Storytelling, not Scale, will shape India’s Wine future

Importers who chase sheer volume will find the years ahead hard. Growth will come from reading the room, asking younger, curious consumers what they want to drink and how they want to access it; then meeting them with approachable storytelling, innovative packaging and transparent sourcing. If importers make wine fun and keep the jargon parked, the category will write its own next chapter, believe Sumit Sehgal and Ratik Singal, Co-founders of Aristol Cellar LLP.

Steady rather than spectacular. That has been the status of the imported wine segment over the past two to three years. Industry estimates still peg it at around 6 lakh nine-litre cases, roughly 30 percent of India’s total wine consumption. There is a decline year-on-year practically for the last couple of years, especially after the post-pandemic rebound in FY 2022. And here, a few points are driven home: The competitive intensity has spiked, with a wave of new import licences and aggressive ‘introductory’ pricing leading to stock-dumping. As a result, retailers’ pipelines are saturated and reorder cycles have slowed.

From a boutique importer’s perspective, the market feels like it’s in consolidation mode. Until pipeline stocks clear and discretionary spending revives, volumes are expected to remain range-bound. That said, any policy support such as the tariff reductions discussed in recent trade talks, could quickly unlock demand. “Our focus is therefore on disciplined inventory management, targeted consumer education, and staying nimble enough to seize the upswing when it comes,” says Ratik.

Meanwhile, inflation and a stubborn 150 percent basic customs duty have made consumers more price-sensitive. Trade channels naturally prioritise higher-margin SKUs, often at the expense of quality. Regional concentration persists – Delhi-NCR, Mumbai, and Bengaluru still account for the lion’s share, though green shoots are emerging in Tier 2 cities as hotel chains expand outward. Sparkling wine is the standout performer, benefitting from cocktail culture and celebratory occasions.

“Still, wines are struggling. Despite headwinds, labels with clear provenance and narrative have outperformed the broader market, a cue we’ve leaned on at Aristol with houses like Taittinger and Joseph Drouhin,” says Sumit.

Imported Wine Preferences

The centre of gravity is still the big three metros, but who’s walking up to the shelf has changed. In Delhi-NCR, Mumbai, and Bengaluru, the core buyer is now an urban millennial or an early-thirties professional, often fresh off an overseas work trip.

Industry data suggests that 45 percent of India’s wine drinkers now sit in the 25-34 age band, with another 30 percent in the 35-44 bracket. Women already account for a third of that pool, a share that’s rising quickly as social norms soften and disposable incomes climb.

Price remains the initial filter. Roughly twothirds of imported bottles sold at retail scan below ₹1,500. This sub-₹1,500 sweet spot covers after-work curiosity, dinner-party gifting, and first-time experiments. “To tap into this, we lean on lighter, label-friendly, no-jargon styles like our Gatao brand’s off-dry Vinho Verde or fruit-forward rosé that lower the commitment barrier. Yet the profit heartland lies at the other end: travellers who already buy duty-free Bordeaux, Burgundy or Champagne abroad will stretch to ₹5,000-plus in India when provenance and story resonate,” Sumit notes.

Even though brand loyalty remains low, consumers who once asked for “a red” are now requesting specific grape varieties — Malbec, Nero d’Avola, Albariño — suggesting the first steps toward varietal literacy, a motivation for quality importers.

Impact of Trade Policies

The India-Australia ECTA has recently nudged the door open, and companies like Aristol are ready to step through, but with eyes wide open to its limits. In practice, the agreement grants Australian wines duty relief only within a tariff-rate quota and on a sliding scale. While this makes for upbeat headlines, once you add back-label registration fees, state excise, logistics, and rupeedenominated import costs, the shelf price for wines in the sub-₹1,500 volume segment (where two-thirds of imported bottles sell) barely changes.

The real beneficiaries are globally recognised premium labels already commanding ₹5,000-plus. On these, even a 5–10 percent landed-cost saving can be meaningful to the consumer.

“Given the current market consolidation, we have been cautious about adding too many new SKUs. We prefer to be candid with partners about market realities: even with lower duty, brands need patient market-building in a landscape where every new label attracts state-wise approvals that can cost more than the first pallet of wine,” Ratik explains. “We see genuine white space for carefully curated American wines and are actively exploring that opportunity.”

Further, the proposed India-EU FTA could be a louder game-changer. “While we don’t expect an overnight price crash, we do foresee a broader range of premium European wines becoming economically viable to list over the next five years, particularly once freight rates normalise,” says Sumit.

State-Level Challenges

Despite rising consumer interest, central and state policies continue to hinder rather than help India’s wine and spirits industry. “At the Centre, the 150 percent basic customs duty is a known cost. The real drag begins after customs—when the shipment enters a maze of state-level controls,” says Ratik, a wine importer. Each state runs on its own excise calendar, with distinct label approvals and fee structures— often exceeding the value of the first shipment.

“In some states, the label registration window itself can stretch four to five months,” he adds. “During that time, small or midsize importers are left without sellable inventory. That’s not ease of doing business—it’s five months of turnover lost before you can even start.”

Delhi’s rigid excise regime adds to the strain. “Freight, glass, and euro-denominated cellar prices have gone up, but we can’t adjust our prices without restarting the entire approval process,” explains Sumit, another leading importer. “Margins are eroded, and capital is blocked—discouraging innovation.”

Interstate inconsistencies compound the problem. A label valid in Maharashtra may be flagged in Karnataka or priced differently in Goa. “India needs a unified, digital label registry, faster approvals, and transparent pricing protocols,” Sumit urges. “That’s the only way to support a thriving wine culture.”

