The Hindu Business Line : Wine consumption poised to grow three-fold: Study

New Delhi, March 12 India is uncorking the wine bottle, literally. And if the UK-based International Wines and Spirits Records (IWSR) statistics are anything to go by, wine consumption here is poised to grow three-fold by 2011.

“With both domestic and international players wanting a slice of the market, the wine industry is bubbling with activity. Wine consumption in India is likely to touch 1.88 lakh hectolitres by 2011 from 66,000 hectolitres in 2006. The rapid growth of around 30 per cent corresponds to the growth in the economy and tourism,” Ms Dominique Herirad Dubreuil, Chairperson, VinExpo, the international wine and spirits exhibition, told Business Line.

Observing that the wine industry is also emerging from its infancy in India, she said a large number of local manufacturers are retailing and importing wines from India. Ms Dubreuil said the high excise duty on imported wines was, however, an impediment to growth.

“Even China at one point had high excise duties. However, it realised that the industry is very profitable and suitably made changes in the tax structures. This has taken the industry to a new high,” she added.

Around a quarter of the wine consumed in the country is imported and France accounts for 41.7 per cent (or 6,300 hectolitres) of wines imported by India. India ranks 77th in wine consumption, she said.

According to reports, Indian wine market is estimated at 1.2 million cases (one case has 12 bottles of 750 ml each), with imported wines accounting for a mere 2 lakhcases.

The per capita consumption of wine in India is only 9 ml, compared with 400 ml in China. By 2011, Asia will account for 4.8 per cent of the world’s wine consumption.

VinExpo is organising a wine exhibition in Hong Kong to facilitate trade of wines in Asia.

The B2B exhibition is expected to see participation of 600-700 wine producers from 28 countries and will impart knowledge on wine tasting, pairing it with food, marketing and sales.

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