The Indian domestic wine market is to double in size in the next two years, according to research.
Current consumption of 5m litres is expected to grow 25% in the next two years, to reach 9m by 2010.
The figures come from the Associated Chambers of Commerce and Industry of India (Assocham).
Reduced duties and eased restrictions on the distribution of wine to deter consumption of stronger alcoholic drinks, has helped the industry's significant growth.
Assocham also cites a rise in disposable incomes, and western influence on lifestyle among younger drinkers, as contributing factors.
Wine consumption still lies some way behind other alcoholic beverages. 300m cases of beer and 90m of whisky and other spirits were sold in 2007-08.
France accounts for almost 50% of India's wine imports, and Italy 30%.
Have your say... To post your comment on this story, email us at news@decanter.com, making sure the relevant headline is in the subject field
Why the Indian market?
India: with a GDP growth rate of 9.1% per annum and a population of 1.4 billion, is the market of the moment for all sectors and industries. The globe's largest democracy, with 70% of its population under the age of 35, is slated to overtake China to become the world's most populated country over the next 25 years. Over the past few years, India has seen a significant change in lifestyles, attitudes and also, consumption patterns. With increased purchasing power and credit allowances, more Indians are now leading comfort-laden lives, something that was normally considered a Western luxury. The phenomenon of reverse brain-drain – wherein highly-educated Indians who had left the country to pursue careers in the US or Europe return to their mother land – sees inward immigrations reach a healthy and increasing number every year. This recent influx has one important consequence: creation of a consumer market with a desire to continue leading a similar Western lifestyle and consume the same products as they did abroad. Thence, wine…
The wine industry in India last year amounted to sales of 900,000 cases, 170,000 of which were imported. With annual growth rate at a steady 30% over the past couple of years, sales should break the 1 million cases mark by late 2008. A relatively small market compared to many other countries but still, considering the overall and urban population, this is one wine market which presents amazing potential to producers at every level.
With other markets in Asia also presenting interesting opportunities to wineries looking at extending their sales abroad, India does however have one particularity which stands out from other countries: its people. With English being spoken by a large percentage of the population, one of the highest levels of education in developing countries, and a capacity to assimilate cultures and foreign influences whilst retaining that distinct "Indianness", the awareness for quality products is on the rise. Previously only known for its whisky consumption, India, over the past few years, has seen the number of wine drinkers grow exponentially with a forecasted wine-drinking population exceeding 30 million. No longer limited to the major cities such as Mumbai and Delhi (which collectively account for over half the wine consumed in the country) it is expected that rural consumption will eventually account for 75% percent of the market. This is a sign of things to come, which also highlights the importance of having a structured approach to the entire exercise of introducing wines in the Indian Diaspora.
Wineries entering the market should be fully aware not only of the gains to be had, but also of the potential pitfalls. Touching down in a new market requires thorough observation, analysis and evaluation, not only of the market potential but also of one's own capacities to fulfil those needs. Given such a complex and alien environment, Wi-Not, India's first professional wine and beverage solutions set-up, offers wineries assistance in this regard, guiding and leading them all the way
Gurjit Singh Barry, Sommelier & Wine Educator
Register on decanter.com absolutely free for news alerts delivered direct to your email inbox, and our fortnightly newsletter with advance notice of what’s coming up in Decanter magazine, offers, competitions and more.
PLUS registration is a one-stop shop for the Decanter magazine Archive and Decanter Fine Wine Tracker.
Why the Indian market?
