A new wave of young, urban consumers is reshaping India’s alcohol landscape and wine is the unexpected star. With trade deals and changing tastes accelerating demand, global producers are watching closely. Kathleen Willcox reports.
A mammal with poor eyesight and hearing, the sloth is so slow-moving, algae grows in the grooves of its humid fur. Often dubbed “lazy” because of their unhurried approach to motion, the sloth’s vaguely lugubrious method of getting from point A to point B helps them conserve energy and remain undetected by predators.
The wine industry, which has generally reacted to changing market conditions with the creeping reflexes of a sloth, often seems, instead of wise and methodical, obtuse and almost clinically unbothered.
The outlook for the wine market broadly, as you may have heard, is grim. Global wine consumption hit its lowest level since 1961 last year, according to the International Organisation of Vine and Wine’s State of the World Vine and Sector report. Year-over-year, wine depletions were down 3.3%, with 15 out of 20 markets drinking less.
In China, once considered the next great world wine market, the numbers were particularly startling: 19.3% less wine was guzzled. The US, France, Italy, Germany and the UK, the countries with the most enthusiastic drinkers in the world, were also way down.
India’s thirst for wine bucks global trends
But guess where wine consumption is not just growing, but skyrocketing? India. Wine imports grew more than 50% in the first half of this year, with the volumes of wine sold in India’s domestic market and travel retail market increasing 6% and 13%, respectively.
Many producers have been reluctant to jump into this dynamic and growing market, which at first glance seems short-sighted.
But perhaps the snail’s pace will pay off. The country imposes a 150% import duty on all wines, one of the highest rates in the world. Australia recently managed to slash these rates through a trade deal to 75%, and the EU and India are also reportedly close to a deal. Lowering the price of entry would certainly make wine more marketable to the growing community of wine lovers, led by urbanites, women and young people.
While wine consumption in India is still low, the alcoholic beverage sector there is the world’s third largest, led by spirits and beer, it is poised to grow. Currently, per capita consumption rates of wine are estimated to range from 0.03 litres to 0.04 litres per capita, but by US$1.89 billion by 2028 at a compound annual growth rate of 47.6%, driven by millennials, who account for 40% of the total working-age population in the country.
Keep in mind that India’s population (1.4 billion) has surged past China’s, and that the middle class in India grew 6.3% between 1995 and 2021, and is projected to represent 38% of India’s population by 2031, and 60% by 2047, according to a report from the People Research on India’s Consumer Economy (PRICE).
As consumption grows and is set to, potentially, skyrocket, producers from across the globe are circling India, and growing their presence, or probing possibilities. Here’s what they’re finding.
Producers relish India’s blank slate
The Adelaide-based Penfolds has had a presence in India since the 1960s, and has seen the market evolve considerably during that time, says Yodissen Mootoosamy, general manager of global sales.
“India stands out as one of the most vibrant and promising wine markets for us now,” Mootoosamy says. “It’s economically dynamic, culturally rich and increasingly open to premium experiences. We’ve begun by expanding distribution in key states, enhancing availability and creating immersive brand experiences tailored to Indian consumers. So far, the response has been encouraging.”
Tailoring experiences and putting yourself in the mindset of the average Indian consumer is key.
“Wine is not in our DNA like it is in Europe,” says Dinesh Kumar, owner of wine importing company Elan Distribution in New Delhi. “We have been importing wine since 2013, and the market is changing very quickly, but we are still learning about wine in India. A very small percentage is extremely knowledgeable, but most consumers want something that is fruit-forward, not very complex, and not very high tannin.”
Many producers view this blank slate, free of the prejudices against certain styles of wine, perhaps subconsciously absorbed in Western culture.
“India, like the rest of the Asian market, is a new consumer without preconceived notions about wine, so it’s very interesting for our more traditional wines, as they aren’t stigmatised by consumers,” says Samuel Pérez, winemaker for Bodegas y Vinedos Vega Real in Ribera del Duero. “We can reach younger consumers who are able to appreciate the quality of our wines without thinking they’re too young or not rich enough to drink them.”
At Familia Torres, which has wineries and vineyards in Spain, Chile and California, they are exported to more than 100 countries. Global communications director Isabel Vea Barbany explains that Torres launched in India in 1978, and in the past four decades, the team has learned a great deal about both the challenges and promise inherent in this growing market, especially as a trade agreement is expected.
