The economy of Villafranca de los Barros is largely driven by agriculture, particularly wine production. The city’s vineyards are among the most renowned in Extremadura, and the local wine industry plays a significant role in both the economy and cultural life of the town. Many wineries offer tours and tastings, which attract tourists from around the world and provide opportunities for events and corporate functions.
Olive oil production is another important industry, with local olive groves producing high-quality oils that are exported across Spain and internationally. In addition to agriculture, the city has a growing tourism sector, bolstered by its cultural festivals, historical sites, and natural beauty. Artisanal crafts, particularly pottery and traditional textiles, also contribute to the local economy, with many small businesses showcasing their products in local markets.