India Wine Market

India Wine Market Size and Share:

The India wine market size was valued at USD 229.0 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 892.0 Million by 2033, exhibiting a CAGR of 16.30% from 2025-2033. The rising disposable incomes, evolving consumer preferences, expanding wine tourism, increasing local production, supportive government policies, growing e-commerce accessibility, and the influence of the hospitality sector are factors responsible for the increasing number of India wine market shares.

The market dynamics for wine in India exhibit high growth due to several factors such as increasing disposable incomes, changing preferences of the consumer, and higher urbanization percentages. With more Indians adopting a Western lifestyle, wine consumption is getting increasingly popular, particularly among younger segments and women. The growing middle-class population along with an augmenting trend toward premium and foreign wines enhances market demand. In addition, wine tourism has increased, with vineyards and wineries promoting experiential tastings, which has increased awareness and acceptance of wine culture. Government policies, such as reduced import duties in certain states and supportive regulations for domestic winemakers, create a positive India wine market outlook.

The proliferation of e-commerce sites has also made wine more attainable for consumers to taste various types. As per the India Brand Equity Foundation (IBEF), India's e-commerce sector is projected to hit USD 325 Billion by 2030. The health advantages of moderate wine intake, particularly red wine, have led to a rise in consumption among health-aware consumers. Hospitality and food services, such as luxury hotels, fine dining restaurants, and wine bars also play an important part in dictating consumption patterns. Seasonal demand during weddings, festivals, and corporate events boosts sales further. High taxation and regulatory restrictions in some states create challenges, but the India wine market is expanding due to changes in consumer preferences and increased local production.

India Wine Market Trends:

Rising disposable incomes and changing consumer preferences

India's emerging middle class, growing affluence, and lifestyle preferences drive the growth in the country's wine market. As per reports, Indian middle-class population is expected to reach 61% by 2046. As disposable incomes increase, people are now experimenting with premium alcohol beverages, of which wine, not previously common in India, is no exception. Young working professionals in large cities such as Mumbai, Delhi, and Bengaluru have accepted wine as an aspirational, sophisticated beverage. There is also a visible consumption pattern shift, with a growth of wine consumption preference over hard liquors like whiskey and rum, which have previously played prominent roles in the Indian alcohol market. To an extent, this can be due to exposure to the global scene, foreign travelling, and increasing globalization of western culture.

Expansion of wine tourism and local vineyards

The domestic wine industry has completed a stunning turnaround in India with the rapid expansion of local vineyards and wine tourism. States like Maharashtra and Karnataka, where the climatic condition is well-suited for viticulture, have become significant centers for wine manufacturing. Leading wineries such as Sula Vineyards, Grover Zampa, and Fratelli Wines have been playing crucial roles in promoting the wine culture of India. Wine tourism was found to encourage greater appreciation of wine-by-wine consumers through trips to vineyards to taste varieties and attend various events like pairing dinners and led tours. Building on this increased exposure and knowledge of wine and wines, additional policies to push the concept were created by promoting wine tourism with overall agro-tourism.

Influence of the hospitality sector

The hospitality sector, which encompasses upscale dining establishments, deluxe hotels, and bars, significantly influences wine consumption in India. Numerous upscale venues now showcase extensive wine lists, presenting carefully chosen selections from both local and global wineries. The increasing popularity of food and wine pairings has intensified demand, as additional consumers encounter the subtleties of wine through dining experiences. Moreover, the emergence of wine-focused events, including tastings led by sommeliers and organized wine dinners, has contributed to consumer education and enhanced overall wine appreciation. Alongside the hospitality industry, the e-commerce sector has greatly enhanced the availability of wine in India. As regulatory frameworks evolve, online alcohol sales have gained prominence, particularly during and after the COVID-19 pandemic, when digital purchasing was essential.

India Wine Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India wine market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on product type, color, and distribution channel.    

