| The Indian wine market, which has grown exponentially over the past few years, is attracting the attention of increasing numbers of international players. French, Italian, Chilean, Californian, Australian and South African wines dominate the Indian market, alongside newer Indian entrants.
The market is growing at a rate of up to 25% per annum, as per capita consumption touches around one litre. The huge potential of the Indian market is not lost on wine importers and distributors, who recently began visiting wine fairs such as the Hong Kong International Wine and Spirits Fair 2009 last October.
Some 10 Indian companies visited the Hong Kong venue and used the fair to interact with exhibitors from around the world, creating awareness of the burgeoning Indian wine business.
Subhash Arora, Director of the Indian Wine Academy, says: "the Indian wine market is still not very mature. It is an extremely price sensitive market. In the imported range, the premium segment has wines priced at around US$20 to US$32 per bottle (of 750 ml), and even higher. The mass segment is in the range of US$12 to US$18 a bottle. The prices are even more competitive for the Indian wines, with the premium segment in the range of US$10 to US$12 a bottle. The fast-moving price range is around US$6 to US$7 a bottle."
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| Price-sensitive market. |
| It is this price sensitivity, along with a better understanding of the Indian palate (for full and medium bodied wines, as against dry wines) that has kept the Indian wine market so buoyant.
"There is a better understanding of wines too," says Arora. "Demand for wines in the premium segments is expected to increase over the next few years. Higher disposable incomes, changing lifestyles - and women as an important consuming sector - would also be important factors."
According to industry figures, approximately 1.2 million kilo litres of wine is produced in the country, with 65% priced below US$10 a bottle, while 27% is priced at between US$10 and US$20, 6.5% at between US$20 and US$30, and 1% is priced above US$30 a bottle.
This has lent an edge to Indian wines that are competitively priced.
Wine imports in 2009 were worth US$15 million, which were slightly lower than imports of US$17.5 million in 2008, but that may have been caused by the global economic downturn.
Import prices of wines meanw |
