The tenth edition of Cape Wine opened its doors in Cape Town yesterday (10 September) with an optimistic yet clear-eyed assessment of where the South African wine industry stands following a decade of hard-hitting challenges, including a three-year drought, pandemic disruptions and successive small harvests that have put pressure on supply.
Speaking to an audience of more than 400 producers, global buyers, trade and media, Wines of South Africa (WoSA) CEO Siobhan Thompson set the tone with an opening address which highlighted the 10th edition of the southern hemisphere’s leading wine trade exhibition.
She said: “This year marks a significant milestone, 25 years since our inception in 2000. Under the theme Our Warmest Welcome, we invite you to experience the very heart of the South African industry, where world-class wines meet hospitality, diversity and innovation.”
The show also coincides with the centenary of Pinotage, the country’s signature variety.
“Pinotage is more than a grape,” Thompson said. “It’s a symbol of South Africa’s ingenuity and identity. Today, Pinotage stands proud amongst the great wines of the world, and this centenary is a tribute to its legacy, its pioneers and the exciting future it holds.”
Resilience under pressure
Minister of Agriculture John Steenhuisen used his address to paint a candid picture of an industry forged in adversity.
“In the last decade, our wine industry has been tested like no other,” Steenhuisen told a keen, first-day assembly. “The three-year drought from 2015 to 2018 tightened its grip on all of our producers. Then came Covid-19 and the hard lockdowns that shuttered tasting rooms, froze tourism and restricted local trade. Load-shedding has complicated everything from irrigation and cellar management to cold chains and the hospitality trade. Yet, here we are today, leaner, smarter, more determined, and I would argue, more united than ever before.”
Despite those headwinds, South Africa’s wine value chain still supported over 270,000 jobs in 2022, including almost 86,000 in farms and cellars, and contributed roughly R56 billion to GDP – nearly 1% of the national economy.
“That is resilience you can measure,” Steenhuisen said.
Global footprint and potential growth
South Africa now accounts for 3.9% of global wine production and 3.6% of global wine exports, ranking sixth in the world by export value. In 2024, the industry sold R35.7 billion worth of wine, with around 40% exported. Wine tourism remains a major economic driver, contributing R9.3 billion to GDP and more than 40,00 jobs.
Speaking to Drinks Retailing, Thompson urged the global wine trade to recognise South Africa’s evolution from bulk exporter to world-class fine wine producer, while continuing to address deep-rooted social and economic challenges.
Bulk wine continues to account for around 55-60% of export volume, however the value to volume ratio is improving. Meanwhile, export volumes have stabilised at around 300-320 million litres per year.
“Six or seven years ago, 25% of our exports went to the UK in volume but only equated to 18% of the value. Now that value share has caught up. It means our mix has changed and we’re selling better quality wine at a better price.”
Thompson also reflected on a turbulent decade for the industry, from the severe drought of 2015-2018 that slashed yields and pushed up prices, to the five-week Covid export ban that left cellars full and farmers struggling.
“We probably had the worst export year of our lives,” she said. “But there’s a silver lining. We’ve seen good growth in financial sustainability – selling better quality wine at a better price – and that helps us pay decent wages and invest in vineyards.”
Transformation and inclusion
Both Thompson and Steenhuisen underscored the importance of social transformation. The industry now counts 107 black-owned wine brands and 81 black-owned farms in its ecosystem, with three new black-owned cellars in development. One is already under construction. Direct industry investment of R14 million in 2024 helped unlock a further R19 million in donor funding to support inclusive growth projects.
“Transformation is not just a tagline for this industry,” Steenhuisen said. “The journey is real, measurable, authentic and accelerating… These are the invisible trellises that hold our vineyard of talent upright.”
Thompson also pointed to ethical initiatives such as WIETA (the wine industry’s ethical trade programme), the Old Vine Project and IPW (Integrated Production of Wine), which set global benchmarks for sustainable and responsible production.
“Sustainability is no longer a goal – it’s a commitment,” she said.
Innovation and market access
Looking ahead, Steenhuisen challenged producers and policymakers to double down on quality and distinctiveness, while scaling sustainability efforts and accelerating market access.
“The world is a very crowded place, and authenticity cuts through. We must lean into origin, terroir and story, and let the Cape speak in the glass. Do that, and the numbers will follow – more visitors, more exports, more investment and more jobs,” he said.
Steenhuisen also confirmed that the government is working with industry to tackle tariff headwinds in growth markets such as Japan and to expand the Wine Arc incubator, which provides black-owned brands with a route to market.
As buyers, importers and press from more than 40 countries descend on Cape Town this week, Thompson sees Cape Wine as both a commercial showcase and a cultural moment.
“Cape Wine feels like Christmas Day and seeing all your family,” she said. “People are happy, positive and the wines are amazing. It’s about finding solid ground for the industry and competing at world-class levels.”
