Overview of the South African Wine Industry

This document is an overview of the South African wine industry, published by FTI Consulting in February 2025. It outlines the current state of the industry, which is facing significant challenges including declining vineyard areas, an ageing vine profile, and rising production costs. The document details proposed changes to excise tax rates for alcoholic beverages, specifically wine, which may impact producers. It presents findings from two studies commissioned by the South African Wine Industry Information and Systems (SAWIS), highlighting the industry's economic contributions and vulnerabilities. The wine sector, despite its struggles, plays a crucial role in South Africa's economy, contributing R56.5 billion to the national GDP and supporting over 270,000 jobs. The report emphasizes the importance of understanding the industry's current position and economic role when considering policy adjustments, particularly regarding taxation. The analysis includes data on vineyard area, production trends, and profitability, illustrating the industry's precarious situation and the implications of potential policy changes.