There is enormous economic opportunity for SA wine producers. As rising costs, changing consumer habits and unpredictable weather increase, producers are finding new ways to protect profitability and remain competitive.
South Africa's wine industry remains a significant contributor to the national economy, but shifting trends are forcing producers to rethink how they farm, manage costs and compete in local and international markets.
This is the view of Arno Abeln, Managing Director of Agrimark, part of JSE-listed KAL Group, who says that the business has seen an increase in wine producers adapting their farming practices to remain competitive.
“There is a noticeable change towards greater precision, with farmers investing in smarter irrigation, soil health and technologies that help them manage unpredictable weather conditions. We are also seeing growing demand for solutions that improve water efficiency, reduce production risks and lower the overall cost of farming,” says Abeln.
He says that these shifts are positive and demonstrate that wine producers are not resting on their laurels in responding to the opportunity set as well as current challenges.
The opportunity amidst changing trends
Abeln says that the 2026 wine harvest demonstrated the industry’s ability to produce excellent quality under difficult conditions. According to South Africa Wine and Vinpro, in 2026 an estimated 1,370 million tonnes of total wine-grapes were harvested, showing an 7.4% year-on-year growth compared with 2025. The wine quality indicators were excellent, particularly for premium wines.
“Changing consumption patterns are shifting the emphasis from volume to quality, creating significant opportunities for South African wine producers to strengthen their premium positioning. These include greater recognition of South Africa’s distinctive terroir, growing demand for sparkling and premium wines as well as lower-alcohol options, diversification into markets across Africa, Asia and North America, the expansion of wine tourism, and stronger sustainability credentials.”
Already SA’s sparkling wine category is receiving major attention. At this year’s Veritas Awards, held in October, KWV stole the show, winning the overall title for a record third consecutive year with its Laborie Cap Classique Blanc de Blancs 2020. Reflecting its role as an agricultural partner to producers, Agrimark has been a key sponsor of the Veritas showcase over the past two years.
“The awards demonstrate that quality remains one of the South African wine industry's greatest competitive advantages,” says Abeln.
At the same time, challenges remain: Climate volatility, ageing vineyards and the cost of renewal, water and energy constraints, rising labour and input costs, infrastructure and port inefficiencies and disease pressure.
“With softer global consumption in traditional markets, the strategic opportunity for the industry is to compete on value, quality and brand story-telling rather than volume alone,” says Abeln.
Preparing for a changing world
Abeln says that wine producers are increasingly looking for solutions that address several challenges at once, rather than simply purchasing individual products. These can include needing to manage unpredictable weather – including variable rainfall, heat spikes and water constraints – as well as increased disease pressure, for example.
“We are seeing farmers monitor soil moisture more closely, use targeted irrigation and invest in soil health and more climate-suitable cultivars. Technologies such as soil-moisture sensors, weather data and digital monitoring tools are also helping producers identify problems earlier and manage resources more efficiently.”
Going forward, he says, wine producers will need to manage vineyards more as data-led, climate-resilient production systems in the face of weather volatility. This means planning for more variable seasons; investing in water, energy and weather-resilient infrastructure; and using decision tools to act earlier.
“Fertiliser programmes will become more targeted and evidence-based, with greater use of soil and leaf analysis, fertigation, organic amendments and practices that improve nutrient-use efficiency. Producers will also need to accelerate vineyard renewal, test climate-suitable cultivars and rootstocks, reduce waste and carbon intensity,” says Abeln.
Producers should measure performance by block and renew vineyards selectively with the right site-cultivar combinations. Energy and logistics resilience should take priority, and where practical, collaborate on procurement and infrastructure.
When it comes to protecting the competitiveness of the product, he says that consistent quality together with sustainable cost is one of the most important factors that will determine future success.
Protecting the industry’s competitive advantage
“Commercially, producers need disciplined segmentation, stronger brands, traceability and a clear route-to-market strategy that balances domestic sales, packaged exports, quality bulk wine, tourism and direct-to-consumer channels. Credible environmental and social standards will also need to be met to protect market access.”
Agrimark supports more than 1000 wine-grape farmers and more than 100 wine cellars through an integrated offering spanning irrigation, crop protection, fertilisers, mechanisation, energy solutions, infrastructure, packaging and financial services aimed at helping producers improve market readiness. It does this by being a total-solutions partner rather than only an input supplier.
“A commercially viable wine industry benefits the entire agricultural value chain, and we all have a role to play in protecting its future,” concludes Abeln.