India Wine Market Outlook to 2028

India Wine Market Overview

• The India wine market, valued at USD 6 billion based on a five-year historical analysis, is primarily driven by the increasing preference for premium and boutique wines, particularly among millennials and urban populations. Wine consumption is gaining popularity as a lifestyle choice, especially during social events such as weddings, parties, and corporate events, where wine is viewed as a sophisticated alternative to traditional spirits.

• West and Central India dominate the wine market, with key cities such as Mumbai, Nashik, and Pune emerging as major wine production hubs. Nashik, often referred to as "India's wine capital," has favorable climatic conditions for viticulture and is home to several prominent wineries such as Sula Vineyards and Grover Zampa Vineyards.
• The Maharashtra Grape Processing Industrial Policy, introduced in 2022, continues to support wine producers by providing subsidies for grape cultivation and winemaking facilities. The policy disbursed over INR 40 crores in 2023 to support small and medium-scale wineries in Nashik and Sangli districts, driving wine production capacity by an estimated 30%.

India Wine Market Segmentation

By Product Type: The market is segmented by product type into Still Wine, Sparkling Wine, and Fortified Wine. Still wine, which includes popular categories like red and white wines, holds the dominant market share. The appeal of still wines, especially red wine, stems from the growing health-conscious trend and the perceived health benefits associated with moderate consumption. Furthermore, red wines' robust flavors and adaptability with Indian cuisine make them highly popular among the local consumer base.

By Distribution Channel: The wine market is also segmented by distribution channel into Off-Trade and On-Trade segments. Off-trade, which includes supermarkets, hypermarkets, specialty stores, and online channels, commands the majority of the market share. The growing adoption of e-commerce platforms has made wine more accessible, especially in urban centers, where consumers appreciate the convenience of online shopping and home delivery options.

India Wine Market Competitive Landscape

The market is characterized by a blend of domestic players and international brands. Major companies in the market include both large-scale producers and boutique wineries. The competitive landscape is driven by innovation in product offerings, vineyard tourism, and strategic marketing campaigns targeting millennial consumers.

India Wine Market Analysis

Market Growth Drivers

• Growing Consumer Base in Urban Regions: The rising demand for wine in India's urban centers is attributed to changing lifestyles, a shift in consumer preferences, and increasing awareness of wine culture. According to the Indian Wine Academy, urban dwellers, particularly in metro cities such as Mumbai, Delhi, and Bengaluru, accounted for over 5 million wine consumers in 2023.
• Increased Wine Tourism in Maharashtra and Karnataka: The growth of wine tourism in India, particularly in the wine-producing regions of Maharashtra and Karnataka, is boosting local wine consumption. Nashik, often called the "Wine Capital of India," recorded more than 250,000 visitors to its wineries in 2023. This influx of tourists supports local producers, with sales in local wineries accounting for an increase of nearly 100,000 bottles during the tourism season.
• Expanding Availability of Indian Wines in Premium Hospitality Sectors: The premium hospitality sector, including high-end restaurants, luxury hotels, and resorts, is increasingly adopting Indian wines in their offerings. In 2023, leading Indian wine brands such as Sula and Grover Zampa reported selling over 1.5 million bottles through premium hospitality chains, accounting for nearly 20% of their total domestic sales.

Market Challenges

• Limited Consumer Knowledge of Wine Varieties: Despite growing consumption, there is still a lack of awareness among Indian consumers about different wine varieties and their pairing options. A 2023 survey conducted across five major cities revealed that 60% of consumers could not differentiate between red, white, or sparkling wine.
• Supply Chain Disruptions and Distribution Gaps: The wine distribution network in India is fragmented and subject to varying state-level regulations. In 2023, multiple wineries reported delays in transportation and distribution, particularly to non-metro regions. This resulted in an estimated loss of INR 10 crore for small and medium-sized wine producers who faced logistical issues such as temperature-controlled storage and regulatory approvals at the state level.

India Wine Market Future Outlook

Over the next five years, the India wine industry is poised for growth driven by rising consumer awareness, increasing disposable incomes, and the ongoing shift towards premiumization. The rise of online wine sales channels and the growing interest in wine tourism are expected to further boost the market.

Future Market Opportunities

• Expansion of Wine Tourism Infrastructure: Over the next five years, the expansion of wine tourism infrastructure in key wine-producing regions such as Nashik and Nandi Hills is expected to boost local consumption. Maharashtras ongoing investments in building wine tourism facilities, including vineyard resorts and wine trails, will likely attract 500,000 visitors annually by 2027.
• Introduction of Innovative Wine Flavors and Packaging: As consumers seek more variety, wine producers are expected to experiment with innovative flavors, including fruit-infused wines and exotic grape blends, by 2026. In addition, sustainable packaging solutions such as eco-friendly wine bottles and boxed wines will likely gain traction, addressing environmental concerns.