India’s wine industry is rapidly growing and is set to more than double in size by 2028, driven by a 20% annual growth rate, according to a report by Prowess Group. The industry is currently valued at around ₹1,400 crore ($175 million) and is expected to reach ₹3,500 crore ($440 million) by the end of the decade.
While major wine markets like France and Italy have been in long-term decline, and the U.S. is seeing a downturn, countries in Asia, including India, are experiencing increasing demand for wine. The 2024 report highlights that India, with its rising middle class and growing wine culture, is one of the fastest-growing segments in the global alcoholic beverage market.
India currently accounts for less than 0.1% of global wine exports, but this share is expected to grow as Indian wine brands, particularly premium labels, gain international recognition. At present, only 2-3% of the wine produced in India is exported, primarily to European markets, with smaller amounts going to countries like Japan, the U.S., and the UAE.
The report notes that Maharashtra leads India’s wine production, contributing 85-90% of the country’s output. Key regions like Nashik are home to over 70 wineries and cover around 9,000 acres of wine grape cultivation. Karnataka contributes around 6-7% of production, with other wine-growing states including Himachal Pradesh, Telangana, Tamil Nadu, and Mizoram.
Urban areas, especially cities like Mumbai, Delhi, Bangalore, and Hyderabad, dominate wine consumption in India. About 65% of Indian wine drinkers are from urban areas, including smaller cities (tier II and III).
Several factors are fueling this growth, including supportive government policies and the rise of wine tourism in places like Nashik, Bengaluru, and Pune. According to Rohit Bahadur, CEO of Prowess Group, harmonizing wine policies across states will be crucial to support both domestic and foreign wine producers.
In terms of market share, the industry is led by large players like Sula Vineyards, Fratelli Wines, and Grover Zampa. Sula is the dominant player with around 60% market share, followed by Fratelli (25-30%) and Grover Zampa (7%).
Wine tourism is also becoming a significant growth driver for these companies. Sula Vineyards, for example, saw a 10% year-on-year increase in wine tourism revenue in Q2 FY25, and plans to expand its facilities in Nashik and Karnataka. Fratelli Vineyards is also investing in wine tourism, with plans for a new 40-room resort in Maharashtra and an “ultra-luxury” property set to open in 2025.
Overall, while wine tourism currently represents just 4-5% of the market, it’s expected to grow rapidly at a rate of 25-30% annually, further fueling the industry’s expansion in India.
