{"id":45544,"date":"2026-08-28T15:32:59","date_gmt":"2026-08-28T13:32:59","guid":{"rendered":"https:\/\/www.vinexposium.com\/?p=45544"},"modified":"2026-09-01T11:19:32","modified_gmt":"2026-09-01T09:19:32","slug":"wine-in-india-a-long-game","status":"publish","type":"post","link":"https:\/\/www.vinexposium.com\/en\/actus\/market-pulse\/wine-in-india-a-long-game\/","title":{"rendered":"Wine in India: A long game"},"content":{"rendered":"

Author: <\/strong>Nimmi Malhotra<\/p>\n

With 1.48 billion people, a fast-growing middle class, rising spending power and a newfound appetite for all things luxury, India presents the perfect growth market for wine. But players in the Indian wine industry have some very different takes.<\/strong><\/p>\n

\n

\u201cIndia had no tradition of wine on the table,\u201d says Reva Singh, editor of Sommelier India, the country\u2019s oldest wine magazine. \u201cTwenty years ago, there was next to no knowledge about how wine is different from other alcohols. That has changed to a large extent.\u201d<\/em><\/span><\/p>\n

\n

Wine has now infiltrated the Indian drinking culture, which has always been pervasive. But it remains a distant third behind spirits and beer. Each year, the average Indian consumer puts away 2.67 litres of spirits, but only 26 millilitres, or 2 tablespoons, of wine. Spirits alone outdrink wine by roughly 100 to 1.<\/p>\n

The landscape is changing fast, however. The Indian middle class, tipped to be the key driver of growth in all things luxury, is increasingly drawn to wine as an aspirational lifestyle beverage. This demographic is forecast to grow to 47% of India\u2019s population by 2031, reaching 715 million<\/strong>, according to a People\u2019s Research on India\u2019s Consumer Economy (PRICE) report.<\/p>\n

India is at an economic turning point. Master of Wine (MW) Sonal Holland<\/strong> points to a telling marker: The country\u2019s GDP per capita has reached $2,700, placing it in the upper tier of lower-middle-income economies, a threshold that signals structural change. \u201cAs disposable incomes rise, people become more willing to spend on experiences and products that reflect their aspirations,\u201d she says. \u201cThis shift is creating a fertile environment for premium wines and spirits.\u201d<\/p>\n

Two trade deals have sharpened that opportunity considerably. India\u2019s free trade agreement with the European Union will cut customs duty on wine from 150% to 75% when it comes into force, phasing down over the coming decade to 20% for premium wines and 30% for mid-range wines<\/strong>. A separate deal with Australia has already slashed customs duty on wines priced above $15 to 75%, with the rate dropping progressively to 25%.<\/p>\n

On paper, the numbers point in one direction, but the market resists an easy summary.<\/p>\n

Not one market <\/strong><\/span><\/h2>\n

India is anything but monolithic<\/strong>. The nation speaks 22 official languages, enjoys more than 30 distinct regional cuisines, and practices multiple religions. Diversity is built into the culture. Geographically and politically, India behaves less like a single market than a patchwork of 28 states and eight union territories, each with its own approach to alcohol<\/strong>. Sizes and populations vary widely \u2014 and so do the rules.<\/p>\n

Drinking ages are not consistent nationwide. Some states, Gujarat, Nagaland and Bihar among them, ban alcohol sales outright. Many states also observe legal \u201cdry days,\u201d often tied to national and religious occasions, when sales are suspended entirely.<\/p>\n

Several of India\u2019s major faiths, principally Islam, Jainism and Buddhism, discourage or prohibit alcohol as a matter of personal observance. That sensitivity holds even in states where drinking is legal and common. The patchwork shapes everything that follows, from where the wine is sold to how it is priced, taxed and perceived from state to state. It is the single fact that any producer entering India needs to absorb.<\/p>\n

\"\" Credit: a man who is reading a brochure during a session at Vinexpo Asia in Hong Kong, Vinexposium<\/p>\n

