Whalesbook
Indian Wines Making a Global Mark Beyond Grapes
India's wine industry is experiencing a significant shift as fruit-based, non-grape wines increasingly find favor in international markets. This surge in exports is helping Indian winemakers tap new revenue streams amid slower growth in the domestic market. The nation's wine exports reached a record $6.7 million in the first seven months of the current financial year, more than doubling the value recorded during the same period last year. This analysis comes from the trade think tank GTRI.
Financial Implications and Export Surge
While grape-based wines, notably from Nashik's Sula Vineyards, continue to dominate exports, non-grape varieties are carving out a distinct niche. Recent shipments include 800 cases of "Curry Favour," a jamun wine produced at Nashik's Seven Peaks Winery. This marks the first export of jamun wine, destined for select restaurants in New York and New Jersey.
"We had to keep our export pricing competitive due to high duties in the US market. Even so, the arrangement is a win-win for both the importer and us," stated Ajoy Shaw, a consultant involved in the project. This focus on competitive pricing highlights the strategic approach needed to penetrate markets with existing high tariffs.
Reaching International Palates
Made-in-India labels are steadily expanding their presence in diverse international markets, including the United Arab Emirates, the Netherlands, China, France, and the United Kingdom. The export value recorded between April and October of this fiscal year has already surpassed the $5.8 million achieved for the entire 2024–25 fiscal period, indicating a robust growth trajectory.
Beyond jamun wine, other fruit wines like those made from Kashmiri apples and Alphonso mangoes have also seen notable export volumes. Pune-based Rhythm Winery exports its Alphonso mango wine to the UK, and L74 Craft Cider, crafted from Kashmiri apples, is available in specific segments of the British market.
Potential and Challenges Ahead
Neeraj Agarwal, a viticulturist and participant in the jamun wine export venture, believes the category holds substantial potential for expansion. He noted the consistent tourist interest in trying novel flavors and the manifold increase in demand for Indian wines in markets like the UAE. Agarwal previously was associated with Reserva Jamun, a domestic jamun wine brand that gained popularity during the Covid-19 pandemic but struggled for long-term success in India.
Winemaking in India is a relatively recent development, taking root over the past three decades. While the domestic wine category has grown, this expansion has largely been fueled by imported labels, according to previous reports. The overall Indian wine market is projected to grow from an estimated ₹4,770 crore in 2023 to ₹5,630 crore in 2025, according to Euromonitor International.
Despite the positive export trends, challenges persist. Local entrepreneurs, particularly in the Northeast, have faced hurdles in sustaining exports of fruit-based and heritage wines. For instance, Naara Aaba, a kiwi wine from Arunachal Pradesh, was showcased internationally but failed to establish sustained exports. Similarly, an Assam-based entrepreneur producing traditional rice wine Xaj faced difficulties in finalizing export deals.
"Unless the government provides some form of subsidy, we simply cannot remain competitive in international markets," added Akash Gogoi, the Assam-based entrepreneur. This highlights a potential need for policy support to further bolster India's beverage export capabilities.
Impact
This news signifies a positive development for the Indian beverage export sector, showcasing diversification beyond traditional agricultural products. It highlights the potential for niche Indian products to gain global traction, creating opportunities for small and medium enterprises and potentially boosting rural economies if production scales up. The success of non-grape wines could encourage further innovation and investment in India's burgeoning wine industry.
Impact rating: 7/10
Difficult Terms Explained
- Viticulturist: A person who studies or is an expert in the cultivation of grapes and the production of wine.
- Tepid: Showing a little or no enthusiasm. In this context, it refers to slow or unenthusiastic domestic sales growth.
- Consignment: A batch of goods destined for or carried on a ship, aircraft, or vehicle. In this case, a shipment of wine.
- Fiscal Year: A period of 12 months, used for accounting and budgeting purposes, which may not necessarily coincide with the calendar year. India's fiscal year typically runs from April 1 to March 31.