Wine - India

The Wine market in India has been experiencing significant growth in recent years, driven by changing consumer preferences and increasing disposable income.

Customer preferences: Indian consumers are increasingly embracing wine as a beverage of choice, shifting away from traditional spirits and beer. This shift is driven by several factors, including the perception that wine is a healthier alternative to other alcoholic beverages. Wine is also seen as a more sophisticated and classy drink, appealing to a growing middle class with a desire for luxury products. Additionally, the rise of wine tourism and the popularity of wine tasting events have contributed to the growing interest in wine among Indian consumers.

Trends in the market: One of the key trends in the Indian wine market is the increasing demand for imported wines. Indian consumers are becoming more adventurous in their wine choices and are seeking out unique and exotic flavors from around the world. This trend is supported by the growing number of wine importers and distributors in the country, who are expanding their portfolios to cater to the changing preferences of consumers. Another trend in the market is the rise of domestic wine production. While imported wines still dominate the market, there has been a noticeable increase in the production of Indian wines. This is driven by the growing number of vineyards and wineries in the country, as well as government initiatives to promote the wine industry. Domestic wine producers are focusing on producing high-quality wines that can compete with imported brands, and are also exploring innovative techniques and grape varieties to create unique flavors.

Local special circumstances: India has a complex regulatory environment for the wine industry, with different states having different rules and regulations regarding the sale and consumption of alcohol. This can create challenges for wine producers and distributors, as they have to navigate through a patchwork of regulations. However, the government has been taking steps to streamline the regulatory framework and create a more favorable business environment for the wine industry.

Underlying macroeconomic factors: The growth of the wine market in India is also supported by favorable macroeconomic factors. The country's economy has been growing steadily, leading to an increase in disposable income and consumer spending. This has allowed more consumers to afford premium products like wine. Additionally, the urbanization and westernization of Indian society have also contributed to the growing demand for wine, as urban consumers are more exposed to international trends and lifestyles. In conclusion, the Wine market in India is experiencing growth due to changing consumer preferences, increasing disposable income, and favorable macroeconomic factors. Indian consumers are embracing wine as a healthier and more sophisticated alternative to other alcoholic beverages, leading to a rise in demand for both imported and domestic wines. While there are challenges in the regulatory environment, the government is taking steps to create a more favorable business environment for the wine industry. With these trends and circumstances, the wine market in India is expected to continue its growth trajectory in the coming years.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.