India’s wine industry is set for a transformative year, with the upcoming 4th edition of ProWine Mumbai spotlighting the country’s evolving market. Scheduled for November 8-9, this event—India’s largest wine and spirits business exhibition—will gather industry leaders to explore the forces shaping this dynamic sector. Ahead of the event, Vino Joy News interviewed Rajeev Naresh, Project Head at Messe Düsseldorf India, who shared insights into key trends and opportunities within India’s fast-evolving wine landscape.
Young Urban Consumers Drive Market Growth
Naresh highlighted a new generation of wine drinkers concentrated in urban centers like Mumbai, Delhi NCR, and Bengaluru, along with emerging markets in Pune, Hyderabad, and Chennai. These areas account for over 70% of India’s wine consumption, with young, middle-class consumers—particularly those aged 25-44—leading the trend. Notably, individuals aged 25-34 make up 45% of the wine-consuming population, reflecting an adventurous approach to wine, influenced by premium social experiences and rising health consciousness.
Indian wine consumption patterns also reflect evolving preferences. Red wines, primarily Shiraz and Cabernet Sauvignon, dominate the market, though white wines such as Sauvignon Blanc and Chenin Blanc are gaining traction, particularly among younger women. Sparkling options like Champagne and Prosecco are increasingly popular for social gatherings and celebrations.
“This younger demographic is shaping the industry with an openness to new flavors and an appreciation for sustainability,” Naresh observed. He noted that Gen Z and millennials’ interest in wine is fostering a shift toward eco-conscious brands and wines that align with a healthier lifestyle.
Australia Takes Lead in Imports, Europe Eyes Expansion
Australia commands 42% of India’s imported wine market, supported by the India-Australia Economic Cooperation and Trade Agreement (AI-ECTA), which lowered import tariffs in December 2022. Italy, Chile, France, and Spain follow, though European brands are eager to increase their presence. Naresh sees high potential for premium European wines, especially those from Italy and France, to appeal to affluent consumers in cities like Mumbai and Delhi.
“Upscale dining in India increasingly features wine-pairing experiences, creating a unique space for European wines,” Naresh explained, highlighting the potential for growth as wine culture expands in India’s hospitality sector. He added that lighter, fruit-forward European wines and sparkling varieties like Italian Prosecco and French rosé appeal to Indian preferences for warm-weather and social-friendly options.
Navigating Regulatory Challenges and Tax Reforms
Regulatory hurdles, particularly high import tariffs, remain significant for European wines entering India. While Australia benefits from a trade agreement, European producers are closely monitoring India’s renewed free trade talks with the EU, hoping for tariff relief similar to the recent Trade and Economic Partnership Agreement with the European Free Trade Association (TEPA).
“Tax reductions are critical for market growth,” Naresh emphasized, noting that lowering import tariffs would make international wines more accessible to India’s price-sensitive consumers. He also pointed to recent regulatory reforms across Indian states, including Assam’s reduced excise duties and Karnataka’s tax adjustments, which are opening pathways for direct-to-consumer sales and expanded retail licenses.
ProWine Mumbai 2024: A Spotlight on Industry Innovation
ProWine Mumbai 2024 will span over 7,000 square meters, featuring more than 170 exhibitors and 10 country pavilions representing over 17 nations. The event will include 12 forums and masterclasses, expected to draw more than 6,000 industry professionals. Highlights include the ProWine Bartender Competition and an awards ceremony celebrating leaders in the wine and spirits industry.
Award-winning wines and spirits from the ProWine & ProSpirits Challenge, judged earlier this year, will be showcased, allowing attendees to sample these leading products at the ProWine Mumbai Night’s award winners’ bar.
As the exhibition unfolds, industry insiders and attendees alike will gain a first-hand look at the innovations and trends propelling India’s wine industry forward. Naresh remains optimistic about the potential for India’s young, trend-driven market to catalyze new growth, making ProWine Mumbai a critical platform for brands eyeing expansion in one of the world’s most promising wine markets.
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