The Grape Awakening: India’s Wine Market on the Rise

Wine and India weren’t always a natural pairing.

For years, wine remained a niche indulgence, reserved for the elite or special occasions.

It was the stuff of foreign films, a symbol of sophistication, not something you’d find on an Indian dinner table.

Today, that’s changing.

India’s wine industry is growing fast.

It is currently valued at ₹1,400 crore and is expected to reach ₹3,500 crore by 2028.

That’s a 20% compound annual growth rate. By 2028, the industry could uncork $440 million.

India’s love affair with wine is growing.

Today, nearly 10 million Indians enjoy wine regularly, with most enthusiasts residing in urban hubs.

Even Tier II and III cities are catching on.

For many, wine represents sophistication and a new kind of lifestyle.

In 2022, Indians consumed 38 million litres of wine.

This year, the average per-person consumption is set to reach 0.43 litres.

Though the numbers are small, the potential is massive.

India ranks 77th globally in wine consumption, leaving plenty of room to grow.

Maharashtra leads the charge as India’s Napa Valley.

Around 85-90% of the country’s wine comes from this state, with Nashik as its heart.

Maharashtra has over 9,000 acres of vineyards and 77 wineries producing a variety of wines.

A few big names dominate the market. Sula Vineyards leads with a 60% share.

Fratelli Wines holds 25-30%, while Grover Zampa accounts for 7%.

United Spirits boasts a ₹1.05 lakh crore market cap and reported ₹1,452 crore profit in FY24.

Meanwhile, Radico Khaitan follows with a ₹30,120 crore market cap and ₹270 crore profit in FY24.

Millennials are driving the wine wave.

About 45% of Indian wine drinkers are aged 25-34, while 30% are aged 35-44.

Younger Indians love experimenting, and wine offers a blend of status and novelty.

It’s seen as sophisticated yet approachable, appealing to middle-class and upper-middle-class circles.

Indian wines are also evolving.

New flavours, fruit-infused wines, and organic blends are becoming popular.

For health-conscious drinkers, wine is seen as a better alternative to spirits.

Wine tourism is gaining traction too.

Vineyard tours and tasting sessions are turning wine into an experience, not just a drink.

But challenges remain.

Advertising restrictions make it hard to promote wine to new audiences.

Anti-alcohol campaigns and a shift toward non-alcoholic drinks are hurdles.

Younger drinkers value wellness, which can conflict with alcohol consumption.

As wine consumption and awareness grow, India is also importing more wine.

This boost is partly due to a 50% reduction in excise duties on imported alcohol, which were cut from 300% to 150% in 2021.

This will expose Indian consumers to global flavours and create healthy competition for domestic brands.

India’s wine industry is just beginning to reach its full potential.

With more people embracing wine, new trends emerging, and global flavours becoming more accessible, the future looks promising.

Vineyards are growing, and the market is expanding fast.

With young drinkers leading the way, wine is becoming part of everyday life.

As India’s wine culture blossoms, the world is starting to take notice.

The next few years hold exciting possibilities, both for investors and consumers, making it an exciting space to keep an eye on.