In line with industry projections made in the Bureau for Food and Agricultural Policy’s (BFAP’s) ‘Baseline 2025’ report, industry body South Africa Wine has identified strategic priorities to ensure the wine industry is well-positioned for the future.

The BFAP Baseline report, which was published last week and outlines the organisation’s outlook for agriculture from 2025 to 2034, states that wine production volumes will likely stabilise below historical levels over the period, owing to a shift in focus from volume to value.

South Africa Wine CEO Rico Basson concurs with BFAP that there is a clear path for growth as the industry focuses on value over volume, market diversification, climate adaptation and building an inclusive and skilled workforce.

“[The wine industry] has weathered years of climate pressure, market shifts, Covid-19 alcohol bans and logistical challenges, yet producers have continued to innovate and deliver world-class quality.

“There have also been significant global challenges owing to tariffs, climate factors and lower production and consumption levels,” Basson states, explaining that global wine consumption is shifting toward quality; bulk wine is gaining structural momentum in international trade and traditional markets such as Europe are giving way to growing opportunities sin Africa, Asia and North America.

Domestically, premium and ultra-premium wine segments are growing, alongside sparkling wine.

Basson says the industry must be strategic, collaborative and proactive to ensure sustainability and prosperity.

Some of South Africa Wine’s priorities for the sector include urgent vineyard renewal, climate adaptation, premiumisation, market diversification, value chain efficiency, domestic market strength, greater inclusivity, trade positioning and sustainable growth.

Basson says South Africa’s vineyard area has declined for 17 consecutive years, delivering below-average returns on investment. To this end, he calls for renewed vineyards, strengthened value chains and more climate resilience to remain competitive.

Basson urges wine grape producers to prioritise replanting and smart cultivar selection to halt vineyard decline, safeguard quality and yields and capitalise on rising bulk wine and grape prices.

Bulk wine prices rose by more than 8% in 2024, while the premium and ultra-premium categories in the local market are poised to grow by more than 25% over the next decade. Basson believes certain markets in Africa will double their demand for wine.

“With improved returns, the vineyard area is projected to stabilise at 84 000 ha as replacements take effect,” Basson states, adding that future success will rely on a conducive policy environment whereby investor confidence is boosted, red tape is reduced, excise taxes are evidence-based and illicit trade is addressed.

On an industrywide level Basson recommends continued investment in climate-resilient varieties, advanced water management, adaptive farming practices and decision-making tools that provide foresight.

On the premiumisation topic, Basson urges the industry to continue targeting export value repositioning and capitalise on the strong global demand for quality varietal bulk and wine packaged at destination to increase margins.

He adds that producers must reduce their reliance on the European market by actively expanding in Africa, Asia and North America, in partnership with the departments of Trade, Industry and Competition, and Agriculture, to negotiate a more beneficial tariff and non-tariff dispensation.

Moreover, Basson says South Africa Wine is helping to support the forward and backward integration by producers reintegrating beyond the farm gate, to capture higher margins and brands that want secure access to raw material.

The organisation is also making strides in people development and inclusive growth, to ensure that skills and opportunities are shared across the industry to create a more equitable sector.

Ultimately, South Africa Wine is strengthening South Africa’s global wine brand through coordinated marketing, advocacy and storytelling and urges producers to focus on profitability through quality, efficiency and targeted markets, rather than chasing volumes.