With Rising Disposable Incomes, India’s Affluent Youth Driving Demand For Wines

The Australian Trade and Investment Commission (Austrade), in collaboration with Global Victoria, Investment NSW, and Wine Australia, is showcasing 11 Australian wineries at ProWine Mumbai 2024. In an interview with Bizz Buzz, John Southwell, Senior Trade and Investment Commissioner – South Asia, highlights Austrade’s commitment to leveraging the Australia-India Economic Cooperation and Trade Agreement (ECTA) to expand opportunities for Australian wines in India.

“Our engagement with the Indian wine fraternity spans awareness programs, wine tastings, and collaborations with importers to enhance the category,” Southwell shared. Austrade’s initiatives also include technical cooperation and education programs to boost the Indian wine industry. With Australian wines leading India’s imported wine market, Southwell emphasises their diverse appeal, stating, “Indian consumers can find the perfect match in our wines, paired beautifully with Indian cuisine.”

How do you plan to engage with the wine industry and with the wine trade?

The spirit of cooperation between the two countries- India and Australia drives our desire to work closely with Indian wine fraternity and provide Australia's finest wines to India, promoting economic ties that further unite the two countries. Australian Trade and Investment Commission (Austrade) has been actively engaged with the Indian wine industry, trade and consumers over the last few years to help grow the category. This includes working closely with Indian importers to provide Australia's finest wines to India, driving awareness programs for trade and HoReCa, wine tasting sessions for discerning consumers, and engaging in technical cooperation to promote further growth of the Indian wine industry.

We have also been participating as a country presence in top wine and spirits shows like Prowine Mumbai and Vinexpo alongside our state government colleagues to get Australian wineries to India and interact with the right audience directly. India is a relationship driven market and there is no better way to build those than do it in-person.

What steps are being undertaken to underline your commitment to the Indian wine market?

Australia has been actively engaging with the Indian wine fraternity over the last few years to help grow the over-all wine Industry in India- be it working with importers providing Australia's finest wines to India, driving awareness programs for trade, HoReCa and consumers or engaging in technical cooperation and knowledge exchange to promote further growth of the Indian wine industry. Australian wine maker’s presence at multiple trade events shows their seriousness and commitment to India while learning more about the evolving consumer preferences and the nuances of doing business in India, in general.

As market leaders in the imported wine category in India, we have also partnered with Sonal Holland Wine Academy to run a Retail Staff Education series to enhance wine category education amongst the Indian Wine fraternity and equip Retail store teams with the right knowledge about Australian wines (and wine category) at shop floor.

Through these participations, Austrade aims to enhance the visibility and awareness of Australian premium wines in India, further strengthening the strategic focus on building long-term relationships with the Indian wine community and showing our commitment towards India.

How do you plan to collaborate with the Indian wine industry to build capabilities in the technical, scientific and education sectors to support growth and development of the wine category in India?

Our Industry bodies- Australian Grape and Wine, Wine Australia and the Australian Wine Research Institute have been working closely with the Indian government and wine sector on long-term strategic collaboration. Our winemakers and Industry bodies are cooperating and exchanging views on best practices, technical know-how, challenges and possible solutions through the Australia-India Wine Regulatory Forum.

This partnership is being driven by both our wine industries and will help both countries to capitalize on the growth in wine consumption in India and accelerate it.

How do you build the profile of Australian wine in India with consumers, traders and the Indian government?

Australia has one of the most diverse wine scenes in the world. With more than 100 grape varieties grown across 65 distinctive wine regions, discerning Indian consumers can find a perfect match in the wines crafted by Australia’s innovative winemakers – especially when paired with the diversity of Indian cuisine.

With various programs focussed on multiple segments of Trade, HoReCa and consumer education, we continue to profile the diversity and excellence of Australian wines – both present in market and those seeking an entry. And we’re walking the walk in working with the Indian wine industry to enable growth of the category more generally – a win-win for everybody.

How is Australian wines compare with French, Italian, Spanish and US wines?

Australia has one of the most diverse and unique wine scenes in the world. They stand out for several key reasons from the rest of the world -especially with their wine making techniques, wine styles, experimentation and innovation with a focus on fruit driven expressions. With more than 100 grape varieties grown across 65 distinctive wine regions, Australian wine is an expression of Australia’s unique climates and soils and the passionate communities that cultivate them.

From earthy to elegant, lean to lush, sophisticated reds to fun- fruity whites, wine to impress or something casual for the weekend, discerning Indian consumers can find a perfect match in the wines crafted by Australia’s innovative winemakers – especially when paired with the diversity of Indian cuisine!

How do you plan to expand Australia's market share in the Indian Wine market?

Austrade will continue to drive awareness around Australia’s diverse wine offering and position Australian premium wines as a preferred choice for trade, HoReCa and consumers. Australia is currently the largest exporter of wine to India and AI -ECTA will further assist the accessibility to more premium Australian Wines for Indian audience. Austrade will continue to drive initiatives showcasing the diversity and excellence of Australian wines that are fit for the Indian palate to support the continued development of India’s thriving wine food and wine scene – and the businesses that support them.

As the market matures, innovation, collaboration and advocacy will be of key significance. Australia being the market leader in the imported wine category in India, is highly engaged with the Indian wine fraternity and consumers to drive category awareness, knowledge exchange and help grow the overall category.

What are the challenges in the Indian wine market and what are the prospects?

India’s wine market, though still in a nascent stage compared to traditional wine-drinking countries, is experiencing rapid growth. Over the past decade, wine consumption has increased steadily, especially among the younger, more affluent urban population. With increasing disposable income and a growing interest in international food and beverage trends, Indian consumers are becoming more knowledgeable and adventurous in their wine choices.

Australian wines, renowned for their diversity, quality, and consistency, are well-suited to meet this demand. Varietals like Shiraz, Cabernet Sauvignon, and Chardonnay have already found a niche among Indian wine enthusiasts. Moreover, Australian wine producers are well-positioned to capitalize on the growing trend of wine pairing with local Indian cuisines, offering a unique selling proposition that aligns with the tastes of Indian consumers. This is also a great time for Australian brands as the benefits from the India- Australia Trade Agreement (ECTA) allows a larger selection of premium wines to be more accessible in India.