THE POWERPOINT PRESENTATION

Wine Market in India

Wine2wine - Verona, 23 November 2020

Alessandro Liberatori
Trade Commissioner, Director ITA New Delhi Office
Coordinator of ITA Network for India, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives
PRESENTATION FLOW

01 BASIC FACTS - INDIA

15 INDIAN WINE PRODUCTION

02 MARKET OVERVIEW
17 GOVERNMENT SUPPORT

03 TRADE IN WINE
18 KEY MARKET TRENDS

10 ITALIAN PRESENCE IN INDIA

19 SWOT ANALYSIS

08 CONSUMPTION

09 MARKETING & DISTRIBUTION 20 IMPACT OF COVID ON IMPORTED WINES

13 TAXES & REGULATIONS 21 INDIAN ASSOCIATIONS & EXHIBITIONS

14 LABELLING REQUIREMENTS

2
 BASIC FACTS - INDIA

• Population: 1.37 Bn in 2020

• Area: 3,287 million km²
• Federal Country: 28 States & 9 Union Territories
•Economy: Fastest-growing trillion-dollar economy in the
world and the fifth-largest economy overall
• Languages: 22 languages recognized by the
Constitution
• Median Age: 28.4 Years
• Presence of all the 15 principal climatic zones
• GDP: US$ 2,936 Bn
• GDP per-capita: US$ 2,172
GDP growth projections
2020 -10.3%
2021 + 8.8%
Source: World Economic Forum, IMF

1
 MARKET OVERVIEW

The second most populous country in the world in an emerging wine market

Traditionally a whiskey, rum and beer dominated market, the setting up of

Champagne Indage’s plant in 1984 marked the manufacture of Wine in India

At present, India has more than 100 wineries

Wine-based food service restaurants and cafes are gaining strength

The Indian market for wine was valued at €738 Mn in 2019.

Expected to grow at a CAGR of 25% to reach €2,807 Mn by 2025

2
 ITALIAN WINE EXPORTS TO INDIA
Value in Million Euros

2017 2018 2019 2020

(Jan-Aug)

2.54 2.57 1.84 1.05

28.15% 1.18% 28.21% 18.5%

Source: Ministry of Commerce & Industry, Government of India

3
 IMPORT OF WINE INTO INDIA

Calendar Year(Value: EUR Million) % share January-August % change

Rank Partner
2017 2018 2019 2019 2019 2020 2020/2019
_World 21.1 23.3 19.4 100% 12 7.6 -36.4%
1 Singapore 0.9 4.8 4.7 24.2% 3.2 0.8 -74.1%
2 Australia 3.4 5.6 4.6 23.6% 2.9 2.1 -26.2%
3 France 8.1 4.7 3.7 19% 2.3 1.5 -33.4%
4 Italy 2.54 2.5 1.8 9.5% 1.3 1.05 -18.5%
5 Chile 1.2 1.3 0.1 5.1% 0.5 0.6 28.2%
6 United States 0.8 0.89 0.7 3.5% 0.4 0.2 -47.2%
7 Spain 0.5 0.6 0.6 3.2% 0.3 0.2 -35.1%

8 United Arab Emirates 0.1 0.1 0.5 2.5% 0.2 0.2 12.3%
9 New Zealand 0.3 0.3 0.3 1.8% 0.1 0.1 -14.8%
10 South Africa 0.4 0.6 0.3 1.4% 0.2 0.3 66.2%
Source: Ministry of Commerce & Industry, Government of India
4
 IMPORT OF OTHER ALCOHOLIC BEVERAGES
INTO INDIA

BEER MADE FROM MALT

Calendar Year (EUR ‘000) January-August

Rank Partner
2017 2018 2019 2019 2020 %Δ 2020/19

_World 6152 10775 10241 6393 4073 -36.29

1 Mexico 1410 3512 3153 1794 1080 -39.82
2 Belgium 1521 3118 2680 1981 613 -69.07
3 Singapore 529 812 927 280 384 37.06
4 Bhutan 3 63 643 388 572 47.29
5 Germany 404 1042 515 391 218 -44.26
26 Italy 28 38 24 24 15 -38.03
Source: Ministry of Commerce & Industry, Government of India

