Still wine market to lead wine growth in India

The still wine market in India looks set to outstrip the spirits market, with Canadean predicting it will lead growth in the Indian wine industry at a compounded annual growth rate (CAGR) of 26.2% by value up to 2017. This is nearly twice as fast as the spirits market, and also faster than most food and soft drink sectors in the country.

The market research firm attributes the growth to an increase in disposable income, strong marketing campaigns and increasing Western influences. Still wine held the largest share of the sector in 2012, with value and volume shares of 91.4 and 95% respectively.

Indian wine sector category shares. Source: Canadean.

This trend is expected to continue up to 2017. Still wine will be the fastest-growing category with a value CAGR of 26.7% and volume CAGR of 24.3% up to 2017.

In India, Canadean says, wine is mainly a celebratory drink; consumers prefer to drink spirits or beer with meals and for everyday occasions. Canadean says the on-trade channel has seen the biggest growth in market share, with a CAGR of 24.23% up to 2012. Food and drink specialists, along with hypermarkets and supermarkets, fall close behind with a steady growth in share of distribution channel up to 2017.

The Canadean report, ‘The Future of the Wine Market in India to 2017’, was published in June 2013.