As India’s wine market continues to expand, imported labels are rapidly gaining ground in terms of popularity and sales. With a market estimated at US$238 million (HK$1.85 billion), India Wine Insider reports that while domestic wines still dominate, imported varieties now account for 33% of total wine consumption. The growing shift toward international labels is particularly evident in major urban centers like Mumbai, Delhi, Bengaluru, Pune, Chandigarh, and Hyderabad.
Shifting Preferences Towards Imported Wines
Indian consumers typically begin their wine journey with domestic brands, due to their wider availability and affordability. However, as palates mature, many urban drinkers turn to imported wines to explore diverse styles, varieties, and regions. Imported wines are often associated with superior quality, making them popular choices for gifting, and appealing to higher-income individuals willing to pay a premium for a refined wine experience.
Australia Leads the Charge in Wine Imports
Among international wine producers, Australia stands out as the dominant source of wine imports to India, contributing nearly 46% of still wine sales. Australian wines, known for their bold, fruit-forward flavors, resonate with Indian tastes and pair well with local cuisine. Their easy-to-pronounce names further enhance their appeal and recall value among Indian consumers.
Australian wines in the under-US$15 price range have long been led by the popular Jacob’s Creek brand. However, in 2024, French multinational Pernod Ricard sold the brand to Australian Wine Holdco Limited, which may lead to reduced availability, opening the door for other international brands to fill the void at the lower end of the market.
In the mid-to-premium price category, Australian wines have also benefitted from India’s Economic Cooperation and Trade Agreement (ECTA) with Australia, which has significantly reduced the import duty on wines above US$15 CIF. The duty, which stood at 150%, will gradually drop to 25% over the next decade, making higher-end Australian wines more affordable for Indian consumers.
Other Popular Wine Regions in India
Beyond Australia, Italian wines are growing in popularity, largely due to the widespread appreciation of Italian cuisine. Italian wines, such as those from the Sensi brand, have gained traction in the Indian market for their easy-drinking qualities and approachable taste profiles. Consumers also find Italian wine names easier to pronounce compared to their French counterparts, further enhancing their appeal.
French wines, though still regarded as a benchmark for quality, have a smaller footprint in India, with regional varieties from Languedoc and Southern Rhône gaining traction. For example, the Le Grand Noir label offers a balanced, casual drinking experience that has resonated with Indian consumers.
Meanwhile, Californian wines are also growing in demand, fueled by the increasing number of Indians traveling to the United States and seeking familiar brands upon their return. However, U.S. wines face challenges in terms of availability and representation in the Indian market.
Red Wines Dominate Indian Consumption
Red wines, which make up 65% of total wine consumption in India, remain the most popular choice among Indian consumers. The perceived health benefits of red wine, along with its compatibility with rich Indian food, contribute to its widespread appeal. Domestic red wine varieties, such as Shiraz and Cabernet Sauvignon, are favored by Indian drinkers, many of whom prefer imported reds made from familiar grape varieties.
Malbec, in particular, has found a niche in India due to its food-friendly profile, while Pinot Grigio, Sauvignon Blanc, and Chardonnay are popular white wine choices for their refreshing characteristics and ability to complement Indian flavors.
Rosé Wines and the Wedding Market: Emerging Trends
In recent years, rosé wines have seen a sharp rise in popularity, making them the fastest-growing wine category in India. International rosé brands outperform their domestic counterparts, and the drink’s sophisticated appeal, especially among women, has helped fuel this growth. As women now account for half of all wine consumption in India, their influence is becoming a significant driver of the wine market.
Additionally, the Indian wedding industry presents a lucrative opportunity for imported wines. With an expected INR1 trillion (HK$9.1 trillion) in wedding-related spending, super-premium wines, including Bordeaux, Super Tuscans, and California wines, are gaining traction at high-profile weddings, where expensive Champagne is often part of the celebration.
Looking Ahead: The Future of Imported Wines in India
The outlook for imported wines in India is promising. As the country’s GDP approaches US$4 trillion and is projected to reach US$10 trillion by 2032, discretionary spending on luxury goods, including wine, is set to increase. This economic growth, particularly in metropolitan areas, will fuel demand for imported wines, which continue to hold aspirational value among Indian consumers.
In conclusion, the Indian wine market is on the cusp of significant transformation, with imported wines poised for continued growth as consumers become more discerning and willing to invest in premium wine experiences.
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