‘India wine consumption may reach 14.7 mn litres by 2012-end’

MUMBAI(Commodity Online) : Wine consumption in India is likely to reach around 14.7 million litres (in volume terms) by the end of 2012 from around 4.6 million litres in 2008 registering a growth of 35 per cent during the course of past 4 years, says an analysis of the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

According to the ASSOCHAM analysis, the Indian wine market (in value terms) stood at Rs. 800 crore as in 2008 is likely to touch Rs. 2700 crore mark by the end of 2012, based on relevant information supplied to the chamber by various wine producers.

In a study on “Emerging Industry trends in Indian Wine Market” carried out by ASSOCHAM under the aegis of ASSOCHAM Social Development Foundation (ASDF), it was observed that cities like Delhi, Mumbai, Chandigarh, Bangalore, Chennai etc. account for majority of wine consumption in India. The chamber feels that as per the emerging trends non-metros and tier I & tier II cities will also form a good portion of wine consumption in India.

Releasing the findings of the ASSOCHAM analysis, Mr. D.S. Rawat, Secretary General, ASSOCHAM said, “If stats are anything to go by, India’s wine industry is bubbling with activity at the moment. The per capita wine consumption in India is going to reach 30 ml from a meagre 9 ml in 2008.”

“Favorable government policies, suitable tax structures, rising disposable income, growth in tourism sector etc. are certain reasons for burgeoning Indian wine market. Besides, rapidly changing lifestyle and drinking habits of people (people from the middle and higher middle class no longer prefer hard drinks) especially, the younger lot are paving the way for growth of wine industry”, added Mr. Rawat.

According to the ASSOCHAM analysis, the wine consumption pattern in India stands at – Mumbai (30 per cent), Delhi (20 per cent), Goa (20 per cent), Bangalore (15 per cent), Punjab (5 per cent) and rest of India accounts for 10 per cent.

An interesting aspect that emerged out of the ASSOCHAM study was that around 65 per cent of the total volume of wine consumed in India is produced locally in states like Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu, Punjab etc. as these regions are booming with a number of wineries.

Although, wine industry in India is looking up but in its interaction with the various wine producers in aforesaid states ASSOCHAM observed that the industry is facing certain grave problems to further develop the domestic wine market. Major wine importers and wine makers in India are awaiting a change in domestic excise policy which will result in cheaper imports and also in easy availability of Indian wines throughout India. Expensive packaging inputs and management of distribution of finished goods are also the concerning areas.

ASSOCHAM believes that wine sector in India has immense growth potential and with proper government support together with guidance, the sector can certainly become hugely lucrative and generate employment avenues as well.

ASSOCHAM suggests organizing series of promotional events, wine tasting sessions etc. at up-market restaurants, star rated hotels etc. to further promote and help figure wine in an average Indian wine aficionado’s priority list.

Of late, India has become a strong contender in the global wine business as wine made in India is vying with the best quality wine producers and consumers.

ASSOCHAM foresees a bright future of Indian wine industry in the global market.