Call for Reforms

Wine importing in India remains a small, fragmented business and lacks a unified voice. While individual importers meet government agencies, what’s truly needed is collective representation. The first priority, therefore, is self-organisation: a lean, pan-India wine importers’ association could supply data, lobby effectively, and dispel the notion that wine is a niche luxury disconnected from the broader agri-food economy.

There are certain reforms that would unlock growth. These include classifying wine and beer (≤15 percent ABV) under a single national standard, ideally via the FSSAI framework. So label cleared, for example in Delhi, is automatically legal in Bengaluru or Goa. A digital registry with a modest, flat fee would reduce capital lock-ups and let small firms list more varietals.

Secondly, there should be predictable, market-linked pricing. “In Delhi, an importer cannot adjust MRP, even after a sudden currency swing. An annual price-revision window, common in most other consumer sectors, would prevent inflation from eroding margins and discouraging new listings,” Ratik says. Further, time-bound state licensing should be guaranteed with an online 30- day statutory service-level agreement. Wine should be gradually integrated into the GST framework to unlock input credit and create a seamless national market.

Allowing licenced players to sell wine online, subject to robust age-verification, would boost tax collections, broaden consumer choice beyond metro storefronts, and curb the current suitcase-import habit that leaks revenue offshore. “Progress will not come overnight, but a clear commitment to these reforms would signal that India is serious about modernising its alcohol beverage ecosystem and give boutique importers like us the confidence to keep investing, hiring, and educating the next generation of wine drinkers,” Ratik says.

The Survival Game

Can an importing company survive in India by selling wine alone? “It’s tougher now compared to previous years,” says Sumit. “The next few years will remain challenging for wine globally. It is affecting India badly as the volume base is small, and competition is increasing with everyone thinking of India as an opportunity.” 

A wine-only importer can survive, but only if it remains intentionally small, sharply focused, and exceptionally patient. A tightly curated portfolio, premium storytelling, and disciplined inventory is the key. The company must also lean on premium retail and bythe-glass experiences to drive high margin sales. Collaboration for reach also matters with shared events, pooled training, D2C educational content that keep costs low and impact high. A company must keep cash light by importing in micro-lots, using preservation technology, and negotiating flexible credit terms with wineries.

For those with national-scale ambitions, pairing wine with faster-moving segments like spirits is the more sustainable route.

From Tableside to Take-Home

Before the pandemic, restaurants led the charge— new wine labels debuted on menus before hitting retail shelves. Lockdowns reversed the flow. As home consumption soared, premium wine boutiques in cities like Delhi, Mumbai, and Bengaluru became the main drivers, offering broader selections and trusted environments.

Restaurants, however, didn’t vanish—they evolved. “We use by-the-glass pours and Coravin tastings at hotels and pop-ups to offer a taste of high-end Burgundy or Champagne,” says Sumit. “That first sip often leads to a take-home sale and encourages better wine habits at home.”

Today, retail is at the heart of most distribution strategies, especially for premium bottles priced at ₹5,000 and above. Knowledgeable staff and curated displays outshine cluttered shelves. D2C platforms complement retail by educating consumers through tasting notes, videos, and rating tools. Together, retail and D2C convert curiosity into trial, and trial into brand loyalty; each channel amplifying the other’s strengths.

Emerging Trends

Today’s consumers seek affordable and accessible experiences. Those under 35 years of age want wine that complements social, shareable moments, not a masterclass. Playful labels and fruit-forward styles reduce intimidation and spark word-of-mouth. Tastings are shifting from hushed ‘nose-palate-finish’ rituals to rooftop pop-ups, music pairings, and glass flights that feel social first and educational only if you ask.

Volumes are flat because consumers are trading up: fewer glasses, but higher quality and provenance. At the same time, they are open to formats that match their lifestyle. Wine spritzers in slim cans, readyto-serve cocktail pouches, and even picnic-friendly 250 ml bottles will thrive once wine is merchandised alongside mixers in mainstream stores rather than behind a shop counter.

And finally, organic, lowsulphite and sustainably packaged wines are no longer niche talking points; they are checkboxes for a growing slice of metro buyers. Parallel to that, noand low- alcohol SKUs are moving from curiosity to serious consideration as wellness culture gains ground. “We are short-listing a few zero-ABV European cuvées now and so we are ready when duty structures and shelf space catch up,” Ratik shares.

Winning over the Young

The younger generation are the future consumers of India, and the spirits companies are investing heavily to engage them. Spirits marketers have long had the advantage of scale; a handful of global labels dominate volumes, so a big budget translates straight into brand recall. Wine is the opposite. Thousands of SKUs fight for a little attention, and genuine brand loyalty is rare outside, maybe champagne. That makes Gen Z and millennial engagement trickier but not impossible; it simply requires different weapons. “First, expect limited brand stickiness. Younger drinkers latch onto grape styles, regions, or even packaging cues faster than they commit to a wine brand name,” Sumit points out. What resonate are shareable experiences; moments they can post, not memorise.

Second, wine lacks a spirits style budget, so smart collaboration beats brute spending. Importers, ontrades, and preservation-device brands should pool budgets to create discovery trails rather than chasing fragmented ads. Third, trade understanding is the force multiplier. A millennial may forget the label she drank last Saturday, but she will remember the sommelier who framed Albariño as ‘sushi’s beachglass cousin’.

Finally, engagement must feel casual, not didactic. Gen Z resists lectures but welcomes engaging guidance. Entry and mid-tier wines should focus on playful storytelling; complexity can wait. “Wine brands will only hurt if we try to copy spirits’ marketing. Lean into experiences, collaborative marketing, and front-line training, and we will meet the next generation where they actually live—scrolling, sipping, and swapping stories, not brand pledges,” Ratik states.