Analysis by Product Type:

• Still Wine
• Sparkling Wine
• Fortified Wine and Vermouth

Still wine dominates the market due to its affordability, easy availability, and acceptance among consumers. Moreover, still wines are not like sparkling or fortified wines in the sense that they can be used for an array of Indian cuisines as against just specific types, thereby providing more opportunities for casual dining as well as fine dining. In addition, most local wineries only produce still wines, thus further increasing their market. Increased awareness of red and white wines, and their perceived health benefits, also fuels demand, making still wine the leading segment.

Analysis by Color:

• Red Wine
• Rose Wine
• White Wine

Red wine holds maximum number of shares due to its perceived health benefits, growing consumer preference, and suitability for Indian cuisine. Red wine contains many antioxidants like resveratrol, associated with heart health, making it a desirable choice for health-focused individuals. In addition, red wine's strong flavors complement Indian spices and dishes, making it a popular choice in restaurants and homes. Increasing global exposure, increasing disposable incomes, and popularity of the premium red wine brands are other additional factors that give it a stronghold in Indian wine markets.

Analysis by Distribution Channel:

• Off-Trade

• Supermarkets and Hypermarkets
• Specialty Stores
• Online Stores
• Others

• On-Trade

Off-trade dominates the market on account of growing home consumption preference, affordability, and accessibility. Supermarkets, hypermarkets, and specialized wine stores offer a wide variety of domestic and imported wines at competitive prices compared to on-trade venues like restaurants and bars. The growth of e-commerce and online alcohol delivery services has further driven off-trade sales, where it is now easier for the consumer to buy wine for personal consumption, social gatherings, and festive occasions.

Regional Analysis:

• North India
• West and Central India
• South India
• East India

West and Central India holds maximum number of shares on account of good climatic conditions, well-established vineyards, and strong consumer demand. Nashik, the "Wine Capital" of India, and Karnataka lead the way in domestic production; leading wineries include Sula, Grover Zampa, and Fratelli Wines. Regional government incentives supporting viticulture and wine tourism further contribute to visitor flows from within and outside the region. West and Central India has the largest market segment, given the growing urban population in cities like Mumbai and Pune, further fueling wine consumption.

Competitive Landscape:

Key players in the India wine market, such as Sula Vineyards, Grover Zampa, Fratelli Wines, and York Winery, have undertaken various strategic initiatives to drive market growth. One of the major efforts is increasing domestic wine production through investment in advanced viticulture techniques and high-quality grape sourcing for better quality wine and to compete with international brands. These companies have also heavily promoted wine education through tasting sessions, vineyard tours, and collaboration with hospitality institutions to increase the awareness and appreciation levels for consumers. In addition, innovative product introductions have been targeted with canned wines, sparkling wines, and premium reserve collections for catering to the evolving preference of consumers.

The report provides a comprehensive analysis of the competitive landscape in the India wine market with detailed profiles of all major companies.

Latest News and Developments:

• 25 October 2024: To mark its 25th year, Indian leading wine producer Sula Vineyards has come out with a new Merlot and put special focus on sustainability initiatives. The company has invested in solar energy where more than 50 percent of its energy needs were met through the installation of solar panels at its Nashik winery. Sula has also adopted eco-friendly practices-from using 99 percent recyclable packaging to planting over 30,000 trees around Nashik in the past few years.
• 29 January 2025: Grover Zampa Vineyards has launched a limited-edition wine called Grover Essence De Cabernet Sauvignon, crafted from hand-picked grapes and aged in oak barrels for over 36 months. The new wine offers a complex flavor profile with notes of cocoa, dark fruits, and vanilla, and pairs well with various foods including meats, chocolate desserts, and cheeses.
• 27 February 2024: Fratelli Vineyards has relaunched its M/S (Master Selection) wine range, adding a late harvest to the existing rosé, red, and white varieties. The unique soil composition in Solapur, Maharashtra, where Fratelli's vineyards are located, contributes to the minerality, freshness, and flavor of their wines. The M/S range aims to appeal to both experienced wine drinkers and novices by offering approachable blends with refined tastes.

India Wine Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India wine market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India wine market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India wine industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.