The wine market of India observed growth with a CAGR of more than 25% in past five years: Actual Market Research

It is not about the colour of traditional Indian red wines, it’s more of increasing popularity of white, sparkling, rose and other wines into the Indian market. The Indian consumers have stared exploring other variants of wines from just red wines.

According to report ‘India Wine Market Outlook, 2023’ published by Actual Market Research, the consumption of Wine in India is found to be increasing with rise of awareness of wine as a good drink for health. The wine market of India observed growth with a CAGR of more than 25% in past five years. Growing popularity of Vineyards as tourism places, higher disposable incomes and growth in foreign tourists, promotion of wine as beneficial to health etc. are some of the reasons for such growth. Global travel and expose to other countries where drinking wine is a part of the lifestyle are also helping to drive the sales of wine in India. One of the major obstacles in growth of wine market is the price of wine which is comparatively very high than other alcoholic beverages and India being a price sensitive country people generally don’t prefer consuming wine. Despite the number of Indian wine makers is on the rise, the consumption of imported wine is high in India.

Wine is considered as a very young category in India, but its strong performances and high potentials are leading to the entry of several new players, while at the same time existing companies are expanding their product portfolios and presence in various regions of Indian marker. Sula Vineyards is considered to be the market leader in the Indian wine market followed by Grover Zampa Vineyards, Fratelli Wines Pvt Ltd, John Distilleries Private Limited and others.

The wines in the Indian market are generally segmented as Red wine, White wine, Sparkling wine, Rose wine, and other wines. Red wines are the most popular and most consumed wine having a large market share. While white, rose and sparkling wine are emerging segments. With increasing variants and new brands, these segments are forecasted to grow higher compared to the red wine segment and obtain a higher market share in the future. Which will reduce the dominance of red wine in the Indian wine market.