As global wine demand cools, India uncorks a fresh boom in premium bottles

With overseas travel, rising disposable incomes and a young urban crowd experimenting and trading up, India's wine market is growing even as traditional markets see consumption fall

India’s wine story is becoming a bright spot globally. While traditional wine-drinking countries are seeing flat or falling consumption, India is steadily moving in the opposite direction, with more people experimenting and trading up to better wines. Industry leaders say this shift is being driven by three things: overseas travel, rising disposable incomes and a young urban crowd embracing wine.

 

What do global trends show on wine consumption? 

 

As per an IWSR survey in 2024, wine consumption has declined for decades in traditional European markets, and the countries that once offset this fall, the UK, US, northern Europe, Japan, China and Australia, have also begun to shrink over the past decade. UK per-capita intake peaked in 2009 and is 14 per cent below 2000 levels. The US peaked in 2017, while Australia peaked in 2012 and drinks 11 per cent less wine per adult than in 2000. 

What is the outlook for India’s wine industry in FY26? 

India’s wine industry is expected to rebound in the current fiscal after facing setbacks in 2024-25, when urban consumption slowed and growth temporarily paused, according to Sula Vineyards’ annual report.

 

“After three years of strong growth, FY25 was more a year of demand reset for the Indian wine industry,” said Sula Vineyards founder and chief executive officer Rajeev Samant. “But the good news is that these setbacks are now behind us as we look forward to a more normalised domestic macro environment going into FY26.”

 

How fast is India’s wine market growing? 

India’s wine market was valued at $195.3 million in 2023. According to the Indian Grape Processing Board, wine consumption in the country has grown at a compound annual growth rate (CAGR) of 25 per cent over the past decade. Looking ahead, the market is expected to expand at a CAGR of about 17 per cent between 2024 and 2032.

 

What is driving premiumisation in Indian wines? 

“Consumer awareness has gone up significantly,” says Sumit Jaiswal, chief operating officer, Grover Vineyards. “Nearly 30 million Indians travelled abroad last year, many to Europe. They return seeking the same quality and diversity in India.” The trend is visible not only in metros but also in Tier II cities, where wine is making its way into social occasions, dining culture and home entertainment.

 

The change is most evident in the premium segment. Grover Zampa, for instance, has launched nine super-premium labels since 2019, including Essence Cabernet priced at Rs 5,000 and a new range of unfiltered wines aged in Italian clay amphoras and concrete tanks.

 

How are brands and hospitality shaping consumption? 

Contrary to global stagnation, Fratelli Vineyards said growth in India is being driven by a more aspirational and informed consumer base. “Restaurants and hotels have also played an important role by introducing curated wine lists and pairings, which make the category easier to understand and engage with. The increase in home entertaining after the pandemic has further encouraged people to experiment and open better bottles at home. Together these shifts have created a steady and meaningful growth of wine consumption in India.”

 

Fratelli Vineyards has seen “roughly 18 per cent growth” in its luxury portfolio, including Sette and J’NOON. “There is a clear shift to premiumisation,” says Aditya Brij Sekhri, director, Fratelli. “Younger Indians travelling abroad are discovering the ‘wine life’.”

 

Are white and rosé wines gaining share in India? 

Whites and rosés, long overshadowed by India’s red-heavy palate, are also finding favour. Historically, more than 70 per cent of all wine sold in India was red; that share has now slipped into the 60s, according to Grover’s internal estimates. White wine consumption has grown by five to seven percentage points over the past few years. Warmer weather, lighter food preferences and the rise of brunch culture have helped.

 

What are companies planning next in India’s wine market? 

On growth ahead, industry leaders remain bullish. Grover plans to expand capacity, upgrade its Nashik hospitality centre and scale its ready-to-drink (RTD) portfolio across India. The company expects to grow from 180,000 cases to 240,000 cases by 2027. “The potential is enormous,” says Jaiswal. “We have not even scratched the surface.”

 

Fratelli plans 15-20 per cent annual top-line growth, expansion into new geographies, a luxury wine-tourism project and deeper innovation in premium wines and sparkling formats.

 

“The Indian wine industry is yet to evolve into a discerning market driven by consumer taste preferences. Wine is a complex product, and therefore, consumer education remains a key challenge. Future free trade agreements may also open up cross-border trade, making good-quality wines both affordable and accessible.”