Who is drinking and why<\/span><\/strong><\/span><\/h2>\n

Wine consumption centres around Tier 1 or metro cities (like Mumbai, Delhi and Bengaluru) and is only slowly spreading to Tier 2 and 3 markets like Hyderabad and Pune. Within that footprint, drinkers are split into distinct camps.<\/p>\n

\u201cIt\u2019s a mosaic of segments,\u201d says Singh, who has chronicled this category\u2019s development since the early 2000s. \u201cThe traditional wine enthusiast continues to seek out classic styles like premium Napa and Bordeaux.\u201d The younger generation, she says, has overturned the way wine is perceived. \u201cThey drink wine not for status or prestige but to enjoy it.\u201d<\/p>\n

Holland agrees and sees in that shift a structural advantage for the category. \u201cYoung Indian consumers are curious, well-travelled, digitally connected and far less intimidated by wine than previous generations,\u201d she says. \u201cUnlike Western countries where young consumers are drinking less, India’s Gen Z is actively shaping the future of the beverage industry.\u201d That cohort of 600 million-strong Gen Z demographic is, in her view, the demographic that will drive the wine market.<\/p>\n

Pritish Matai<\/strong>, CEO of Aspri Spirits Limited, a leading distributor of over 300 wines and spirits and a millennial himself, argues that Indian youth drink to get drunk, not to savour. \u201cRupee for rupee, wine is an expensive way to get drunk in India,\u201d he says. High taxation puts wine in competition with premium spirits like Johnnie Walker and Absolut Vodka. More often than not, the higher proof spirit with a longer shelf life wins the night.<\/p>\n

Even so, there is a genuine curiosity around wine, running alongside that scepticism. Wine dinners and masterclasses are on the rise across age groups, and Holland, whose social media following runs to 1.5 million, believes engagement has to follow the consumer rather than wait for them. \u201cThe most effective way to engage this digitally savvy generation is through authentic voices and genuine connections with the audience,\u201d she says.<\/p>\n

What they are reaching for, once engaged, is shifting, too. \u201cRed wine remains a popular choice due to its positive imagery, perceived health benefits and wider availability,\u201d Holland says. \u201cRos\u00e9 is also gaining popularity and is sometimes seen as a sophisticated alternative to reds.\u201d<\/p>\n

In sparkling wine, domestic brands lead, followed by Prosecco. \u201cIts approachable style, versatility and association with celebrations have made it a favourite among both new and experienced wine drinkers,\u201d Holland says. Champagne remains aspirational but is largely priced out of the on-trade sector.<\/p>\n

The old pairing rulebook has gone out the window. \u201cIndia is pairing very differently today,\u201d says Amrita Singh, co-founder of\u00a0Cellar 33<\/a><\/strong><\/span>, an international marketing agency representing more than 100 producers from 13 countries exclusively for the Indian market. \u201cWe are no longer limited to the old chich\u00e9 of spicy food needs off-dry Riesling or Gewurztraminer. You see bold Cabernet or Syrah with spicy curries. People are experimenting.\u201d<\/p>\n

How big is the market, really? <\/strong><\/span><\/h2>\n

\u201cIndia is a really small market,\u201d says Vishal Kadakia, founder of the Mumbai-based wine import and distribution business, Wine Park, \u201cand there is only one way to go: up.\u201d<\/p>\n

The numbers, depending on which you believe, tell rather different stories. According to IWSR, India consumed 4.26 million cases of wine in 2024<\/strong>, with the market projected to grow at a 4.3% CAGR through 2029. Value-based research firms like IMARC put that growth rate closer to 14%.<\/p>\n

On the ground, individual importers also report different figures. Kadakia puts his year-on-year import growth at roughly 10%, while the Wine Park portfolio has expanded from 90 wines to 160, nearly an 80% rise.<\/p>\n

The gap between official projections and what operators actually experience indicates producers must consider both the formal trade data and live commercial reality.<\/p>\n

