Wine tipplers set to triple by 2011, on a high of retail distribution

New Delhi, Mar 12, 2008: Indians drank 66,000 hectoliltres or 8 million bottles of grape-based wines in 2006. And the consumption is expected to triple by 2011 to reach 188,000 hectolitres, according to a study released by Bordeaux (France) based Vinexpo and British Consultancy firm, The International Wines and Spirits Record (IWSR).

The wine market at the same time is expected to display a growth rate of 30% per annum. According to IWSR, in 2006, the consumption of other spirits in India increased by 24.5% to reach 111.68 million 9-litre cases. The market for the same is expected to grow to 148.15 million cases between 2006 and 2011. “As investments come in to improve the distribution network, the tax rates come down and the retail structure improves with supermarkets and hypermarkets, I expect the wine and liquor consumption in India to pick up even faster,” said Vinexpo chief executive Robert Beynat. He is in India to promote the 2008 Vinexpo to be held in Hong Kong and meet Indian companies and distributors. This is the sixth consecutive year of the study that looks at changes in production across 28 countries and consumption in 114 markets over a 10-year period.

The study also pointed out that domestic wines contributed three fourths of all the wine consumed in India in 2006 while imported wines made up for the rest. The IWSR study forecasts 180% growth in consumption of imported and 197.7% growth in the consumption of domestic wines between 2006 and 2011. However, the bulk of spirit consumption is still accounted for by scotch and whisky that represented 58.3% in 2006. They are expected to contribute 60% of the total by 2011.

In comparison, the world consumption of grape-based still and sparkling wine reached 230.12 million hectolitres (equal to 30.7 billion bottles) in 2006. Between 2006 and 2011, the global wine consumption is expected to rise to 244.52 million hectolitres representing an increase of 10.8%. Asia is set to lead the global market with more than 9% growth rate compared to a global average of 1%.

Source – The Financial Express