The economy of Alcázar de San Juan is largely driven by agriculture, with vineyards, olive groves, and cereal production playing a central role. The city is part of the world-famous La Mancha wine region, and many local vineyards produce high-quality wines that are exported globally. Olive oil production is another significant industry, with local producers offering some of the best olive oils in Spain.
Tourism has become an increasingly important sector, particularly as more visitors are drawn to the cultural and historical heritage linked to Don Quixote. The windmill routes and historic monuments attract many cultural tourists, while the nearby natural parks and rural tourism opportunities are drawing ecotourists as well.
Additionally, Alcázar de San Juan has a growing service sector, particularly in hospitality, with numerous hotels, restaurants, and event venues catering to both tourists and business travelers. Local crafts, particularly ceramics and textiles, also contribute to the city’s economy.