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Indian wine sector growing at 30%; Could touch 28 ML by 2015: ASSOCHAM
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Monday, 03 March, 2014, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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fiogf49gjkf0d India’s domestic wine market is growing at 30 per cent per annum, and is likely to touch around 28 million litres (ML) from the current estimated level of 21 million litres (ML) by 2015, according to a recent report titled ‘Wine: Bearing Fruit in India’, by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
It added that the largest number of wine consumers are from Mumbai (the national leader, with 32 per cent), New Delhi and Goa (both of which account for about 20 per cent of the total consumption in the country), Bengaluru (18 per cent), Punjab (six per cent) and Pune (four per cent).
”Greater exposure to Western culture, global travel and experience of other countries where drinking wine is part of the lifestyle, also helped to drive the wine sales in India,” the paper, which highlighted the various factors could amount to the increase in wine consumption in India, revealed.
These include a large population under the age of 25 (estimated to be around 800 million, who are likely to witness an attitudinal shift in alcohol consumption and develop a penchant for wine) and rising disposable incomes (which implies that a greater part of the population can afford such products).
The paper stated that the demand for wine was also attributable to the fact that many state governments have reduced duties on wine, eased restrictions on distribution allowing wine to be sold in supermarkets and have provided incentives for wineries to establish new facilities.
“The wine market in India is growing faster than that for any other alcoholic beverage. It is becoming more acceptable among women to drink wine. More women are joining the workforce and are becoming economically independent,” said D S Rawat, secretary general.
Releasing the paper, he stated that approximately 63 per cent of the volume sales of wine were through off-trade channels in five-star hotels, pubs and bar-restaurants. “All companies that are seeking to enter the Indian wine market should be aware of the regional nature of Indian wine consumption,” the association stated.
The soaring popularity of imported brands, which sell at much higher prices than domestic varieties, offers international companies great opportunities for strong value growth. The Indian wine industry should understand that it is the quality, and not the quantity of wine that matters in order to not lose its momentum.
“Going for cheap bulk wine is great for the short-term, but would leads to serious problems in the middle- and long-term. So, growers should concentrate on producing less, but higher-quality grapes. As long as the quality is improved every year, the quantity would take care of itself,” the paper added.
Nashik is one of the most fertile regions for growing wine in the country. Indian companies based outside the city in Maharashtra which have stakes in the wine industry are Grover Vineyards and Four Seasons Wines. Both are based in Karnataka, in southern India.
“Some of the measures recommended for the government to support the wine industry include the creation of infrastructure, protection and subsidisation, reduction in rates, better methods of sales promotion and promotion of classification of Indian wine regions,” the paper said.
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