The latest export report published by industry body Wines of South Africa (WoSA) said total exports by value slumped 11 percent to 540 million U.S. dollars last year, though the depreciation of the country's currency meant export value in rand terms increased nearly 1 percent to 10 billion rand.
By comparison, South Africa's total volume of wined exports in 2022 stood at 368 million liters, which generated 9.9 billion rand in revenue.
WoSA attributed the lower numbers to excessive stock across the world's wine-producing countries, which had an adverse effect on prices on the whole, although the year 2023 saw production volumes decline 14 percent in South Africa.
"This can especially be seen at the lower- and entry-level segment of the wine markets where trading is particularly competitive and pricing within this commodity sector leading to a ripple effect throughout the value chain," it said.
Nonetheless, according to the report, South African wines are still impressing globally with continuous positive recognition from industry critics.
"The consistent positive ratings and accolades achieved by South African wines have most certainly solidified our positioning in international markets," WoSA CEO Siobhan Thompson was quoted by the report as saying.
"Quality remains our focus and the consistency that we have seen, along with viticultural improvements, embracing new technologies both in the vineyards and cellars, will allow for the continued upward trajectory in this regard," she said. "This is why buyers remain confident in their support of our wines."
According to the report, the most popular white wines exported from South Africa last year were Sauvignon Blanc, Chenin Blanc and Chardonnay, while the red wine bestsellers were Shiraz, Pinotage and Cabernet Sauvignon.
In terms of South Africa's top wine export markets, the three biggest countries by value were the United Kingdom, Germany and the Netherlands, making up a combined 45 percent of the total.
In addition, wine tourism in South Africa provided another welcome boost to growth, the report said, benefiting the small and medium-sized entities in particular.
However, it noted that South African wine producers continued to face several localized challenges, including infrastructure and equipment issues at the Port of Cape Town, which had a major impact on all products and commodities.
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