Why India Still Isn’t Drinking Enough Wine

India’s wine industry is struggling to convert promise into sustained growth. On a recent earnings call, Sula Vineyards CEO Rajeev Samant acknowledged flat revenues, a pattern that has held for several years. Other domestic players show similar volatility. Grover Zampa, the country’s third-largest wine company, has seen revenues swing sharply over the past three financial years, underscoring the fragility of the category.

This stagnation persists despite the broader wine market expanding in value, from ₹4,770 crore in 2023 to an estimated ₹5,630 crore in 2025, according to Euromonitor International. However, much of that growth has been driven by imported labels rather than Indian producers. Global brands such as Jacob’s Creek continue to dominate shelves, while some domestic wineries have struggled to build scale and habitual consumption.

A core issue lies at the point of purchase. Wine remains confusing for many Indian consumers, who often lack clarity on brands, styles and taste profiles. Retail environments rarely encourage browsing or discovery, with most alcohol purchases designed for speed rather than guidance. Combined with prices approaching ₹1,000 per bottle, this makes wine a difficult proposition for buyers unfamiliar with the category. Storage challenges and poor inventory turnover further weaken the experience, sometimes affecting wine quality itself.

Consumer behaviour also works against wine. Drinking in India is typically pre-meal and oriented around spirits or beer, while wine is seen as an occasional, food-paired indulgence. Younger consumers tend to enter the alcohol category through beer or hard spirits, only encountering wine later, if at all. Even in restaurants, wine is more likely to be ordered for celebrations rather than as a default choice.

For producers, this has meant looking beyond bottle sales for growth. Sula, for instance, is increasingly banking on wine tourism, which has delivered consistent gains even as core revenues remain flat. Policy changes, such as Maharashtra allowing supermarkets and wine-only stores to sell wine at low licence fees, offer some encouragement. Still, with India’s wine market a fraction of China’s and consumption starting from a very low base, industry leaders agree progress will be incremental rather than explosive. Wine in India may grow, but it is unlikely to become a mass habit anytime soon.