India Wine Market, By Product Type (Still Wine, Sparkling Wine, Fortified Wine & Vermouth), By Color (Red Wine, Rose Wine, White Wine), By Sales Channel (Liquor Stores, On-Premises, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

India Wine Market was valued at USD 226.21 million in 2024 and is anticipated to grow USD 406.08 million by 2030 with a CAGR of 10.30% during forecast period. India's wine market is witnessing steady growth, driven by increasing urbanization, rising disposable incomes, and evolving consumer preferences. The expanding middle class and millennials are showing a growing inclination toward premium and imported wines. Domestic production is also gaining momentum, with local wineries improving quality and expanding distribution networks. Government initiatives, including relaxed import regulations and promotional efforts, further support market expansion. Wine tourism, particularly in regions like Nashik, is boosting awareness and demand. While challenges such as high taxation and limited awareness persist, the market's future looks promising with increasing acceptance of wine as a lifestyle beverage.

Key Market Drivers

Rising Disposable Incomes and Changing Lifestyles

India's economic growth has resulted in a significant rise in disposable incomes, particularly among the urban middle class and millennials. With increasing purchasing power, consumers are willing to explore premium and imported wines. The shift in lifestyle preferences, influenced by global exposure and rising aspirations, has led to a greater acceptance of wine as a sophisticated and aspirational beverage. Unlike traditional alcoholic drinks such as whiskey or beer, wine is often associated with luxury, wellness, and social gatherings, making it an attractive choice for the affluent population.

Additionally, women are emerging as an important consumer segment, as they perceive wine as a more socially acceptable and refined alcoholic beverage compared to spirits. This demographic shift is further fueling wine consumption across metropolitan cities like Mumbai, Delhi, and Bangalore, where fine dining and social drinking trends are gaining traction.

Expanding Wine Tourism and Domestic Wine Production

India’s wine tourism industry is playing a crucial role in promoting wine consumption and educating consumers about different varieties and their benefits. Maharashtra’s Nashik region, often referred to as the "Wine Capital of India," has seen a surge in vineyard tourism, with wineries offering guided tours, tastings, and food pairings. Sula Vineyards, Grover Zampa, and Fratelli Wines are among the leading domestic players expanding their presence through wine tourism initiatives.

Domestic wine production is also on the rise, with Indian winemakers improving quality to meet international standards. The use of advanced viticulture techniques, climate-adaptive grape varieties, and modern winemaking practices has enhanced the quality of Indian wines, making them competitive with international brands. The increasing variety of locally produced red, white, rosé, and sparkling wines is helping the market cater to diverse consumer preferences.

Growing Health Awareness and Perceived Wellness Benefits

Consumers in India are increasingly conscious of health and wellness, and wine is often perceived as a healthier alternative to other alcoholic beverages. Red wine, in particular, is associated with antioxidants like resveratrol, which is believed to support heart health, reduce inflammation, and offer anti-aging benefits. The rise in moderate and responsible drinking culture among urban consumers has also contributed to the demand for wine.

Additionally, wine is being positioned as a food-pairing beverage, enhancing dining experiences in both home settings and fine dining establishments. The growing popularity of international cuisines, particularly Mediterranean, European, and Japanese foods, has created an affinity for wine consumption alongside meals. As more Indian consumers embrace global dining habits, the demand for both domestic and imported wines continues to rise.

Download Free Sample Report

Key Market Challenges

High Taxation and Regulatory Barriers

One of the most significant challenges for the wine industry in India is the high taxation and complex regulatory framework. Wine, like other alcoholic beverages, falls under the purview of state governments, leading to varying taxation rates and distribution policies across different states. This fragmented regulatory landscape makes it difficult for wineries and importers to operate smoothly across the country.

Import duties on foreign wines are particularly steep, often exceeding 150%, making them expensive for consumers. Even domestically produced wines face high excise duties, VAT, and licensing fees, increasing the retail price. As a result, wine remains a luxury product in India, primarily consumed by the affluent class in metropolitan cities. The lack of uniform taxation and an inconsistent regulatory structure continue to act as a bottleneck for the industry's growth, discouraging both domestic and international players from investing further.

Limited Consumer Awareness and Cultural Barriers

Unlike whiskey or beer, which have long been dominant in India's alcoholic beverage market, wine is still a relatively new concept for many consumers. A significant portion of the population lacks awareness about different wine varieties, their consumption methods, and food pairings. Additionally, many Indians still perceive wine as an elite or foreign beverage, making it less accessible to the broader market.

Cultural barriers also play a role in limiting wine consumption. In many parts of India, alcohol consumption is still stigmatized, particularly among women and in conservative regions. The lack of a well-established wine-drinking culture means that consumer education is crucial for market expansion. While urban centers like Mumbai, Delhi, and Bangalore are gradually embracing wine as a lifestyle product, penetration in Tier 2 and Tier 3 cities remains low. Without proper education and marketing efforts, wine may continue to be perceived as an occasional indulgence rather than a regular beverage choice.

