Elgin has more recently developed a large and thriving wine industry, and wines from the region have won several international awards. It is South Africa's coolest climate wine growing region. Other key geographic factors include its proximity to the Atlantic Ocean, the prevailing wind directions, and its altitude. The cool temperatures and plentiful winter rainfall mean that the Elgin basin has a set of conditions for wine growing which are markedly different to those in surrounding areas. Of the many varietals grown in the region, special attention has been paid to Sauvignon Blanc and Pinot Noir.
The region is historically significant for South Africa's wine history also because it had one of the earliest movements towards Black ownership of vineyards and wineries. The Elgin winery Thandi was in fact the country's second post-Apartheid winery with significant black involvement (after New Beginnings in Paarl).
