India is making notable advancements in the global wine market, especially with its fruit-based wines, which are starting to establish a niche alongside traditional grape varieties. With domestic wine consumption remaining relatively stagnant, Indian exporters are increasingly setting their sights on international markets for growth. In the first seven months of the current financial year, wine exports hit a record $6.7 million, more than doubling the value from the same period last year. This trend underscores a growing acceptance of non-grape wines abroad, highlighted by a recent milestone with the export of jamun-based wine.
Record Exports and New Milestones
India’s wine exports reached new heights, totaling $6.7 million in just the first seven months of the financial year. This figure reflects a significant increase compared to the previous year, as noted by GTRI. While grape wines remain dominant, led by major producers like Sula Vineyards, there is a noticeable rise in the acceptance of non-grape wines globally. A landmark event occurred recently when 800 cases of Curry Favour, a wine made from jamun, were dispatched from Mumbai. This shipment marks the first export of an Indian jamun-based wine, produced at Seven Peaks Winery in Nashik, and is set to debut in select restaurants in New York and New Jersey, showcasing India’s diverse offerings in the wine sector.
Competitive Pricing and Market Expansion
To effectively penetrate international markets, Indian wine producers are adopting competitive pricing strategies, especially given high import duties in the United States. Ajoy Shaw, a consultant involved in the jamun wine project, emphasized the necessity of maintaining attractive pricing to ensure benefits for both exporters and importers. Indian wines, whether grape or fruit-based, are increasingly being spotted on shelves and menus in numerous countries, including the UAE, the Netherlands, China, France, and the UK. Export sales from April to October this financial year have already exceeded $5.8 million, surpassing the estimated total for the entire fiscal year of 2024-25. This growth is supported by a small yet varied selection of non-grape wines, including those derived from Alphonso mangoes and Kashmiri apples.
Challenges for Fruit-Based Wine Producers
Despite the encouraging export figures, producers of fruit-based and heritage wines in India encounter several challenges. Entrepreneurs, particularly from the Northeast, have tried to access global markets but often struggle to establish a solid foothold. For example, Naara Aaba, a kiwi wine from Arunachal Pradesh, was showcased in China and Greece but failed to achieve long-term export success. Similarly, Akash Gogoi, who produces the traditional rice wine Xaj in Assam, indicated that past export attempts to Singapore did not yield positive outcomes. He stressed the necessity for government support, such as subsidies, for Indian wine producers to remain competitive on the international stage.
The Future of Indian Wine
The Indian wine industry is relatively young, having evolved over the past three decades. While the local market has expanded, growth has frequently been propelled by imported wines rather than domestic brands. According to Euromonitor International, the Indian wine market is projected to grow from approximately Rs 4,770 crore in 2023 to Rs 5,630 crore by 2025. Neeraj Agarwal, a viticulturist associated with the jamun wine initiative, believes there is substantial potential for growth in this category. He noted that tourists are keen to explore new flavors, and there is a rising demand for Indian wines, particularly in markets like the UAE. However, sustaining domestic demand remains an ongoing challenge, highlighted by struggles faced by brands like Reserva Jamun, which saw a surge in popularity during the pandemic but could not maintain long-term success in India.
Digihunt is not a financial advisor and this is not investment advice.