Key Market Trends

Rising Demand for Premium and Imported Wines

One of the most notable trends in India’s wine market is the growing demand for premium and imported wines. With rising disposable incomes and greater exposure to global lifestyles, Indian consumers, especially millennials and affluent urban dwellers, are increasingly opting for high-quality wines. Imported wines from countries like France, Italy, Spain, Australia, and Chile are gaining popularity, as consumers seek unique flavors and superior quality.

The preference for premium wines is also driven by gifting culture and special occasions. Wine is becoming a popular choice for corporate gifts, wedding celebrations, and festive seasons, further boosting the sales of high-end brands. Additionally, international wine brands are investing in India, expanding their distribution networks, and launching India-exclusive variants to cater to the evolving tastes of Indian consumers.

Growing Popularity of Sparkling and Rosé Wines

Indian consumers are gradually shifting away from traditional red and white wines and exploring sparkling wines and rosé wines. Sparkling wines, particularly prosecco and champagne-style wines, are gaining traction among young consumers due to their refreshing taste, lower alcohol content, and association with celebrations and special occasions. Indian wineries such as Chandon India and Sula Vineyards have capitalized on this trend by introducing locally produced sparkling wines at competitive prices.

Rosé wines are also witnessing a surge in demand, especially among female consumers and first-time wine drinkers. Their light, fruity, and easy-to-drink profile makes them an appealing choice for social gatherings, brunches, and casual drinking occasions. As Indian consumers become more experimental with their choices, winemakers are diversifying their portfolios to include a wider range of sparkling and rosé options to cater to evolving tastes.

Segmental Insights

Sales Channel Insights

Liquor stores dominated the India wine market due to their widespread availability, ease of access, and regulatory framework favoring offline alcohol sales. Unlike restaurants and duty-free shops, liquor stores offer a diverse range of wines at competitive prices, making them the primary distribution channel. Consumers, especially in metropolitan areas, prefer purchasing wine from liquor stores for home consumption, gifting, and social gatherings. Additionally, state-run liquor outlets and private retail chains are expanding their wine selections, further driving growth. Despite the rise of online alcohol delivery, liquor stores remain the preferred choice for wine purchases across India.

Color Insights

Red wine dominated the India wine market due to its rich flavor profile, perceived health benefits, and strong consumer preference. Indian consumers associate red wine, particularly Cabernet Sauvignon, Shiraz, and Merlot, with antioxidants and heart health, making it a popular choice. The growing wine culture in urban areas, increasing wine tourism, and the preference for red wine in social gatherings and fine dining further fuel its demand. Domestic wineries, including Sula Vineyards and Grover Zampa, focus heavily on red wine production, solidifying its position as the leading segment in India's expanding wine industry.

Download Free Sample Report

Regional Insights

North India dominated the India wine market due to its high urban population, rising disposable incomes, and evolving wine culture. Cities like Delhi, Chandigarh, and Gurgaon have a strong demand for premium and imported wines, driven by an affluent consumer base and a thriving hospitality sector. The region's vibrant nightlife, fine dining culture, and corporate gifting trends further boost wine consumption. Additionally, duty-free liquor stores in Delhi contribute to significant wine sales. As awareness and accessibility increase, North India continues to lead the market, attracting both domestic and international wine brands looking to expand in the country.

Recent Developments

• ​In Jan 2025, Grover Zampa Vineyards introduced 'Grover Essence De Cabernet Sauvignon,' a limited-edition wine crafted from hand-picked grapes in Nandi Hills. Aged over 36 months in oak barrels, it offers bold aromas of cocoa, dark fruits, and violets.

• In May 2024, ​Fratelli Wines relaunched its Master Selection (M/S) range, introducing a 2023 vintage that includes rosé, red, white, and a new late harvest wine. This collection was initially developed in collaboration with renowned winemaker Steven Spurrier.

• In March 2024, ​Big Banyan has launched new single-varietal wines. The range includes reds like Merlot, Shiraz, and Cabernet Sauvignon, and whites such as Chenin Blanc, Sauvignon Blanc, and Chardonnay. The winery also produces a Sangiovese rosé called Rosa Rossa and a dessert wine named Bellissima.

Key Market Players

• Radico Khaitan Limited (Magic Moments)
• The Absolut Company AB
• Diageo India
• Noblewood Limited (Beluga)
• Bacardi India Private Limited (Eristoff)
• Campari India Private Ltd (Skyy Wine)
• Hermes Distelliery Private Limited (Red Bliss)
• Wine-Searcher Limited
• Modi Illva India Pvt. Ltd.
• Hound Technologies Private Limited (Barfecto)

Report Scope:

In this report, the India Wine Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India Wine Market, By Product Type:

o   Still Wine

o   Sparkling Wine

o   Fortified Wine & Vermouth

• India Wine Market, By Color:

o   Red Wine

o   Rose Wine

o   White Wine

• India Wine Market, By Sales Channel:

o   Liquor Stores

o   On-Premises

o   Others

• India Wine Market, By Region:

o   North

o   South

o   West

o   East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the India Wine Market.

Available Customizations:

India Wine Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

India Wine Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at sales@techsciresearch.com