“We are increasingly focusing on younger, urban consumers who are more open to trying imported wines and exploring a new generation of wines,” Barbany notes. “Additionally, the growing demographic of women wine drinkers represents a significant area of growth, as wine is becoming an increasingly popular choice among women compared to other alcoholic drinks such as beer and whisky.”
Mumbai, Bangalore and New Delhi are by far the leading consumers of wine, with growth in Gurgaon, Pune and Hyderabad, she notes.
Producers tap India for aggressive expansion
Many producers that dipped their toes into the market initially are preparing for a thorough dive.
Nadia Zenato, owner of Zenato Winery in Lugana, Italy, says that the tastes in India are already showing signs of maturing.
“India is a market traditionally linked to spirits, and in recent years, while we have seen significant growth in wine consumption, there was initially a clear preference for reds,” Zenato says. “But today there is a growing interest in white wines. This journey requires education and discovery, aimed at introducing Indian consumers to new product types. It’s not about imposing a trend, but rather accompanying and supporting a change that is already underway.”
Kumar, who aims to grow his stable of imported wine labels from 20 to several dozen this year, agrees that education is essential, and says the brands he’s worked with that have found the most traction have also put more boots on the ground.
“India is big, and it’s a diverse country,” Kumar says. “You need to come out here and visit, meet people. They are open to wine, but the personal connection and the storytelling and experience are very important if you want to be successful.”
Ana Lopez Lidon, export manager at Penedes, Spain’s Gramona, first visited India in 2015 and says the trip was a game-changer.
“We presented our wines to hotels and restaurants, and then participated as a guest jury for a sommelier competition,” Lidon recalls. “It was eye-opening to see the potential of our wines in India. We met a new generation of sommeliers and saw how our wines could match well with Indian gastronomy.”
At the moment, the percentage of wine exported to India is low, but growing. Like Zenato, Lidon sees the biggest potential in white wines.
Eager to jump in, or maybe not
There are a lot of producers who are still assessing India and weighing the pros and cons.
“We’ve really been pushing into international markets recently because it’s no secret that the U.S. is in a slump,” says Jason Lede, general manager and COO at Cliff Lede Vineyards in Napa. “India is an increasingly important market. But we are already in several markets, and we want to make sure we have the right connection before we expand and invest time and resources.”
Lede is keeping his eyes out for the right connection in India, but says he isn’t ready to force it because at 25,000 cases a year, “we don’t need to go into another market unless it really makes sense.”
The team at Bodegas Valduero already exports to 50 markets, and they are eagerly anticipating their entry into India this year.
“The premium wine segment is growing rapidly due to the large fortunes residing there and their fast growth,” says Jose Luis Muguiro, Valduero’s export manager, noting that they are preparing to send their first wines now. “We expect within two years that we could sell a minimum of three to five pallets in India.”
The team at Revana Vineyards, which operates three wineries (Revana Estate in St. Helena, Alexana Winery in the Willamette Valley and Corazón del Sol in Mendoza) and was founded by Dr Madaiah Revana, who hails from a small village in southern India, is preparing for an in-person launch in 2026.
“Because of the tariffs, the price of wine in Mumbai or New Delhi is going to be eight or 10 times what it would be here,” says Revana’s general manager, Jeff Lewis. “So we were back and forth on entering the market for years. But because of Doc’s connection to the country, and the deep roots and relationships he has there already, we have decided it makes sense.”
The team is currently ensuring that all of the right import and distribution partnerships are established before they go in.
“We don’t want to waste anyone’s money or time by not doing it right,” Lewis says. “You should never enter a market unless you’re fully prepared to invest in the relationships, but we’re there now. We are really looking beyond Europe and Canada at this point, and we are very excited about the relationships we’re forging. We represent wineries in Napa, Oregon and Argentina, and our owner is the first Indian person to be able to say that. He never wanted to focus on that, but now we say it’s time he did!”
Slow and steady could win the race
The wine market’s sometimes lumbering and ham-fisted response to market changes may have hurt it in mature markets, but it may be necessary for success in emerging ones. The slow entry into the dynamic, but rapidly evolving and highly taxed Indian wine market allows brands and the Western wine industry as a whole to understand more about what consumers there want, and how to get it to them most effectively.
Will India deliver the CAGR the wine industry sorely needs? Watch this space.
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