on exports heading into 2023,” said Thompson.
Prowein, where South African producers will have “a substantial presence for the first time in some years,” is the focus.
Thompson said: “Our manufacturers can’t wait to jump on aircraft and have face-to-face meetings with importers and buyers again. South African wine exports should do well in 2023.”
