The South African wine industry is under significant financial pressure, with declining vineyard areas, an ageing vine profile, and rising production costs affecting its sustainability. Despite these challenges, the sector remains a key contributor to South Africa’s employment and economic growth, with strong multiplier effects. FTI Consulting has conducted two extensive studies commissioned by the South African Wine Industry Information and Systems (“SAWIS”).
These studies provide a detailed overview of the domestic wine industry and quantify its contribution to the South African economy. The studies cover the 2019 vintage and 2022 vintage, respectively. This note highlights the main findings of the studies and provides an updated overview of the wine industry to include data from the 2023 vintage. The data show that the South African wine industry is currently in a vulnerable position, with further challenges likely to intensify this strain and have a detrimental impact on the industry’s long-term growth.
This threatens not only a key national asset that enhances South Africa’s brand globally but also the industry’s substantial contributions to employment, economic growth and beyond. It is essential to consider the industry’s current position and broader economic role when evaluating potential policy adjustments. This note provides an overview of the industry’s current state, key economic contributions, and context for assessing potential policy adjustments.
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