Rapid growth forecast for Indian wine market by 2021

According to a recent report by GlobalData, the Indian wine sector is expected to grow at a value compound annual growth rate (CAGR) of 19.9% between 2016 and 2021. While it was valued at US$908.6 million in 2016, the impact of western culture is projected to boost the wine sector in India in the future.

“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,” explained Kiran Kumar Akkineni, consumer analyst for GlobalData.

The research by GlobalData analysed three categories in the Indian wine market: fortified wine, sparkling wine and still wine.

It found that still wine was the most popular, with the highest volume share of 52% in 2016, while fortified wine was the second-largest category, accounting for 43.6% volume share. Sparkling wine was consistently the lowest volume share of the three, holding a share of 4.4%.

“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,” Akkineni said.

During 2011–2016, there was a high CAGR of 23.2%, but India accounted for only a 0.2% share of the global wine sector in 2016. However, the budding wine sector in India is proven by the fact that 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.

The wine market in India is relatively consolidated with top five brands holding 44.9% volume share in 2016, in comparison with the leading four countries in the APAC region (China, Japan, Australia and Hong Kong). All three top market players, Indage Vintners, Sula Vineyards and John Distilleries, are Indian companies.