SA wine pivots to value as demand slows and costs rise
Industry leaders, economists and market analysts used the summit to assess the opportunities and challenges facing the sector, from shifting drinking habits and global trade pressures to climate risks and evolving consumer expectations.
Industry restructuring around value
South Africa Wine CEO Rico Basson said the industry was navigating a period of significant change as consumers increasingly seek value while drinking less wine overall.
“The industry is not shrinking, it is restructuring around value,” he said.
While net farm revenue per hectare improved during 2025, Basson said declining consumption and oversupply continued to erode value.
He argued that future growth would depend on a more diversified and value-led strategy across international markets, supported by innovation, sustainability commitments and improved use of data.
“Heritage and innovation are not opposites. They are mutually reinforcing.”
Economic pressures remain
Nedbank chief economist Nicky Weimar said South Africa's economic recovery continued to face challenges from global uncertainty, inflationary pressures and supply disruptions.
While improvements in energy, rail and port infrastructure had strengthened confidence in the economy, she cautioned that rising fuel costs and inflation could affect consumer spending for years.
“Disposable income is the biggest driver of consumer spending, but when diesel prices rise, and inflation goes up, they can drive down consumer spending even up to two years later.”
Understanding tomorrow's wine consumer
Entrepreneur and author GG Alcock challenged the industry to rethink how it engages emerging consumers, particularly within South Africa's growing township middle class.
He argued that wine brands were failing to connect with a rapidly evolving consumer market shaped by informal business activity, premiumisation and social experiences.
“We’re doing a terrible job marketing wine in this space,” he said.
According to Alcock, many consumers are introduced to wine through personal recommendations rather than traditional marketing, creating opportunities for stronger grassroots engagement and community-driven advocacy.
His message to producers was simple:
“Go out among them, give them respect, for they are the future.”
Creating value in an age of abundance
Media strategist Priscilla Hennekam said technology and access to information had fundamentally changed how consumers evaluate products.
“In a scarcity world, value came from being hard to access, but in an abundance world, value comes from being hard to replace.”
She warned that traditional markers of quality and value were becoming less effective in an environment where consumers have more choice and easier access to alternatives.
According to Hennekam, wine producers need to focus on purpose, community and meaningful consumer connections to remain competitive.
Looking ahead
The summit also heard that South Africa's 2026 wine harvest delivered promising quality despite challenging weather conditions, while speakers highlighted the importance of maintaining international trade relationships and adapting to changing regulatory and market conditions.
Across discussions, a common theme emerged: future success will depend on the industry's ability to innovate, understand changing consumers and create value in an increasingly competitive global market.