The domestic consumption of wine in India surpassed 10 Million Liter in 2007 and is expected to reach about 15 Million Liter in 2008.
The Technical Coordinator of Grape Wine Park, Maharashtra, Jaideep K Kale, said that the domestic consumption of wine in India crossed 10 Million Liter last year and is anticipated to reach around 15 Million Liter in 2008. Also, since 2001, the consumption of foreign wine has increased by nearly 4,00,000 Liter, as reported by SommelierIndia.
In 2001, wine consumption in India was only 1 Million Liter. The market is growing at 30% per year and is expected to grow at this pace in near future. The growth in wine consumption is faster as compared to an annual growth of 7-8% in China, and only 2-3% in the global industry. Restaurants, five-star hotels, pubs and bars are the main wine selling outlets and contribute 63% in total sales.
Changing socio-economic conditions in the society with decline in import duties and recognition of wine as a healthy drink in comparison to intoxicating spirits are recognized as the major reasons for rise in wine consumption in India.
Further, due to the adoption of wine in Tier II cities and small towns, growth is being witnessed in wine market of the country. Also, the experimental behavior and curiosity among consumers for wine are leading to growth in the Indian wine market.
Also, a large number of Indians are gaining awareness about wine due to improved marketing and distribution strategies. The marketing strategy is revolving around sampling that provides an opportunity to consumers to try various kinds of wines in restaurants and bars. In addition, the increasing focus on health benefits of wine, for instance, its action as an anti-oxidant that prevents cancer and reduces heart diseases, by press has pitched wine on a wider scale.
According to a Research Analyst at RNCOS, “Improved marketing techniques and increasing awareness about wine in India is not only increasing the consumption of domestic wine but also giving benefits to new brands. Also, the growing Indian wine market is witnessing a change in its competitive dynamics due to a rapid increase in the number of wine consumers.”
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