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Wine industry shifting to value growth

11 Sep 2024 - by -
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South Africa’s wine industry is continuing to go from strength to strength despite ongoing challenges, highlighting the sector’s resilience.The 2024 grape harvest yielded 1 099 051 tonnes from 87 848 hectares, a 7% decrease from 2023, according to the latest harvest estimate by industry body SA Wine Industry Information and Systems (Sawis). This, combined with strong market demand, led to the industry’s wine stock levels reaching equilibrium. While the lower volumes imply considerable cost pressure for wine producers, they also showcase the sector's commitment to ensuring value growth across markets.“The 2023/2024 season may have presented its share of obstacles, but it has also showcased the resilience and determination of the South African wine industry,” said South Africa Wine CEO Rico Basson. “This industry stands resilient. Despite f luctuations in harvest yields and vineyard surface areas, we are primed and prepared to supply the world with exceptional quality and distinctive wines.”The industry has faced a diverse and demanding range of climatic events, from frost and heavy winter rainfall to f loods and wind. Despite this, the 2024 wine harvest – including juice and concentrate for non-alcoholic purposes, wine for brandy, and wine for distilling – is estimated to amount to 857.1 million litres, at a recovery of 780 litres per tonne of grapes.South Africa is the world's seventh-largest wine producer, producing approximately 4% of the world’s wine. The wine industry contributes more than R56.5 billion to the country’s GDP and employs 270 364 people across the value chain, of which 85 962 work on farms and cellars.Basson said the wine industry remained on its strategic repositioning path. “We are shifting our focus to value growth,” he said, indicating that the goal was not only to grow the wine sector but also to deliver sustainability, while maintaining the high-quality product that local and international markets have come to expect.

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