Indian market sends mixed message

3rd March, 2014 by Gabriel Stone

A report that India’s domestic wine market is growing at 30% a year has been tempered by a warning that many of the country’s producers are facing bankruptcy.

IndiaAccording to a paper released last week by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), the country’s domestic wine market is expected to grow from its current estimated level of 21 million litres to reach 28m litres by 2015.

Wine: Bearing Fruit in India attributed the rise to a number of factors, including “greater exposure to Western culture”, “rising disposable incomes” and a “teeming population” of around 800m people under the age of 25, who are expected to drive a shift towards wine.

The report also noted the boost generated by many state governments in reducing duty on wine, relaxing distribution restrictions to allow wine onto supermarket shelves and providing incentives for wineries to build new facilities.

However, this positive outlook was called into question by an article published yesterday in the Times of India, which claimed: “of the 75 wineries in Maharashtra, 50 are on the brink of closure”.

Noting that Maharashtra accounts for the vast majority of India’s 93 wineries, the article included comment from Shivaji Aher, president of the All India Wine Producers’ Association, who blamed this decline primarily on “a lack of funds for marketing.”

However, while the ASSOCHAM report included a recommendation for the government to support India’s wine industry with, among other things, “better methods of sales promotion,” its main message to producers was that “growers should concentrate on producing less, but higher quality grapes.”

Introducing the paper, ASSOCHAM secretary general Mr DS Rawat noted that India’s wine market growth is “faster than that for any other alcoholic beverage.”

He observed that demand remains focused on major cities, with Mumbai, New Delhi, Bangalore, Chennai, Kolkata, Pune, Goa and Punjab together accounting for “almost 85%” of India’s total wine consumption. Around 63% of wine sales come from the on-trade sector, primarily five star hotels, pubs and bar-restaurants.

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Job vacancies

Brand Ambassador – Santa Rita Estates

Santa Rita Estates
London or Hertfordshire but with flexibility to travel, UK

Sales Executive - Wine and Spirits Awards

The Drinks Business
Central London, UK

On-Trade Channel Manager

Delegat Europe Limited (UK)
London / Midlands, GB

Trade Marketing Analyst

Delegat Europe (UK)
London, GB

Key Account Executive

Delegat Europe Limited (UK)
London / Midlands, GB

Senior National Account Manager

Bibendum PLB
London, UK

ON-TRADE Sales Executive

Roberson Wine
London, UK

OFF-TRADE Sales Executive

Roberson Wine
London, UK

Judging Week Runners

Decanter World Wine Awards
ExCel Centre, London E16, UK

Sales Administrator

Les Caves de Pyrène
Guildford, UK

Retail Commercial Executive

Laithwaite's Wine
Theale, Berkshire

Wine Buyer

Conviviality Plc
Crewe, UK

Sales Account Manager - On-Trade

Berkmann Wine Cellars
Liverpool

Sales Account Manager - On-Trade

Berkmann Wine Cellars
M3/M4 corridor

Media Sales Manager - Hong Kong

The Drinks Business Hong Kong
Hong Kong

The Global Merlot Masters 2017

Deadline : 31st March 2017

The Prosecco Masters 2017

Deadline : 10th March 2017

db Awards 2017

Deadline : 28th April 2017

The Global Organic Masters 2017

Deadline : 3rd March 2017

Click to view more

The Global Sparkling Masters

the drinks business is thrilled to announce the launch of The Global Sparkling Masters

The Global Rosé Masters 2016

the drinks business is proud to announce the launch of the Global Rosé Masters 2016.

The Prosecco Masters 2016

Now in its third year, the competition will reflect the growth in popularity of this fresh and exciting sparkling wine from the picturesque regions of Veneto and Friuli.

The Global Pinot Noir Masters 2016

After the success of last year’s competition that judged over 250 wines from no less than 16 countries, the drinks business is proud to announce the third year of the Global Pinot Noir Masters

Click to view more