Raising a ‘Young’ toast to Wine

If one were to define the current status of the imported wine market in India, it would be one of cautious optimism, fuelled largely by young consumers for whom wine is an acquired taste, steeped in quality and storytelling. It’s no longer just about price; it’s about the emotion, the lifestyle, and the narrative a bottle brings to the table. And if this sentiment continues to evolve, the imported wine market in India is poised for steady growth, believes Amit Goel, Director, Rad Elan Distributors Pvt. Ltd.

The imported wine market in India is slowly regaining momentum post-pandemic, albeit with structural challenges. Over the past two to three years, there has been moderate growth driven by urban curiosity, premiumisation, and increased exposure through travel and digital platforms. Industry studies indicate that young urban professionals in metros like Mumbai, Delhi, and Bengaluru, as well as emerging cities like Pune and Hyderabad, are the key drivers of demand. But there is a flip side to the story too. The growth has not been uniform, owing to inconsistent state policies and high operational costs.

Consumers purchasing wines in the ₹2,000–3,500 range per bottle show the highest volume traction, balancing aspiration with affordability. There is also a growing segment exploring wines priced above ₹4,000, particularly in on-trade environments. Another noticeable shift has emerged. While traditional retail remains dominant, premium wine stores and curated wine events are gaining momentum. This change is driven by evolving consumer tastes, social media influence, and a growing preference for experiential retail formats that enable storytelling around wine.

FTA: A Booster Dose

With the India–Australia FTA already in effect and a trade deal with the EU on the horizon, wine importers are reassessing and expanding their portfolios to include newer labels and regions. 
“The Australia–India ECTA has prompted us to rework pricing strategies and increase listings from Australian wineries. As the EU deal progresses, we are actively scouting for boutique and value-driven producers from France, Italy, and Spain,” says Amit.

While immediate price correction remains limited due to state-level taxes, importers expect broader availability and greater consumer access in the long term.

Regulatory Hurdles

Wine importers unanimously agree that current policies are fragmented and often act as deterrents. Each state has its own excise structure and timeline for label registration, creating logistical and financial uncertainty. “High duties and procedural bottlenecks reduce the competitiveness of imported wines. A more unified and rationalised framework would benefit the entire industry,” Amit states.

While industry associations and some progressive importers are in ongoing discussions with policymakers, the pace of reform remains slow. Ideally, wine importers advocate for reduced import duties, centralised digital label registration, and a harmonised excise structure across states. Recognising wine as distinct from hard spirits in policymaking would also help make it more accessible and mainstream, they point out.

Beyond Imports

Relying solely on wine imports is becoming increasingly unsustainable. Survival increasingly depends on diversification; whether through spirits, D2C platforms, experiential events, or domestic collaborations. Building a strong brand narrative and fostering community engagement are essential for sustaining and growing in today’s competitive and highly regulated environment.

Modern Wine Playbook 

Despite the challenges, the emergence of D2C platforms and modern trade channels has allowed wine importers to diversify beyond traditional wholesale models. “In states where D2C is permitted, we have seen significant success in engaging directly with niche, informed consumers. Premium outlets also help position our wines as lifestyle choices rather than just alcoholic beverages,” Amit elaborates.

Among current trends, there is a noticeable rise in interest in rosés, sparkling wines, and lighter varietals such as Pinot Noir and Sauvignon Blanc. Sustainability and clean-label wines are also gaining traction, especially among younger, environmentally conscious buyers. Lower-alcohol and organic wines are increasingly sought after for lifestyle and wellness reasons. As mentioned earlier, young consumers are driving these choices. “The younger generation are the future consumers of India, and spirits companies are investing heavily to engage them,” Amit observes.

Reiterating that the wine industry cannot afford to overlook Gen Z and millennials, spirits brands are actively building relevance through digital storytelling, influencer campaigns, and experiential activations. Wine importers must adopt similar strategies—simplifying communication, embracing social platforms, and demystifying wine—to avoid being side-lined in a cocktail-dominant culture. Wine needs to develop its own milieu and identity, and importers are working to build this, confident their efforts align with young consumers’ evolving tastes.