Indial Wine Market Study 2021
Currently, the world wine sector is faced with volatility and uncertainty due to effects of geopolitical tensions, climate change and the global outbreak of the coronavirus. In 2020, consumption of wine globally was impacted negatively due to the outbreak of the Covid-19 Pandemic. While some countries were able to control the spread of the virus by late 2020, others are experiencing a more severe wave in 2021, leading to lockdowns and restrictions on international travel.
In 2020 world wine production grew by 1% year-on-year to reach 258 million hectolitres. Lesser than expected production has been witnessed in the European Union where efforts have been put to decrease the harvest volume had a noteworthy impact in Italy, France and Spain.
Consumers globally have become more health & safety conscious since the onset of the Covid-19 Pandemic. Awareness about ingredients and source of food has grown by leaps and bounds. Brand building has always been vital and the pandemic reinforced this. Wine brands usually have a unique story, and the ones that have invested in narrating this consistently across touchpoints, have reaped benefits over the last year. Consumers, many, with more time to spare due to the lockdown and WFH scenarios, are seeking out growers with powerful and authentic narratives.
While traditionally whisky and rum are the largest consumed alcoholic beverages in India, the growing availability of locally produced wine over the past 10 years, has boosted consumer interest in the beverage. The market is also being boosted by India’s strong economic growth coupled with increase in discretionary spending and greater exposure to Western lifestyle & content.
Wine production in the country fell by an estimated 20-25% in 2020, primarily due to the erratic monsoon in 2019 and the Covid-19 induced lockdown restrictions. While the sales of the larger players remained constant in 2020, many smaller players saw a decline in sales which may lead to bankruptcy of some players in 2021. Some wine players have launched dedicated company-owned online stores while others have conducted online tastings to continue engaging with consumers. Consumption in restaurants and hotels has come down drastically and it is uncertain currently as to when it will reach pre-Covid levels.
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