At a time when South Africa needs faster economic growth and more jobs, the wine industry occupies a unique position. Contributing R56.5 billion to the economy, it is both a globally competitive export sector and a cornerstone of the country’s tourism offering, earning foreign revenue while supporting employment across a broad value chain.
It’s impact extends far beyond the vineyards of the Western Cape, reaching restaurants, retailers, exporters, transport companies and manufacturers nationwide.
Speaking on Investec’s Wine in Focus vodcast series, Rico Basson, Executive Director of South Africa Wine, says, “The sector employs 270,000 people. They are not only based in the Western Cape where the winelands are. Wine is actually a national asset.”
A changing global market
Despite its importance to the local economy, South Africa’s wine industry is not immune to the structural shifts reshaping the global market. Consumption is declining in many traditional wine-drinking markets, with nine of the world’s ten largest wine markets recording lower volumes in 2025, according to the International Organisation of Vine and Wine (OIV).
Producers across Europe, Australia and the Americas are contending with weaker demand, changing consumer behaviour, rising production costs and growing competition from other alcoholic beverages.
The adjustment is already visible in the world’s vineyards. The OIV estimates that global vineyard surface area has contracted by 7.6% over the past decade, falling from 7.57 million hectares in 2014 to 7.0 million hectares in 2025 as producers adjust to softer demand and economic pressures.
In South Africa, the OIV reports that wine-grape vineyard area has declined from 119,000 hectares in 2020 to 109,000 hectares in 2025, while local consumption last year fell by 7.7%. However, in terms of volume, South Africa saw a 16.2% increase in production in 2025, bucking the global trend.
Basson argues that South Africa should judge its success by a different metric. “Success for the wine industry does not lie necessarily in the number of hectares, or the number of litres,” he says. “It is value growth.”
His argument reflects the direction of the global market. While consumers are drinking less wine overall, demand for distinctive, premium wines has proved more resilient. For producers able to compete on quality rather than price, success depends less on selling more wine than on creating more value from every bottle.
The shift from volume to value
In 2025, South Africa exported approximately 264 million litres of wine, generating around R9.8 billion in export revenue. While export volumes have declined from their historic highs, export revenues have proved more resilient, reflecting stronger pricing, premiumisation and growing recognition of South African wine.
One of the clearest examples of this shift is the growing importance of packaged wine. Although it accounted for 45% of South Africa’s export volumes in 2025, it generated almost 79% of export value.
Every bottle exported in its final form keeps more of the value chain within South Africa. Bottling, labelling, packaging, logistics and distribution all take place locally, supporting additional economic activity and creating more jobs than bulk exports.
The same principle extends beyond exports. Wine tourism creates value by encouraging visitors to stay in local accommodation, dine in restaurants, visit attractions and buy directly from producers, contributing an estimated R9.3 billion to the economy each year.
“Sixty-six percent of our tourists are locals. We’re just scratching the surface,” says Basson.
The premium attached to packaged wine also reflects something less tangible but equally valuable: trust. Consumers are increasingly willing to pay for the provenance, quality and reputation of South African wine, rather than simply buying it as a commodity.
Speaking on the sidelines of the Investec Trophy Wine Show, Peta Dixon, Head of Sponsorships at Investec, says: “International buyers are buying into our country’s brand, our quality and our story.”
Reputation, however, is not built through marketing alone. It is earned over decades through consistent quality, rigorous standards and the confidence of critics, buyers and consumers alike.
Why excellence matters
Creating more value from every bottle depends on one thing above all else: quality. As consumers become more selective, reputation has become one of South Africa’s most valuable competitive advantages.
Few people have had a better vantage point on that transformation than Michael Fridjhon, chair of the Investec Trophy Wine Show. Over the past 25 years, he has watched South African wine evolve from competing largely on price to earning international recognition for quality and innovation.
“We’ve gone from an industry which really was a bulk wine producer selling cheap bottles, into a country which is regarded by many of the most influential international critics as the most exciting wine industry in the world,” he says, speaking on the new season of Wine in Focus.
That evolution did not happen by accident.
It was built through decades of investment in quality, rigorous benchmarking and a willingness to compete with the world’s best.
“The reality is a competition sets standards for everybody,” says Fridjhon. “If you want to survive in a place where volumes are falling and criticism is unbelievably rigorous, you need to be listening.”
Those standards have helped shift international perceptions of South African wine from a low-cost producer to a premium wine destination.
For Itumeleng Merafe, Head of Private Bank South Africa at Investec, that growing reputation has become one of the country’s most valuable export assets.
“South African wines give us an opportunity to show the world what we are truly capable of,” he says. “It is important that South Africa is seen for our premium wines and not just as a volume player.”
The benefits extend well beyond exports. A reputation for excellence attracts investment, strengthens tourism and creates opportunities for a new generation of producers.
“What really excites me is finding these young winemakers from across the South African wine regions who are putting a bold and distinctively South African signature on the wines they’re making,” says Merafe.
As Basson puts it:
“We sell a million bottles of wine every day of the year, all over the world, and that is a million opportunities to have little ambassadors of South Africa out there.”
Every bottle exported carries more than wine. It carries South Africa’s reputation, telling a story of place, people and possibility that quietly shapes perceptions of the country one glass at a time.
