India’s wine scene is evolving rapidly, and all eyes are on the 4th edition of ProWine Mumbai, India’s largest business event, as it brings together global wine and spirits experts for an in-depth look at this dynamic market. With the exhibition set for November 8-9, anticipation is building around what lies ahead for India’s wine industry. Ahead of the event, Vino Joy News caught up with Rajeev Naresh, Project Head at Messe Düsseldorf India Pvt. Ltd., to get an insider’s perspective on India’s wine market.
Naresh sheds light on how the market is transforming—driven by a young, adventurous consumer base and a surge in Australian imports—while revealing the unique opportunities that lie ahead for international brands. From key demographics to emerging trends, his insights provide a comprehensive look at the forces shaping India’s wine landscape and what’s set to unfold at ProWine Mumbai 2024.
70% of Wine Consumers are in Metropolitan Areas
According to Naresh, India’s emerging wine market is concentrated in key urban centers like Mumbai, Delhi NCR, and Bengaluru, as well as cities with a high concentration of middle-class and young consumers, such as Pune, Hyderabad, and Chennai. These central cities account for over 70% of India’s wine sales.
Unlike the aging wine consumer base in Western countries, India’s wine drinkers are predominantly between 25-44 years old. Within this group, those aged 25-34 make up 45% of the wine-consuming population, and 35-44-year-olds account for 30%. These consumers are open-minded and willing to try new flavors. Millennials and Gen Z are also showing an increasing interest in wine.
In India, wine is often associated with premium status, targeting mainly the upper-middle and high-income demographics. Executives, business owners, and professionals from fields like IT, finance, and consulting are typical wine consumers. Although men predominantly lead wine consumption, more Indian women, especially younger ones, are embracing wine.
Wine is typically consumed at social gatherings, corporate events, and celebrations in India. Health-conscious consumers also opt for wine, which is seen as a lighter alternative to spirits.
Red wine dominates the Indian market, with Shiraz and Cabernet Sauvignon as the primary varietals. As urban women increasingly consume wine, white wine has also grown in popularity, with Sauvignon Blanc and Chenin Blanc leading. Champagne and Prosecco are also becoming more popular, especially for social and celebratory occasions.
Naresh highlighted the “pivotal” role of millennials and Gen Z on India’s wine market. “Their evolving preferences and purchasing behaviors are driving new trends and influencing how brands approach this segment,” he observed.
This generation enjoys exploring different wines, from crisp whites to bold reds and sparkling wines. Growing awareness of health and sustainability also means that brands promoting eco-friendly practices are increasingly attracting their attention.
Australia Leads With A 42% Market Share
Australian wine dominates the Indian market. According to 2022 data, Australian wine accounts for 42% of India’s imported wine market, followed by Italy (14%), Chile (11%), France (9%), and Spain (6%).
The India-Australia Economic Cooperation and Trade Agreement (AI-ECTA), which took effect in December 2022, further solidified Australia’s position by reducing tariffs.
However, Naresh also sees strong potential for traditional European wines, particularly from Italy and France, to gain market share in India.
“With India’s growing middle class and affluent consumers in cities like Mumbai, Delhi, and Bengaluru, premium and luxury wines from Italy and France can appeal to this demand,” he noted. Meanwhile, wine pairing culture is also gaining traction in upscale Indian dining. “The increasing popularity of wine-pairing in upscale restaurants creates an opportunity for these wines to position themselves alongside gourmet cuisines, both Italian and French,” he said, adding that events and tasting experiences could help capture this affluent audience.
He also pointed out that Indian consumers, particularly in warmer weather, gravitate toward fruit-forward, lighter wines and sparkling varieties like Italian Prosecco and French rosé. “While Australian reds have dominated, there is room for European wines that are better suited to tropical climates and social occasions such as parties and gatherings,” he observed.
Overcoming regulatory and tariff barriers is also crucial. Without a specific tax exemption agreement, European wines, especially from France and Italy, face India’s high import tariffs and complex tax structures, which remain a significant challenge. “Collaborating with experienced local distributors can help navigate these regulatory challenges,” he advised, noting that EU producers should also keep an eye on future trade agreements that could bring tariff relief. Find out India’s top wine importers here.
Tax Cuts Spur Market Growth
India recently renewed its free trade agreement negotiations with the EU in 2022, nine years after talks had stalled. Australia has already reaped the benefits of its free trade agreement, and in March, India signed the Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA), which includes Switzerland, Norway, Iceland, and Liechtenstein (More on India’s wine taxes here).
The industry expert believes tax reductions will be transformative for India’s wine market. “Lowering excise and import tariffs makes imported wine more affordable and accessible to Indian consumers, helping international wineries reach price-sensitive buyers.”
He also highlighted recent regulatory changes across Indian states that are relaxing alcohol laws, allowing for direct-to-consumer sales and expanding retail licenses. For instance, Assam recently lowered alcohol excise duties, and Karnataka reduced excise on select alcohol products, though they also saw temporary increases in 2022 and April 2024.
ProWine Mumbai 2024: Highlights
The exhibition will cover over 7,000 square meters, featuring more than 170 exhibitors, 10 country pavilions, and showcasing wines and spirits from over 17 countries. The event will include 12 forums and masterclasses and is expected to attract over 6,000 industry professionals.
Although judging for the ProWine & ProSpirits Challenge took place earlier this year, award-winning brands will be prominently displayed during the exhibition, and attendees will have the chance to taste these wines and spirits at the ProWine Mumbai Night’s award winners’ bar.
Additionally, this year will see the ProWine Bartender Competition, along with an awards ceremony honoring outstanding individuals in the wine and spirits industry.
Full details of the upcoming fair can be found here.
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