Within IWSR\u2019s total, around 1 million cases are sold by BroCode, a 15% ABV hybrid RTD made with fortified wine, priced at 150 rupees. That leaves nearly 3.26 million cases between domestic and international players \u2014 a figure that is closer to the true market.<\/p>\n

Of those, domestic wines claim roughly 70% of the volume. Market leader Sula accounted for close to 750,000 cases in 2024, a number that has since grown to close to 1 million, followed by Fratelli and Grover.<\/p>\n

International wines \u2014 led by Australia and Chile \u2014 make up the remaining 30% of the market, around 750,000 cases by Kadakia\u2019s estimate. Of these, around 60% flows through the on-trade sector (HORECA), claims 60%, leaving 40% going through retail.<\/p>\n

Among established international players, Jacob\u2019s Creek was long the clear market leader, selling close to 200,000 cases till 2024. Its position has become harder to read since ownership passed from Pernod Ricard to Australian Wine Holdco. Sources we spoke to were unable to confirm whether the brand\u2019s volumes have held steady through the transition.<\/p>\n

Putting a dollar figure on all of this remains difficult. The closest available estimate comes from Sonal Holland\u2019s forthcoming India Wine Insider report for 2026, which values the country\u2019s wine market at more than $250 million.<\/p>\n

\"Presentation Credit: presentation from Sonal Holland during the exhibition Vinexpo Asia in Hong Kong<\/p>\n

The rise of price point wines <\/span><\/strong><\/span><\/h2>\n

Most domestic wines \u2014 Sula, Fratelli, Grover, Krshma among them \u2014 sit under the 3,000 rupees ($29) bracket. International wines tend to begin where domestic wines end, occupying the segment above $30. According to a 2024 IWSR report, the bulk of the market sits firmly at the value end. Nearly 93% of wines sold in India retail below 3,000 rupees. Operators we spoke to reveal that the ceiling is closer to 2,000 rupees.<\/p>\n

That concentration has drawn a wave of price-point wines strategically positioned between 1,000 and 2,000 rupees. Some have captured the real consumer interest. Fishing Cat, for instance, a modern varietal-based wine and a private label created by High Spirits in collaboration with Abruzzo-based Cantina Tollo and priced at retail for 1,340 rupees ($14) in Delhi, has built a genuine following. Others are a little more nondescript, private labels calibrated to a number rather than a quality proposition.<\/p>\n

The distinction matters more than it might appear. Malay Rout, founder of the Wine & Spirits Club of India (WSCI), a trade media platform, warns that a bad first bottle in a market of first-time drinkers has consequences well beyond a single lost sale. \u201cFocusing primarily on price can be limiting, especially for beginners or less experienced wine consumers,\u201d he says. \u201cIf the wine does not suit their palate \u2026 it can result in a disappointing experience, potentially discouraging them from exploring wine further.\u201d<\/p>\n

The cost of getting to the glass<\/strong><\/span><\/h2>\n

\u201cEven the cheapest wine is a luxury item,\u201d says Sanjay Menon, founder and CEO of Sonarys, an ultra-premium wine importer based in Mumbai. \u201cEven Jacob\u2019s Creek is sold at a princely price of 1,800 rupees ($18) here. When something that costs $2 to $4 in Europe costs $20 here, even that kind of wine can only be accessed by the ultra-rich.\u201d<\/p>\n

The reason is the current duty deck. Customs duty, state tax and trade margins combine to escalate the wine price by close to 10 times between the shore and the retail shelf, and even then, it does not land at the same price in two cities. The 2,000 rupees ($21) discussed above, for instance, corresponds to a cost, insurance and freight (CIF) cost of just 200 rupees ($2).<\/p>\n

Most states levy a percentage-based ad valorem tax, with one notable exception: Haryana, a state in the north of India, charges a flat 2 rupees per litre import fee regardless of value.<\/p>\n

Matai confirms the variation in prices: \u201cThe same wine in our portfolio could be for around 1,500 rupees in Bangalore, closer to 2,000 rupees in Mumbai or Delhi and even higher in Hyderabad.\u201d<\/p>\n

