South Africa’s wine industry is bouncing back with a premium push and bolder export plays, favored by near-perfect weather. As global rivals falter, local producers are raising their glass to a standout 2025 harvest.
SPECIAL REPORT | BIRD AGENCY |Favorable weather, better vineyard practices, and a strategic shift toward premium wine styles have delivered one of South Africa’s best harvests in years—1.244 million tons in 2025, up 11% from 2024.
Despite a long-term decline in vineyard area, projections from various sector analysts confirm the sector is on a rise and it remains globally competitive.
Charles Hopkins, a cellar master at De Grendel Wine Estate and Restaurant in Cape Town, describes the 2025 harvest as one of the best “after 38 years in the wine industry and 20 years at De Grendel.”
The 2025 harvest was shaped by weather conditions described by experts as “near-perfect.”
According to Johann Fourie, a winemaker and cellar master at Benguela Cove Lagoon Wine Estate, a premium estate in the Western Cape, “the cool ripening period not only resulted in even ripening but also exceptional pH and acidity levels in the juice and wines.”
“This ensured fresh, clean and intense flavors and a vibrant palette, alongside good color and aging potential of the red wines.”
The current upturn follows years of pressure from shrinking vineyard hectares, tough market conditions, and rising global competition.
South Africa typically ranks among the top ten global wine producers. In 2023, it was seventh, contributing about 3.9% of global output. More recent estimates place it eighth, with 8.8 million hectoliters produced.
Beyond South Africa, Morocco, Tunisia, Kenya, and Tanzania are serious wine producers, with unique terroirs and rising export profiles. Morocco leads the pack, producing 30 million bottles annually, according to Charlie’s Travels website, a South African travel agency.
While a continental frontrunner, 2025 data suggest South Africa is regaining its edge in the global wine market through improved quality and better-aligned export strategies.
A separate report by Vinpro, a South African wine industry consultancy firm, confirms in its 2025 technical harvest report that a high-quality crop is being witnessed across all major grape-growing regions.
Yields rebounded sharply in Breedekloof, with Pinotage and Chardonnay recovering from last year’s frost-hit crop. Cooler, drier conditions along the Cape South Coast boosted aroma and color intensity in Pinot Noir and Shiraz. Even Elgin, usually a high-risk zone for disease, saw clean, even ripening thanks to a milder summer.
As South Africa’s output climbs, key global rivals are facing setbacks—opening a window of opportunity for local exporters.
France, the world’s second-largest producer, saw output drop 23.5% in 2024 to 36.1 million hectoliters, the lowest since 1957, according to the International Organisation of Vine and Wine (OIV). Frost damage in early 2025 across Burgundy and Alsace threatens further disruption.
In Spain, vineyard contraction driven by sustained low profitability is accelerating, as noted in a recent analysis by Spanish wine outlet, Vinetur.
Climate volatility remains a key threat in Australia. Output fell 21% in 2024, and Wine Australia’s Climate Atlas points to ongoing drought risks that could further constrain yields this year.
Global volumes are also trending down. The OIV projects world production will stay near historic lows in 2025, at 225–235 million hectoliters—13% below the ten-year average.
Wandile Sihlobo, the Chief Economist of the Agricultural Business Chamber of South Africa (Agbiz), argues, “this promising wine grape harvest signifies the recovery of South Africa’s agriculture.”
“South African agricultural exports may reach a fresh high in 2025, surpassing the US$13.7 billion recorded in 2024.”
The sector’s present gains reflect sustained investment by wine producers in vineyard management, irrigation upgrades, and climate-smart practices.
Premium wines, for instance, now represent a larger share of output. The industry is moving away from high-volume, lower-margin bulk wines—a shift that supports profitability.
According to Vinpro, mid- and late-season red cultivars—especially Shiraz and Merlot—benefited from dry harvest conditions. These grapes showed concentrated flavors, balanced acidity, and strong color development, all key markers of premium wine quality.
In the Cape South Coast and Constantia, Sauvignon Blanc delivered fresh, varietally expressive wines, thanks to cool summer conditions and lower disease risk.
This week, the Tasting Room Association of South Africa (TRASA) was launched, aiming to raise service standards across wine estates through certification, staff training, and targeted marketing.
According to Lydia Coetzee, founder of TRASA, the initiative aligns with the sector’s premium strategy by turning wine tourism into a revenue driver and strengthening direct-to-consumer channels.
“Our wines can be excellent, but what turns a tourist into a lifelong customer is how they were made to feel… a welcoming, knowledgeable team is the key.”
While tasting rooms support brand value and customer loyalty, exports remain the industry’s main revenue engine.
Now, fresh tariff threats under a second Trump presidency are casting uncertainty over South Africa’s top wine export market—the United States. The new trade barriers have raised alarms across the industry.
In response, producers have strategically diversified their global footprint. By 2025, South African wines were reaching more than 120 international markets—up from just over 60 before 2019, according to South Africa Wine.
The European Union and the UK remain key destinations, but exporters are also pushing deeper into Asia, especially China, which accounts for 11% of global agricultural imports.
Still, access is uneven. South African wines face a 14% tariff in China, while Australian wines enjoy duty-free entry under a bilateral agreement—prompting renewed calls for more favorable trade deals.
“The focus on broadening export markets becomes even more urgent as we continue to see better quality and volumes in wine and other agricultural product output,” explained Sihlobo, the Chief Economist at Agbiz.
Yet even as harvest volumes and export sales climb, the land under vine continues to shrink. South Africa’s total vineyard footprint declined by 1,304 hectares in 2024, to just 86,544 hectares—the lowest in two decades, according to Vinpro.
“With a harvest like this, our preoccupation for the coming months will continue to be the export markets and logistics,” Sihlobo warned.
