Amid a global supply glut, difficult weather and falling demand worldwide, which has hit a 27-year low (as per a World Spirits Alliance report), Indian wines continue to show signs of resilience and adaptability, with insiders anticipating the market to grow by as much as 10-15% in the next 3-5 years.
At the forefront of this growth momentum is premiumisation and innovation, said experts. For market leader Sula Vineyards, which has a share of more than 50% in domestically produced wines, premium wines now account for almost 80% of its portfolio, up from 65% four years ago, driven by successful launches like The Source, Rasa, and Sula Vineyards Dindori Reserve. “The Source has been one of the most successful wine collections of the last decade, continuing to show robust double-digit growth,” said Rajeev Samant, CEO, Sula Vineyards.
While FY25 has been a challenging year with softer demand, taking a longer-term perspective, Sula Vineyards’ revenues increased at a 14% CAGR over the last three years (FY21 to FY24), from Rs 420 crore to Rs 616 crore. “Looking ahead, we are targeting healthy double-digit growth as wine consumption expands across the country,” added Samant.
Fratelli Wines, the second largest player in the country, expects the industry to grow at 10-15% in the next 3-5 years. “India will see a growth of wine consumption, largely backed by lifestyle changes, Indians travelling abroad and being exposed to wine culture, and the acceptance of wine as a social beverage,” said Jayanth Bharathi, GM, marketing, Fratelli Wines.
Fratelli has been doing well in the last few years, beating industry growth rates. “Our revenue for the current fiscal will be around Rs 200 crore, even with a flat industry, largely due to micro-economic factors. We also recently got listed on BSE, opening up more growth opportunities,” added Bharathi.
While India has primarily been a whisky-consuming market, the landscape is changing today with room for other categories to grow. “Consumers are open to experimenting, and not just sticking to traditional drinking patterns, and this goes beyond whisky,” said Ipsita Das, managing director, Moet Hennessy India.
With its Chandon brand, Moet Hennessy is also seeing a growing appreciation for premium luxury wines in India. “A major trend is the shift toward premiumisation. This is evident across categories, including wines,
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