India has emerged as one of the fastest growing markets for wine consumption on the global map. With a population base of over 1.1 billion, the consumption of wine is extremely low, indicating vast potential for future growth. Besides low consumption level, various other factors such as increasing disposable income, amplified wine marketing and influence of western cultures have given a new turn to the wine consumption pattern in India.
RNCOS, a market research consulting company, reports in Indian Wine Industry Forecast to 2012 study that the wine consumption in India to grow at a CAGR of around 28 per cent during 2009-2012. The study reveals that the wine market is largely dominated by domestically produced wine and imports account for a less share in the total consumption.
Its research team believes that the sales of domestic wines will continue to dominate the Indian wine market over the forecast period, but high growth will also be seen in the consumption of imported wine. The report further anticipates that the consumption of imported wines will rise at a CAGR of around 32 per cent during 2009-2012, well above the industry’s overall growth.