Imported Wine needs a youth-centric reset

The younger generation is undoubtedly the future of wine consumption in India. While the industry unanimously acknowledges this shift, the general feeling is that there has to be increased spending on engaging the younger consumers and attracting them towards wine through experiential marketing, better packaging, engaging storytelling and educational events. As Kunal Patel, Managing Director of Monika Alcobev Ltd., puts it, there is an urgent need for the wine segment to evolve to stay relevant.

The imported wine market in India has seen steady growth over the past few years, though it is not without its challenges. Post-pandemic, there has been a clear bounce-back led by urban consumers who are increasingly open to exploring international wines. Growth has been driven by premiumisation. Consumers are opting for better wines, not just more of them. Rising disposable incomes, global exposure through travel, and a flourishing food-and-beverage culture have all contributed to this trend. “The primary demand comes from metro cities like Bengaluru, Mumbai, Delhi-NCR, Pune, and Hyderabad, with Tier 2 cities like Chandigarh, Goa, and Jaipur gradually catching up,” says Kunal.

The biggest consumers are affluent millennials, corporate professionals, high-net-worth individuals (HNIs), and an increasing number of women. In terms of price bands, the sweet spot continues to be the ₹1,500 - 3,500 retail bracket, particularly for new world wines. Ultra-premium wines priced upwards of ₹5,000 have carved a steady niche, primarily in luxury hotels, private clubs, and highend retail outlets. Moreover, the growth of premium retail outlets like G-Town Wines, Dewars Wine Store, Discovery Wines and other specialised wine stores has enabled brands to present wines in a much better environment, complete with tasting sessions and consumer education.

Policy Bottlenecks Persists

With the India-Australia Free Trade Agreement (FTA) already in effect, the upcoming EU deal is expected to create similar opportunities for European wines, especially those from France, Italy, and Spain. “Over the next 12-18 months, we do expect better pricing for consumers, greater variety, and an overall healthier competitive landscape for premium wines,” opines Kunal.

However, central and state-level regulations remain the most significant hurdle. Each state operates almost like a separate country, with distinct excise structures, label registration processes and timelines.

“High import duties, combined with complex local taxes, severely restrict affordability and availability,” Kunal points out. The absence of policy uniformity means longer lead times focused on compliance, rather than on expanding the category. To be able to overcome the hurdles, industry bodies are engaged in ongoing discussions with government stakeholders, but progress has been slow. “What we would ideally like to see is rationalised customs and excise duties. If the government is serious about promoting wine culture and agritourism, these changes are crucial,” Kunal says.

The Market Evolution

The past few years have witnessed a notable shift in sales channels. Retail premiumisation, increased hotel and restaurant-driven consumption, and the growth of modern trade formats have transformed the way wine is sold. The temporary legalisation of e-commerce sales in select states during the pandemic created demand, although a consistent legal framework is still restrictive in many regions. 

Meanwhile, emerging consumer trends have also reshaped the market. “Consumers today are far more experimental,” says Kunal. There is growing interest in sustainable and organic wines, low- and zero-alcohol options, sparkling wines and rosés, particularly in metropolitan areas. Wines from less traditional regions such as Argentina, Chile and South Africa are also gaining popularity, broadening the palate of Indian consumers beyond France and Italy.

Call for Evolvement

The next generation of consumers is more informed, and their purchasing decisions are increasingly influenced by both the experience and the story behind the bottle. “The younger generation are the future consumers of India,” Kunal notes. However, while the alcohol beverage industry spends significantly on engaging younger audiences for beer, RTDs, and spirits, the wine industry has yet to catch up.

To remain relevant, the sector must adapt through better packaging, more accessible formats, and experiential marketing. Whether it’s wine in cans, affordable tasting events, or a stronger digital presence, the category needs to evolve. Most importantly, wine education will play a pivotal role in simplifying the category, breaking down barriers of intimidation, and helping younger consumers understand and appreciate wine.