INDIA: Optimism for wine reigns in India, despite barriers - research

By Olly Wehring | 24 April 2012

India could be a major growth market for wine companies. providing they're prepared to jump through several hoops

Wine consumption in India is expected to grow year-on-year and could reach 2.4m nine-litre cases by 2020, according to The IWSR.

In its recently-published India Wine Market Report, The IWSR notes that the wine market in India is currently small, with low per capita consumption compared to beer and spirits. Interest in wine, however, is growing.

“Wine is mainly enjoyed by the small population of travelled Indian businessmen, their foreign guests, tourists, and sometimes up-market women and cosmopolitan affluent youths,” the research organisation says in its report. “Despite the difficulties of matching wine with Indian food, a cult enthusiasm is developing for wine consumption and it has become a more regular offering at launch parties, business receptions and sometimes weddings.”

Hindrances to expansion of the wine market come in the form of a limited number of skilled importers, an underdeveloped infrastructure and retail system, and the costs of taxes and licences.

The market is starting to recover following a dip in 2009 and 2010, and long-term growth is anticipated, although this is dependent on the availability of sufficient good-quality grapes, the IWSR says.

Expert analysis

The IWSR India Wine Market Report

The IWSR India Wine Market Report analyses the structure of consumption by country of origin, colour, format and price point; provides detailed information on the structure of the market, costs and taxes; and assesses the opportunities. The report includes brand sales data for 2006-2011 for still light wine and sparkling wine.

Sectors: Emerging markets – BRIC, Wine