India Wine Market 2025: Growth Forecast, Consumer Trends, Domestic Production
Posted on 02-June-2025
The India wine market has experienced a steady yet significant transformation over the past decade, fueled by rising urbanization, changing lifestyle preferences, increasing disposable incomes, and evolving consumer palates. From being a niche luxury segment, wine is now becoming a mainstream beverage choice, particularly among urban millennials and Gen Z consumers.
In 2025, India’s wine market is estimated to reach USD 400 million, growing at a CAGR of approximately 8.3% from 2020 to 2025. With policy reforms, domestic wine production expansion, and greater awareness around wine culture, India is emerging as a promising market for local and global wine players.
Market Overview
Market Size and Forecast
• 2020 Market Size: USD 243 million
• 2025 Projected Market Size: USD 400+ million
• CAGR (2020–2025): 8.3%
Key Drivers
• Rising disposable incomes and premiumization
• Urban youth adopting Western lifestyles and wine-drinking habits
• Increasing number of women wine consumers
• Rapid expansion of online and modern retail channels
• Government focus on boosting domestic viticulture
Market Segmentation
• By Product Type: Red Wine (largest), White Wine, Sparkling Wine, Rosé, Fortified Wine
• By Distribution Channel: On-trade (hotels, restaurants, bars), Off-trade (retail, online)
• By Region: Maharashtra, Karnataka, Delhi NCR, Goa, West Bengal
Consumer Insights
Demographic Trends
• Urban Millennials (25–40 years) are the primary growth drivers.
• Women now make up over 30% of the wine-consuming population in metro cities.
• Tier 2 cities such as Pune, Chandigarh, Jaipur, and Indore are witnessing double-digit wine consumption growth.
Behavioral Trends
• Wine is being perceived as a healthier, more sophisticated alternative to spirits and beer.
• Weekend socialization, fine dining, and celebrations are key consumption occasions.
• Growing curiosity around wine education, food pairing, and wine tasting events.
Domestic Production vs Imports
Key Domestic Players
• Sula Vineyards (Market leader with ~65% share)
• Fratelli Wines
• Grover Zampa Vineyards
• York Winery
• Reveilo Wines
Domestic production is centered in Maharashtra (Nashik) and Karnataka, supported by state-level subsidies and tax relaxations. Local wines are increasingly being preferred for their affordability and quality improvements.
Imports
Imported wines account for 15–20% of the Indian wine market. Key exporting countries:
• France
• Italy
• Australia
• Chile
• South Africa
Import duties (~150%) remain a barrier, but trade negotiations under Free Trade Agreements (FTAs) with the EU and Australia could make premium wines more affordable.
Distribution Channels
On-trade
• Major driver of premium wine consumption in urban hubs.
• High growth in organized food service and luxury hotels post-COVID.
Off-trade
• Online wine delivery platforms like Living Liquidz, HipBar, and Wine Park are gaining traction.
• Modern retail formats like Nature’s Basket, Foodhall, and duty-free shops boost accessibility.
Challenges
• High import duties and complex inter-state taxation policies
• Low per capita wine consumption (0.2 liters/year compared to global average of 3 liters)
• Inadequate cold chain infrastructure and storage systems
• Social stigma in rural areas and restrictive advertising laws
Opportunities
• Wine Tourism
Nashik and Karnataka are promoting vineyard tours, boutique wineries, and wine tasting rooms as part of experiential tourism.
• Innovation in Packaging
Emergence of wine in cans, smaller bottle formats (187ml, 375ml), and eco-friendly packaging for casual and on-the-go consumers.
• Wine Education & Experiences
Wine masterclasses, sommeliers, pairing menus, and mobile apps are helping educate new consumers.
• E-commerce & D2C Boom
Relaxation of state excise laws for online liquor delivery is expected to drive massive growth in online wine retail.
India’s wine market is on the brink of a cultural and commercial breakthrough. With favorable demographics, growing health consciousness, and maturing tastes, wine is poised to carve a stronger niche in India’s beverage landscape. However, regulatory reforms, awareness campaigns, and continued investment in domestic production and retail innovation are key to unlocking its full potential.
Read More: India Wine Market Size, Share, Competitive Analysis, Key Players, Growth Drivers, Trends, Opportunities, Revenue Analysis, and Demand Forecast to 2032
