Wine consumption in India to increase 73.5% in 4 years
Gearing up for the 6th edition of Vinexpo in Hong Kong, Vinexpo has released their wine and spirits research compiled by UK based International Wine & Spirit Research. Guillame Deglise, CEO and Director General and Xavier de Eizaguirre, chairman of Vinexpo were in India recently to share the study. The findings of the report were a good indicator as to how consumer behavior is changing and how the business of wines and spirits is evolving accordingly. For instance sparkling wines will see an increase in consumption of 7% by 2017 and USA is the biggest consumer with 336.89 million cases in 2013. The Asian giant, China, is a country to look for who has a seen a growth of 134% between 2008 and 2012.
India, despite the fact that base numbers are always small, has great prospects in wine consumption with 73.5% increase expected in the next 4 years; the actual numbers will only go upto 1.88 million cases. This is based on the fact that between 2012 and 2013 there was an increase of 16.3% in wine consumption. It was interesting to find out that contrary common belief, Indians prefer to drink red wines. More than 61% of the wines drunk in India are red and this segment is expected to grow by 71.6% between 2013 and 2017. And we love Aussie wines as Australia takes its place as biggest wine supplier to India replacing France who now has the number 2 spot. They are closely followed by Italians and Chileans. With an expected growth of 68% in wine consumption in 10 years by the end of 2017, Indian wines have a great potential to grow – in 2013, 0.93 million cases of Indian wines were consumed as opposed to 0.28 million cases of imported wines. Spirits still have an edge over wine and it will continue with 115.22% expected growth in 10 years (2008-2017). India is the 5th biggest market for imported spirits in the Asia Pacific region. Unexpectedly, it was Brandy which took the top slot in preference of spirits in India with 77.12 million cases being consumed in 2013 which is slated to go upto 90.91 million cases in 2017. Brandy is closely followed by Rum, Vodka, Gin and Scotch.
This is good news, and we later asked Deglise how the Indian wine industry can leverage these positive numbers. He said, “It doesn’t matter how big or small the winery may be, but it is important to showcase what kinds of wines that are being produced in India.” He explained that it is important to work with the right partners who can help network with the right people in the global arena. “For Indian wines, the biggest asset is Indian food,” he added and that too needs to be leveraged. As for international wines coming to into India Deglise said that since in most established wine producing regions, consumption locally is declining emerging nations like India are becoming important. “Not just India, any country which has potential for wine sales is being targeted despite the challenges faced locally. US too is a tough market as is China,” he explained.