India is an enigmatic and rapidly changing nation. On the one hand, is a land of opportunity, a country of over one billion people, nearly half a billion above the legal drinking age, boasting a young demographic that’s open to experiment.
On the other hand, India’s AlcoBev industry is shackled by cripplingly high taxes and a dense regulatory system of antiquated laws. In this paradox lies significant future opportunity for the wine industry.
As one of the fastest growing economies in the world, with a GDP expected to grow at over 7% in 2018, India with its thriving middle-class population, the country’s current wine consumption figures serve to illustrate that the wine market is still in its infancy, a fact demonstrated by the lack of knowledge about varietals, wine-growing regions amongst drinkers of both domestic and imported wine.
- The Indian wine market had experienced steady volume growth, but volume has recently declined whilst value has increased, due to a shift towards both imported and higher end domestic wine
- Domestically produced wine has a greater reach in the market, whilst imports are seen as being of a higher quality. Although, this perception is narrowing
- Indian wine drinkers are primarily brand focused buyers, due to a lack of experience with the category
- On- and off-trade channels developing through the opening of more specialised and wine focused retailers, bars and restaurants
- Millennial wine drinkers in India embracing wine, showing willingness to experiment with new and different styles