The EU trade deal affects the central duty stack but does nothing to address state-level taxation, which will remain as fragmented as it is today. Currency fluctuations compound the problem from the other direction. \u201cWhen the rupee weakens, importers cannot always pass the higher cost to consumers without denting demand,\u201d Holland says.<\/p>\n

The premium market <\/strong><\/span><\/h2>\n

On official figures, India\u2019s ultra-premium wine segment might appear flat, but Menon, whose portfolio includes Ch\u00e2teau Latour, Sassicaia, Burlotto, Gaia, argues that is an illusion.<\/p>\n

\u201cAt the very top, you are talking about maybe a thousand people at most. They do not want \u2018good\u2019 wine; they want the best of the best, and they are perfectly happy to pay international prices for it \u2014 whether in Mumbai, London, or on a yacht in the Mediterranean,\u201d Menon says. \u201cFrom a consumer point of view, it has grown a lot, but a lot of the consumers are buying it outside the system,\u201d he says, explaining that \u201cmost people hand-carry the wines from their travels. So, the real growth has gone off the books completely outside the system.\u201d<\/p>\n

Holland has witnessed a growing appetite for fine wines through her high-end sessions, which offer exclusive access and immersive experiences. \u201cWhat makes this segment particularly important is its ability to validate trends,\u201d she says. \u201cTheir choices ripple through their social and professional circles, influencing broader consumer behaviour over time.\u201d<\/p>\n

\"An Credit: an indian man attending a session dedicated to indian beverages industry during the exhibition Vinexpo Asia.<\/p>\n

What the trade deals might actually do <\/strong><\/span><\/h2>\n

Ask the industry what the new FTAs mean for Indian wine, and the timeline varies more than the sentiment does.<\/p>\n

Kadakia is optimistic. “I hope the FTA will reduce prices and unlock more by-the-glass and premium consumption,\u201d he says. \u201cI believe the market could hit an inflection point within five years, provided the culture continues to build and more quality wines and brands enter and invest.\u201d<\/p>\n

Amrita Singh expects the impact to ripple beyond the headline prices: \u201cOnce more diverse wines come in at sustainable prices, they put pressure on the whole ecosystem \u2014 importers, hospitality groups, educators and sommeliers. The product itself forces the culture to evolve.\u201d<\/p>\n

Menon is the most measured voice. \u201cWe will not see any immediate impact on the pricing, especially for luxury wines or even mid-price wines,\u201d he says, citing currency devaluation and established lower-band consumption patterns. But he expects that to correct itself over the year, and for benefits to be seen over the next 4-5 years. \u201cThere will be a definite movement up the quality ladder, but I don’t know if the volumes will go dramatically,\u201d he says.<\/p>\n

Holland\u2019s optimism has clear conditions attached. \u201cDespite the benefits, brands entering India must recognise that lower duties alone will not guarantee success,\u201d she says. Growth will hinge on creating brand awareness through education and consumer engagement. Her advice to anyone eyeing the opportunity: \u201cThe Indian market rewards those who invest time in learning, adapting and building steadily. Use this period to understand the market and build a solid strategy for your entry and success.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Author: Nimmi Malhotra With 1.48 billion people, a fast-growing middle class, rising spending power and a newfound appetite for all things luxury, India presents the perfect growth market for wine. But players in the Indian wine industry (\u2026)<\/p>\n","protected":false},"author":14,"featured_media":45562,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[340],"tags":[],"class_list":["post-45544","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-pulse","format-article"],"acf":[],"yoast_head":"\nWine in India: A long game – Vinexposium<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vinexposium.com\/en\/actus\/market-pulse\/wine-in-india-a-long-game\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Wine in India: A long game – Vinexposium\" \/>\n<meta property=\"og:description\" content=\"Author: Nimmi Malhotra With 1.48 billion people, a fast-growing middle class, rising spending power and a newfound appetite for all things luxury, India presents the perfect growth market for wine. 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