The domestic wine consumption is expected to touch around nine million litres by 2010, growing at CAGR of around 22 per cent per annum.
NEW DELHI: The domestic wine consumption is expected to touch around nine million litres by 2010, growing at CAGR of around 22 per cent per annum.
The consumption is expected to touch nine million litres from the current estimated level of about five million litres a year with major cities like Delhi, Mumbai, Chennai, Kolkata, Pune and Bangaluru producing a good deal of wine consumers.
''India's wine market is currently equivalent to around 200 people, sharing one bottle but it is likely to grow at projected CAGR of 22 per cent over the next three years in view of rising consumption of wine patterns not only among youngsters but equally so in aged group,'' Chamber President Venugopal N Dhoot said.
The demand for wine, nearly 80 per cent, is accounted by major cities like Delhi, Mumbai, Chennai, Kolkata, Pune and Bangaluru.
Fourty one per cent of the wine quaffed in the country is consumed in the Western part of the country, followed by the North at 29 per cent, Industry body Assocham in a paper titled 'Wine : Bearing Fruit in India', has said.
Around 63 per cent of the volume sales of wine are through off-trade channel in five-star hotels, pubs and bar-restaurants, the study further said.
A large teeming population under 30 years fold is one of the various factors that amounts to soaring wine consumption in the country. It is estimated that around 650 million will witness attitudinal shift in alcohol consumption and develop a penchant for wine.
Secondly, the rising disposable incomes among the people imply that a greater part of the population can afford such products.
Thirdly, the influence of the Western World is pushing the Indian youth to change their lifestyle and standards of living.
Fourthly, measures and pressures adopted by the government aimed at weaning the population off stronger and more harmful drinks like spirits have aided growth of the wine industry.
Many state governments have reduced duties on wine, eased restrictions on distribution, allowing wine to be sold in supermarkets and have provided incentives for wineries to establish new facilities, the study added.
The cost for opening and setting up a wine plant in the country with capacity of around a lakh litres comes only to somewhere between the Rs 1-1.5 crore mark. As a result many entrepreneurs, Indian and foreign, are jumping on the Indian wine bandwagon.
The conditions thus formed for winemakers have already drawn the likes of top drink makers Diageo, Pernod Ricard, LVMH's Moet Hennessey and SABMiller in India that was once described as comprising of small and mid-sized players.
Other companies like Anheuser-Busch Co Inc and Danish brewer Carlsberg are also on their way.
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