Amid a global supply glut, difficult weather and falling demand worldwide, which has hit a 27-year low (as per a World Spirits Alliance report), Indian wines continue to show signs of resilience and adaptability, with insiders anticipating the market to grow by as much as 10-15% in the next 3-5 years.
At the forefront of this growth momentum is premiumisation and innovation, said experts. For market leader Sula Vineyards, which has a share of more than 50% in domestically produced wines, premium wines now account for almost 80% of its portfolio, up from 65% four years ago, driven by successful launches like The Source, Rasa, and Sula Vineyards Dindori Reserve. “The Source has been one of the most successful wine collections of the last decade, continuing to show robust double-digit growth,” said Rajeev Samant, CEO, Sula Vineyards.
While FY25 has been a challenging year with softer demand, taking a longer-term perspective, Sula Vineyards’ revenues increased at a 14% CAGR over the last three years (FY21 to FY24), from Rs 420 crore to Rs 616 crore. “Looking ahead, we are targeting healthy double-digit growth as wine consumption expands across the country,” added Samant.
Fratelli Wines, the second largest player in the country, expects the industry to grow at 10-15% in the next 3-5 years. “India will see a growth of wine consumption, largely backed by lifestyle changes, Indians travelling abroad and being exposed to wine culture, and the acceptance of wine as a social beverage,” said Jayanth Bharathi, GM, marketing, Fratelli Wines.
Fratelli has been doing well in the last few years, beating industry growth rates. “Our revenue for the current fiscal will be around Rs 200 crore, even with a flat industry, largely due to micro-economic factors. We also recently got listed on BSE, opening up more growth opportunities,” added Bharathi.
While India has primarily been a whisky-consuming market, the landscape is changing today with room for other categories to grow. “Consumers are open to experimenting, and not just sticking to traditional drinking patterns, and this goes beyond whisky,” said Ipsita Das, managing director, Moet Hennessy India.
With its Chandon brand, Moet Hennessy is also seeing a growing appreciation for premium luxury wines in India. “A major trend is the shift toward premiumisation. This is evident across categories, including wines, where consumers are gravitating towards quality over quantity,” said Das.
Incidentally, close to 40% of Moet Hennessy’s India business is driven by wines. This includes its portfolio of champagnes like Dom Perignon, Moet and Chandon, and Veuve Clicquot, wines like Cloudy Bay, Terrazas, Whispering Angel, and its Indian sparkling wine Chandon.
Given the experimental Indian consumer that’s continuously premiumising, Moet Hennessy’s focus for wines has been on innovation and new luxury product launches. It recently launched Chandon Vintage 2015 to mark Chandon’s 10th anniversary in India, crafted from their first-ever harvest at the Nashik winery. “We also launched Chandon Aurva, which is our first still wine, a Shiraz, from the house of Chandon India. In champagnes, we launched Armand de Brignac, which is a luxury champagne, and we see it become a huge hit in Indian weddings and high-energy events,” said Das, adding that, between 2022 and 2023, Moet Hennessy’s wine portfolio saw close to 15% growth in India, against an almost flat growth of the category.
Wine is no longer just about drinking—it’s about learning, experiencing, and appreciating, said Mattia Antonio Cianca, co-founder of Cellar 33, an import-export and marketing agency that curates and promotes an exclusive selection of champagne, wine, and spirits. “Enthusiasm for wine tastings, food pairings, and vineyard visits is increasing, particularly in cities like Mumbai, Delhi, and Bengaluru,” he said.
As per Cianca, Cellar 33 is actively strengthening its presence in India, aligning with the country’s evolving wine culture and the growing demand for premium and artisanal wines. “While some of our producers are set to officially enter the market in 2025, following the positive response at Prowine Mumbai 2024 (annual wine trade fair), we are already seeing strong interest from key industry players,” he said, adding: “Our engagement with top importers and hospitality partners indicates a clear appetite for high-quality, boutique wines. The Indian market is transitioning from mainstream commercial wines to more distinctive, terroir-driven selections, a shift that aligns perfectly with our portfolio.”
As per the ‘What India is Drinking 2024’ annual brand survey undertaken by 30BestBarsIndia, an initiative to rank and celebrate the country’s best bars and bartenders, international still wine entries rose from 101 in 2023 to 135 last year, sparkling wine from 30 to 50, and Indian wine styles expanding from 13 to 18. “These numbers reflect not only the growing penetration of wine brands in the market but also an increasing appetite for experimentation and diversity in wine consumption across demographics,” said Vikram Achanta, founder and CEO of Tulleeho, a beverage education, training and consulting services provider, and co-founder of 30BestBarsIndia.
Indian wines, bracketed under the ‘new world wines’ segment are also growing with laurels, being recognised at prestigious global platforms such as the Decanter World Wine Awards and the International Wine Challenge. “In light of this, several Indian wine labels are now being exported to markets like Singapore, the UK, and the US, solidifying their place in the global wine landscape,” added Achanta.
This comes at a time when the global wine industry is facing several challenges ranging from falling demand to the impact of climate change. According to a report from the World Spirits Alliance released last year, spirits are soon set to overtake wine, in terms of volumes, with a marked shift in drinking preferences. The report, whose predictions came from Oxford Economics and alcohol market research firm IWSR, said 2.67 billion cases of spirits were sold in 2022, almost as many as the 2.8 billion cases of wine sold that year. “Should current trends in both categories continue, spirits volumes will soon surpass those of wine,” it said.
At the same time, climate change has intensified the occurrence of extreme weather events, which have impacted major wine-producing regions across the globe. According to new figures from the International Organisation of Vine and Wine, global wine production was just about 231 million hl in 2024, its lowest level since 1961, after frost, heavy rains and drought ravaged vineyards throughout the year.
The microclimates that wine grapes often grow in are also in danger of disappearing. It is estimated that the production of wine will decrease by more than 80% by the end of this century.