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For the first time in history the US have become the world biggest wine market. France, as the result of the drop in consumption, lost its first place, but remains the world's third largest wine producer behind Italy and Spain. The world wine business is estimated to be worth around USD 73 billion. But because of a weakening market situation the 3 big countries in this sector must conquer market shares in emerging countries. Yet, even the Asian market becomes more difficult.

However, it did not stop Chinese companies which purchased 96 vineyards in 3 years in the Bordeaux region in France. All eyes are now turned to India. But it must be noted that the consumption of wine in this country is insignificant. It is estimated that wine in India has penetrated only 2 to 3 million individuals out of a population of 1.2 billion. In this context, it would not be at all surprising if the consumption should double by 2020. As reported by "The Indian Express" by 2017 wine consumption in India should increase to 2.1 million cases from the 1.2 million cases consumed in 2013. And the latest forecast is expected to make India the 4th largest spirits importer in Asia by 2017. Hope lies in the growing number of Indians who travel abroad and discover new consumption patterns, in particular wine to accompany a meal. But many challenges still remain. And one major obstacle for large wines exporting countries is the prohibitive taxation on wine importations which stands at 148%. That is why imported wine is reserved for an elite. But a fast growing middle and upper class will of course increase significantly in the coming years the consumption of imported wines.

Mo Tailland / 9th July 2014

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