The Indian wine market is entering a defining decade – driven by changing consumer preferences, growing appreciation for quality and opportunities that have only begun to unfold.
Looking Back
Around ten years ago, in 2016, I wrote a research paper on the factors driving the rapid growth of the Indian wine industry. Perhaps it came at an opportune time, when the Indian wine market was on the cusp of consolidation and steady growth. It attracted considerable attention and enjoyed a wide readership.
Looking back today, I have a sense of déjà vu. Once again, I find myself reflecting on the decade ahead. As then, I believe the Indian wine market stands at the threshold of another defining phase – one in which the numbers will speak for themselves.
It is immensely satisfying to see how many of the ideas discussed in that paper have found expression over the past decade. The market has grown significantly in value, wine consumption has risen steadily and consumer acceptance has broadened. The optimism expressed then now finds support in the market itself.
The transformation is perhaps best understood through a few key indicators.
India’s Wine Market – Then and Now
| Parameter | Around 2016 | 2026 |
| Market Value | ~US$250 million | ~US$1.01 billion |
| Annual Wine Sales | ~2 million litres | ~12.9 million litres |
| Per Capita Consumption | ~0.02 litres | ~0.08 litres |
| Market Stage | Emerging | Increasingly premium |
| Consumer Base | Niche | Rapidly expanding |
The Next Decade Begins
The journey of the last ten years has been remarkable. Yet, in many ways, it feels as though we are only getting started.
Despite crossing the billion-dollar mark, wine still accounts for less than one per cent of India’s alcoholic beverage consumption. Per capita consumption remains among the lowest in the world. These are not signs of a mature market. They are indicators of enormous untapped potential waiting to unfold.
A New Indian Wine Consumer
Perhaps the most significant change over the past decade has not been the increase in consumption alone, but the changing profile of the Indian wine consumer.
Wine is increasingly becoming part of an urban lifestyle. Consumers are travelling more, dining out more often, discovering new cuisines and developing a greater appreciation for quality. The conversation is gradually shifting from simply drinking wine to choosing better wines.
This is reflected in the growing preference for premium and luxury labels. Consumers are increasingly willing to trade up, choosing quality and experience over quantity.
I have witnessed this changing behaviour firsthand through Wineglitz India. At several of our premium wine dinners, fewer guests have often translated into significantly higher wine sales, simply because participants were willing to spend more on carefully curated wines and memorable experiences. That, to me, is one of the clearest signs of a maturing market.
Opportunities Across the Market
The opportunity is not confined to one segment of the industry.
Retail continues to account for the larger share of wine sales as home consumption grows steadily. At the same time, urban centres such as Delhi NCR continue to drive demand, while western and southern India are emerging as equally important growth markets.
The Indian market also presents an interesting balance between domestic and imported wines. Domestic producers continue to dominate volumes, introducing new consumers to wine through accessible price points. Imported wines, however, occupy a much smaller share by volume while contributing more than half of the market by value. This reflects the increasing demand for premium international wines across hotels, restaurants and discerning consumers.
For international producers, India is becoming an increasingly attractive destination. Australia currently leads imported volumes, while France continues to command the highest value. Italy, too, is steadily strengthening its position as Indian consumers become more familiar with Italian cuisine, regional wines and food pairing culture.
Why I Believe the Best Is Yet to Come
Every growing market encounters challenges, and India is no exception.
High import duties continue to keep many international wines beyond the reach of the average consumer. Yet recent trade agreements have already demonstrated how tariff reductions can stimulate demand, while ongoing negotiations with the European Union and the United Kingdom offer encouraging prospects for the future. At the same time, lighter wine styles such as Prosecco, Rosé and Sauvignon Blanc are finding increasing acceptance, particularly among younger urban consumers.
More importantly, the long-term fundamentals remain firmly in India’s favour.
A vibrant economy, rising disposable incomes, a young working population, changing consumer attitudes, improving quality from both domestic and international producers, growing wine tourism and easier access to wines are together creating an environment that is highly conducive to sustained growth. These are not short-term trends. They are long-term drivers that will continue to shape the Indian wine market for years to come.
- Rising Disposable Income Higher purchasing power is driving demand for premium alcoholic beverages, including wine.
- Urbanisation & Lifestyle Changes Younger urban consumers are increasingly embracing wine as part of social dining.
- Expanding Retail & E-commerce Greater availability through modern retail and online channels is improving access.
- Growth of Hospitality & Tourism Hotels, restaurants and wine-focused experiences are encouraging trial and repeat purchases.
- Premiumisation Consumers are trading up from entry-level products to higher-quality wines.
- Domestic Wine Production Improved quality and wider availability of Indian wines are expanding the consumer base.
- Wine Education & Awareness Tastings, wine clubs and educational programmes are building consumer confidence.
Looking Ahead
Ten years ago, I believed India was entering an exciting phase in its wine journey.
Today, I believe we stand at the beginning of an even bigger story.
The opportunity is no longer measured simply by the number of bottles sold. It is reflected in changing consumer attitudes, growing appreciation for quality, wider availability of wines and a market that continues to evolve year after year.
For domestic producers, importers, retailers, hospitality professionals and international wine companies alike, India is no longer merely a market of future promise. It is a market whose potential is steadily unfolding.
The first chapter of India’s modern wine story has already been written.
The next chapter, I believe, will be even more exciting.
Welcome to what I believe will be a Golden Decade Ahead for India’s Wine Market.
