By Kagiso Bonoko
South Africa wines enjoys domestic and international recognition because of quality, taste, and well-maintained reputation.
South Africa’s wines have over the years made a mark on world stages and secured their place by winning various awards year in and year out. Both red and white wines from the country consistently receive international recognition at the most prestigious wine competitions internationally. The recent 2024 fine wine awards, sponsored by American Express saw Hout Bay Vineyards Klasiek 2020 and Spier Frans K. Smit White 2018 being awarded the highest-ranking wine in their category.
The South African wine industry has gone from strength to strength, with exports reaching 306.5 million litres in 2023. Currently, more than 2,350 farmers cultivate some 87,848 hectares of land under vines. Some 270,363 people are employed both directly and indirectly in the wine industry. The annual harvest in 2022 amounted to 1 375 937 tons (1 068.3 million litres), of which 80.9% was used for wine. In 2023, the annual harvest amounted to 1 182 519 tons (933.8 million litres), of which 83.9% was used for wine. This is according to statistics from Wines of South Africa (WOSA).
The country has six wine regions, predominantly situated in the Western Cape province, and is home to some of the world’s most breathtaking wine farms. Paarl is the largest town in the Cape Winelands and has almost 14,300 hectares dedicated to wine grape vineyards. It produced 934 million litres of wine in 2023, with 306 million exported, generating approximately R10 billion. Historically, the country’s wine industry has advanced ever since its first grapes were harvested in the 1600s.
As far as international wine production is concerned, France leads with 20.2% of the total, Italy second with 16.1%, Spain is third with 11.9%, and South Africa seventh with 3.9% (2023 figures). South Africa leads the world in environmental sustainability and regulated production integrity. From the 2010 vintage, a new seal for South African wines was introduced, which traces the wine from vine to bottle. The seal is a world first and certifies a wine’s integrity as well as sustainability.
According to a study commissioned by the SA Wine Industry Information & Systems (SAWIS) and published in January 2022, it shows how the wine industry contributes positively to the country’s employment, both directly and indirectly. This includes farm labourers, those involved in packaging, retailing, and wine tourism. The study also concluded that of the R56.5 billion contributed by the wine industry to the national GDP, about R31 billion would remain in the Western Cape to the benefit of its residents.
Though still ranking seventh in overall volume production of wine and producing 3.9% of the world’s wine (2023), SA’s wine exports continue to improve post the Covid-19 pandemic. Amid all the challenges posed by the global pandemic, wine tourism has proven to be a resilient lifeline for the industry, elevating its economic significance and showcasing its adaptability. The growth from 14.7% in 2019 of total winery turnover attributed to wine tourism to 17.3% in 2022 underscores its crucial role as a revenue source. In 2022, wine tourism contributed R9.3bn to the South African economy, surpassing pre-Covid-19 levels and significantly outperforming the 2019 contribution of R7.2bn.