Wine needs more than young drinkers to thrive

The general consensus within India’s wine industry is that wine culture is indeed charting a fresh and promising course. With younger consumers increasingly gravitating towards loweralcohol beverages that offer a more immersive and sophisticated experience, wine is gaining traction like never before. Producers and importers alike are optimistic about the steady upward trajectory. Yet, as Vicky Chand, Director at Radiant Manufacturers Pvt. Ltd., points out, inconsistent state-level policies continue to hinder progress, often undermining the very efforts made to promote wine as a mainstream choice.

India’s wine culture is steadily expanding, with regional wines now moving beyond the established hubs of Nashik and Karnataka. For instance, kiwi wine is produced in Arunachal Pradesh, while mead-based heritage wines are gaining popularity in Nagaland. Even Bhutan is contributing to the region’s wine landscape with an eclectic mix of offerings. Wine tourism, festivals, exhibitions, bars, and educational institutions are playing a crucial role in nurturing this culture and building brand awareness. “More, of course, can be done, particularly in terms of improving the availability of wines through regular retail outlets and stores. Additionally, state policies across India should support free trade, and efforts to promote exports would also be beneficial,” opines Vicky Chand, Director at Radiant Manufacturers Pvt. Ltd.

Youth-Driven Innovation

With younger consumers, who make up a large share of wine drinkers, keen to experiment with different flavours and brands, innovation has become essential. Radiant Manufacturers, for example, has introduced canned wines, fruit wines, and meads.

“Young millennials are willing to try new things, and their preference is clearly for high-quality products,” Vicky says. In this context, keeping wines cost-effective is just as important, particularly given rising input costs for grapes, glass, logistics, marketing, and promotions. “We must also support the bottom line. Farmers and growers must benefit. We are lucky to have lower excise duties on wine in comparison to IMFL and beer,” he adds.

Emphasis on Quality

With the India-Australia FTA now in effect and a trade agreement with the EU on the horizon, the Indian market is likely to see a rise in imported wines. Local producers will therefore have to navigate a more competitive landscape.

According to Vicky, the most effective way to compete is by focusing on quality because quality ultimately sets a product apart in any market. “We need to prove our quality to Indian as well as overseas ’consumers. Fortunately, we have a new wave of high-end brand creators in India that are creating exciting brands,” he notes.

Government support in the form of subsidies and tax rebates would be beneficial. A more conducive environment for doing business would also help. “Especially like it is in the EU, where wine and beer are available in all restaurants and retail outlets,” Vicky points out.

In a culture still largely dominated by cocktails, wine faces an uphill journey to become mainstream. However, as Vicky and other wine producers and importers suggest, with adequate government backing, the industry can look forward to a vibrant future. Innovative offerings like fruit and canned wines are already paving the way for new consumer engagement channels.