5
VERMOUTH

Calendar Year(Value: 000 EUR) January-August

Rank Partner
2017 2018 2019 2019 2020 %Δ 2020/19
_World 50 111 58 32 28 -11.08
1 Singapore 6 11 24 18 4 -80.40
2 Italy 11 75 16 11 18 66.86
3 United Kingdom 28 11 7 0 2 403.54

4 United Arab Emirates 1 0 6 0 0 0

5 Switzerland 0 2 2 0 1 351.56
6 France 0 4 2 2 0 -100

Source: Ministry of Commerce & Industry, Government of India

6
SPIRITS, LIQUEUR AND OTHER SPIRITUOUS BEVERAGES

Calendar Year(Value: EUR Million) January-August

Rank Partner
2017 2018 2019 2019 2020 %Δ 2020/19
_World 250 269 313 205 128 -37.42
1 United Kingdom 190 165 157 104 68 -35.53
2 Singapore 19 54 65 47 12 -73.22
3 Belgium 0 6 44 27 14 -50.18
4 France 17 14 12 7 6 -19.91
United Arab
5 Emirates 5 3 8 2 14 500.50
6 United States 8 7 8 6 2 -56.84
7 Netherlands 1 7 4 2 6 195.55
8 Sweden 3 3 4 2 2 -0.64
9 Mexico 2 1 2 1 1 -20.76
12 Italy 0.68 0.65 1.14 0.7 0.277 -60.61
Source: Ministry of Commerce & Industry, Government of India

7
 TOP SUPPLIERS OF WINE TO INDIA
(2019)
#4 ITALY
#3 FRANCE
EUR 1.8 Mn (9.5%)
EUR 3.7 Mn (19%)

#5 CHILE
#1 SINGAPORE
EUR 0.1 Mn (5.1%)
EUR 4.7 Mn (24.2%)

#2 AUSTRALIA
EUR 4.6 Mn (23.6% 8
 TOP SUPPLIERS OF WINE TO INDIA
(Jan-Aug 2020)
#3 ITALY
#2 FRANCE EUR 1.05 Mn
EUR 1.5 Mn (19.74%) (13.81%)

#5 CHILE
#4 SINGAPORE
EUR 0.6 Mn (8.22%)
EUR 0.8 Mn (11.62%)

#1 AUSTRALIA
EUR 2.1 Mn (27.9%)
9
 ITALIAN PRESENCE IN INDIA

Some of the Existing Italian Companies in Indian Wine Market

10
 CONSUMPTION OF WINE

Rest of India,
15%
• Nationwide consumption of Wine - 30 million
litres per year. Hyderabad,
Mumbai, 32%
• 485 million consumers above legal drinking age 3%
• Younger men and women - more than 50% of Pune, 5%
wine drinkers in India
• 80% of the demand in major cities – Mumbai,
Delhi, Bangalore, Pune and Hyderabad.
• Most consumed wines:
o Red wines – 49%
Bangalore,
o Fortified wine – 35%
20%
o White wine – 13%
o Sparkling wine – 3%
Delhi, 25%

11
MARKETING & DISTRIBUTION

“Wine & Beer shops”

Modern retail food industry - restaurants and cafes

States have control over taxation, marketing, storage, and

distribution of wine
Banned In: Bihar, Gujarat, Manipur, Mizoram and Nagaland

Advertising for alcoholic drinks banned in India since 2000.

In Government-approved bonded warehouses.

12
 TAXES & REGULATIONS
Requirements in India

IMPORT DUTIES ON WINES (HS CODE: 2204)

BASIC CUSTOM DUTY

SOCIAL WELFARE
CHARGES
INTEGRATED GST 165%

All imported Food & Beverages are regulated by Food

Safety and Standard Authority of India (FSSAI)

All labels intended to sell in India must be registered

in the Excise Department of respective states
where the product needs to be distributed.

