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Often cited as an important emerging market for wine, India’s immense and evolving consumer population presents a number of opportunities. Although traditionally and even today, whisky and rum continue to dominate alcohol consumption in India, the increasing availability of locally produced and imported wine over the last decade, has spawned significant consumer interest in wine.
Rapid urbanization, changing lifestyles, rising disposable incomes and the world’s largest youth population has further contributed to wine’s popularity in India, particularly among the upper middle-class urban consumers. Between 2010 and 2015, the Indian wine industry recorded a double-digit compounded annual growth rate of over 14%; just as leading Indian wine brands gained recognition and awards on the international diaspora.
Despite India’s growing importance in the world of wine, little is known about the Indian wine consumer. As the Indian wine industry gains momentum and wine is desired by a wider spectrum of Indian consumers, there is a greater need to understand them better.
To address this industry need, Sonal Holland Wine Academy commissioned Drshti Strategic Research Services to conduct the first-ever comprehensive survey of the urban Indian wine consumer. The research project personally interviewed 878 urban consumers across five major consumption centres of Mumbai, Delhi, Bengaluru, Pune and Goa with the aim of understanding their awarenesss levels, attitude and usage of wine. Sonal Holland Wine Academy is India’s foremost institution specializing in wine education and consultancy to leading hotels and the trade.
Findings on India Wine Insider 2017 reveal what the consumers know about wine; how do they perceive wine; why and how often do consumers’ drink wine; when and where do they drink wine. Insights from the study uncover consumer realities and help identify future opportunities for growth.
On the launch of India Wine Insider, Sonal Holland MW said, “Global wine companies inevitably rely on local consumer research data to design country-specific marketing strategies. India-specific research data on wine is limited; moreover it employs trade-focused methodology to report trends with no involvement from the Indian wine consumer.
India Wine Insider is a pioneering initiative that anticipates the global industry need to understand the Indian wine consumer better, enabling wine companies to adopt effective and focused marketing strategies for India. The report has direct commercial relevance for wine producers, exporters, importers, retailers and hoteliers; helping them make informed decisions and increase business revenue from wine in India.”
India Wine Insider 2017 unleashes the consumer outlook through its Top 10 survey highlights:
Consumers’ understanding of wine is limited; however, awareness and consumption are positively related. Other than colour, there is very little involvement with other wine styles; names of regions and grape varieties remain under-developed cues. This points to the nascence of the wine market in India, and the scope for educating and involving the consumer.
Price remains the most important choice cue for consumers. Other important choice cues used by consumers when choosing wine are familiarity of brand name, country of origin and colour of wine.
Wine is increasingly a ‘mainstream drink’ and is being consumed across a wide range of occasions, both at home and at restaurants/bars. Consumers show strong preference for drinking wine at home with family members, suggesting that wine is gaining cultural acceptance within Indian households. In restaurants, wine is being mostly consumed during large gatherings, casual or fine-dining meals.
More than 50% of consumers order wines exclusively by the glass, alluding to the price-sensitivity of Indian consumers as well as the need to drink in moderation. This finding highlights the need for better-developed ‘wine-by- the-glass’ program, fair pricing strategies with a balanced representation of both domestic and international wines on wine lists.
Despite price-sensitivity, consumers spend more on wines to impress. More expensive wines are being poured at business meetings, social parties and for gifting to set a favourable impression, making wine important in the social context.
Wine is uniquely positioned in the consumer’s mind as a healthy, sophisticated and a less intoxicating (therefore socially acceptable beverage). These qualities make wine unique, unlike any other beverage thereby giving it a distinctive marketable advantage over other alcoholic beverages.
Consumers view international wines more favourably over domestic wines. Despite being expensive, imported wines are perceived superior to Indian wines in terms of quality, packaging and as gifting options. The only association where Indian wines are rated over international wines is that they offer ‘value for money.’
Women represent an increasingly important market segment for the wine industry. Indian women view wine as a classy, empowering, healthy beverage and are experiencing fewer cultural inhibitions when drinking wine in the presence of their family members or the society at large. Women are purchasing wine as often as men across all occasions with a propensity to spend marginally more than men on a bottle of wine.
There are significant variations in how wine is perceived and consumed across India. Whilst Mumbai remains India’s largest wine consumption market, findings suggest that it is largely a domestic wine-driven market with low frequency of wine purchases and relatively lower spending on wine, compared to other centres. Delhi shows an evolved culture with higher share consumption of international wines over domestic wines, coupled with a higher propensity for wine spends than Mumbai. Bangalore and Pune are vibrant wine markets that can no longer be ignored.
Consumers in these two cities show equal preference for both domestic and international wines across a range of styles, regions and varieties; willingness to pay higher price points, pointing to a rapidly emerging wine culture. Goa, on the other hand, displays a preference for consuming wines largely at home with high prevalence of inexpensive Indian wines in their drinking portfolio.
Younger consumers (25-34 year olds) represent a promising market segment for the wine industry. Contrary to popular trade belief that the younger segment does not know how to appreciate wine, the study reveals that 25-34 year olds are purchasing wine as often as the older consumers. They show a strong preference for international wines over domestic wines and drink wines to appear classy, sophisticated and intelligent. Their positive attitude towards wine and aspiration to drink better quality wines positions them as tomorrow’s frequent, loyal wine drinkers.
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