Rising purchasing power and the increasing impact of westernisation are set to boost the Indian wine sector in the years to come. In its latest report: ‘Country Profile: Wine Sector in India’, GlobalData, a leading data and analytics company, states that the sector was valued at INR61.06 billion (US$908.6 million) in 2016. The market is expected to grow at a value Compound Annual Growth Rate (CAGR) of 19.9% during 2016–2021.
Despite a high CAGR of 23.2% (in volume terms) during 2011-2016, India accounted for only 0.2% share of the global wine sector in 2016. Furthermore, the volume share of the market in the Asia-Pacific (APAC) region is expected to almost double from 1.2% in 2016 to reach 2.3% by 2021, which shows that the wine sector in India is still at a very nascent stage and is growing rapidly.
Kiran Kumar Akkineni, Consumer Analyst for GlobalData, says: “Growing urbanisation, changing lifestyles, and rising popularity of wine, particularly among the upper middle-class urban consumers, is driving the sector. With rising purchasing power, and increasing wine culture in the country, India offers magnificent growth opportunities for wine manufacturers”.
GlobalData’s research evaluates the Indian wine market in three distinct categories: fortified wine, sparkling wine, and still wine. Of the three categories, still wine captured majority of the market in 2016 with volume share of 52%, and set to continue its dominance in the future. Fortified wine was the second largest category, accounting for 43.6% volume share, while sparkling wine held a share of 4.4%.
Akkineni adds: “Still wine will continue to lead the market, growing at a CAGR of 20.4% during 2016–2021, followed by fortified wine and sparkling wine which are likely to grow at CAGRs of 19.4% and 18.7%, respectively, during the forecast period.”
Compared to leading four countries in the APAC region (China, Japan, Australia and Hong Kong), Indian wine market is relatively consolidated with top five brands holding 44.9% volume share in 2016. Interestingly, the three top market players – Indage Vintners, Sula Vineyards and John Distilleries are all Indian companies.
Information based on GlobalData report – ‘Country Profile: Wine sector in India’