13
Fonte: ICEGATE, FSSAI
 LABELLLING
Requirements in India
• The label should include:
1. Name of Product
2. Ingredient List / Alcohol Content
3. Manufacturer Name and Complete Address
4. Date of Bottling / Vintage
5. Country of Origin
6. Net Weight/ Volume
• Additional Information:
1. Name and address of the importer
2. FSSAI logo and license number, to be obtained
3. Statutory warning - “Consumption of alcohol
is injurious to health” and “Be safe – don’t drink
and drive”
14
 PRODUCTION IN INDIA

Major Wine Producing Regions in India

• Total area of 123,000 acres of vineyards in
India
• Out of this, only 1-2% is used to produce wines Himachal
• Major wine producing regions – Nasik, Pune,
Bangalore, Hampi Hills, Bijapur & Northern
Pradesh
Karnataka
• Established domestic players - Sula Vineyards,
Grover Zampa and Fratelli Wines Pvt. Ltd.

GRAPE VARIETY Maharashtra

• Nasik
• Domestic - Anabeshahi, Arkavati and Arkashyam Karnataka
• Bangalore
• Pune
• Imported - Syrah, Cabernet Sauvignon, Merlot,
Chardonnay, Sauvignon Blanc, Zinfandel, Shiraz, • Hampi
Chenin Blanc, and Clairette Blanche Hills
• Birjapur &
Northern
Karnataka
15
 WINE PRODUCERS IN INDIA

NASIK PUNE BANGALORE HAMPI HILLS BIJAPUR &

NORTHERN
KARNATAKA
Chandon India Four Seasons Bangalore Soma KRSMA Estates Nisarga Vineyards
Vineyards Vineyards

Chateau D’Ori Fratelli Wines SDU Winery Elite Vintage Winery

Good Drop Wine Deccan Plateau Grover Zampa

Cellars Vineyards Vineyards

Nine Hills Alpine Wineries

Vallonne Vineyards

16
 GOVERNMENT SUPPORT

• Reduction or elimination excise taxes on domestic

wines
• Easing distribution restrictions
• Fiscal incentives to establish wineries and vineyards
• High tariffs and excise duties on imported wines
• Maharashtra:
o Eased licensing requirements for wineries
o Establishment of wine industrial parks
• Karnataka:
o Grape subsidy of INR 50,000 (EUR 570) per hectare
for new plantations.
o Promotion activities - wine festivals, tasting courses
conducted by Karnataka Wine Board

17
 KEY MARKET TRENDS

Rising Demand For Imported Wines

Market Reach and Quality

Brand Focus & Young Drinkers

New Retail Channels

18
Fonte: Elaborazioni ICE New Delhi su dati EUROSTAT
 SWOT ANALYSIS

OPPORTUNITIES
STRENGTHS
✓Young Population
✓Economic Prosperity ✓Rising Health Awareness
✓Favorable Weather Conditions ✓Modern Trade – Online and Offline
✓Urbanization Channels
✓Western Influence

THREATS
WEAKNESSES
✓State-Wise Alcohol Bans
✓Limited Supply-Chain Infrastructure
✓Protectionist Tariffs
✓High Minimum-Drinking Age
✓Covis-19 Pandemic
✓Social and Religious Taboo
✓Marketing Restrictions

19
 IMPACT OF COVID ON IMPORTED WINE
MARKET IN INDIA

• Lockdown of hotels and restaurants, banquets and

conferences
• Inability to complete the harvest
• Logistic issues
• Lack of sales, vulnerable producers and importers
• Expectation of a bleak alcohol market in 2020-21

20
 INDIAN ASSOCIATIONS & EXHIBITIONS
3-5 February 2021
Annapoorna - Anufood
(Food & Beverage)
Mumbai
ALL INDIA WINE PRODUCERS
ASSOCIATION 11-13 February 2021
SIAL
(Food & Beverage)
New Delhi
INTERNATIONAL SPIRITS AND
WINES ASSOCIATION OF INDIA
(ISWAI) 9-13 March 2021
AAHAR
(Food & Beverage)
New Delhi
9-11 December 2020
DRINK TECHNOLOGY
INDIA
(AlcoBev)
Mumbai
21
THANK YOU!
CONTACT US:
New Delhi Office
newdelhi@ice.it
www.ice.it/it/mercati/india

Mumbai Office
mumbai@ice.it
www.ice.it/it/mercati/india