India’s Growing Wine Market: Handbook for Global Players

India's wine market is quietly evolving into a significant growth opportunity, driven by a rising middle class, increase in disposable incomes and a growing interest in global cuisine. As traditional markets in Europe and North America mature, India offers international wine producers a promising new frontier for long-term expansion and brand positioning.

Market Overview

• Valued at US$ 195.3 million in 2023, the Indian wine market is projected to reach US$ 802.9 million by 2032, growing at an impressive CAGR of 17%.
• Wine accounts for less than 1% of India's alcoholic beverage market. Per capita consumption is under 50 ml, far below the global average of 5.5 litres, highlighting significant room for expansion.
• Domestic wines dominate, with 67–70% share, led by Sula Vineyards (~60%), Fratelli Wines (~25–30%), and Grover Zampa (~7%). 
• Imported wines (~33%) mainly from Spain, France, Australia, Italy, and Chile are gaining particularly in urban cities like Mumbai, Delhi, Bengaluru, Delhi, Pune, Chandigarh, and Hyderabad (~70% of wine sales) 
  
  • • Red Wine (49%): Leads the market, driven by rich flavors and perceived health benefits.
    • Fortified Wine (35%): Popular for its higher alcohol content and longer shelf life, appealing to consumers seeking stronger options.
    • White Wine (13%): Favoured for its light, fruity character, attracting a niche yet growing segment.
    • Sparkling Wine (3%): Mostly consumed during celebrations, prized for its festive and effervescent appeal. (e.g. Moet & Chandon Brut Imperial, Dom Pérignon) 

Key Drivers of Growth:

• Rising disposable incomes and a growing middle class are increasing demand for premium and aspirational products like wine.
• India’s young population (median age ~29.5) is more open to global trends and experimenting with new tastes, including wine.
• Urbanization has resulted in exposure to international dining and drinking culture.
• A shift toward premiumization is making wine a symbol of sophistication and a preferred alternative to spirits.
• Wine is widely perceived as a healthier alternative to stronger alcoholic beverages, particularly spirits.
• Increasing female participation, especially among working women, is boosting consumption—particularly of white and rosé wines.
• The growth of online alcohol sales is enhancing accessibility and convenience, driving market expansion.

Top Imported Wine Origins in India: 

In recent years, India’s wine imports have grown significantly, with a handful of major exporting countries accounting for the vast majority of shipments.

• Spain supplies a significant portion of India’s imported wine, often positioned in competitive price segments that appeal to price-conscious consumers.
• France is valued for its established reputation for quality and prestige, appealing to consumers seeking premium and classic wine offerings.
• Australia is strong in the affordable-to-mid-range segment, with the India–Australia ECTA reducing import duties on certain wines, improving their accessibility in the Indian market.
• Italy benefits from its global reputation for high-quality wines and the increasing familiarity of Indian consumers with Italian cuisine and culture.

Challenges in the Indian Wine Market (for Imports)

• High Import Duties: A 150% basic customs duty significantly raises retail prices, limiting wider adoption—though some recent tariff relief has been granted to U.S. wines. 
• State-Level Regulations: Alcohol is governed by individual states, resulting in fragmented rules, varying taxes, and a complex regulatory landscape for distribution and sales.
• Affordable Competition: Countries like Spain and Australia benefit from competitive pricing and, in Australia's case, reduced tariffs under the ECTA, especially in the under-US$15 segment.
• Price Sensitivity: Most Indian consumers prioritize affordability, making it challenging for premium imports to scale, despite a growing high-end niche.
• Limited Consumer Awareness: General prestige exists around imported wine, especially French, but deeper knowledge of regions and varietals is limited.
• Taste Preferences: Indian consumers often favor fruit-forward, bold-flavored wines, which can contrast with the more subtle profiles of classic European wines.

Strategies for Global Producers to Succeed:

Although India remains a small market by volume, wine and spirits producers from around the world see long-term potential. Industry interest was evident at events like the 8th ‘Tastin’ India’ (2024) in Delhi, where 17 international producers showcased 100 wines and spirits to importers and distributors.

• Partner with Local Experts: Collaborate with experienced Indian importers and distributors who understand state-wise regulations, logistics, and retail dynamics.
• Introduce Entry-Level Premium Wines: Well-crafted, mid-tier wines (US$15–30) can drive volume and loyalty alongside luxury offerings.
• Educate the Market: Host tastings, masterclasses, and events to build awareness among consumers, sommeliers, hotel F&B staff, and retail teams.
• Consider Sparkling and Rosé: Sparkling wines and rosé have strong potential in India’s celebration-driven and social gifting culture.
• Be Patient and Invest Long-Term: Building awareness, distribution, and brand loyalty takes time. Producers who approach India strategically will be better positioned as the market matures.

Expandys can help you:

• Conduct market research and recommend product positioning.
• Identify and select suitable importers and distributors.
• Support hiring local representatives to grow your brand in India.

Contact us today to know more !