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Russian Alcohol Market Shows Rising Sales Despite Falling Production in Early 2026

Russia’s alcoholic beverage market displayed contrasting trends during the first four months of 2026, as retail sales continued to grow while domestic production declined across several major categories.

New data from the Federal Service for Alcohol and Tobacco Market Regulation, reviewed by RBC Vino, highlights shifting dynamics in Russian alcohol consumption and the growing role of imports in certain segments.

Between January and April 2026, retail sales of alcoholic beverages in Russia — excluding beer, cider, and mead — increased by 0.8% compared to the same period in 2025. At the same time, production volumes for these beverages fell by 7.2%, signaling continued pressure on domestic producers despite stable consumer demand.

Vodka Sales Continue to Grow

The strongest signal of resilience in the Russian spirits market came from vodka, which remains the country’s dominant alcoholic beverage category.

Vodka production declined by 4.2% during the first four months of 2026, reaching 18.3 million decaliters. However, retail sales increased by 2.3% to 23.3 million decaliters, demonstrating that consumer demand remains robust despite lower production output.

According to official data, Russian producers still account for roughly two-thirds of vodka purchased in the country, underlining the category’s strong domestic base.

Andrey Moskovsky linked the continued popularity of strong spirits to what he described as Russia’s “northern model” of alcohol consumption.

According to Moskovsky, discussions about changing consumer habits — such as increased wine consumption, craft beer growth, and more conscious drinking behavior — remain concentrated primarily in urban premium markets and media narratives.

“The mass consumer operates in a different world,” he noted, suggesting that traditional strong alcohol categories continue to dominate mainstream consumption patterns across Russia.

Cognac Market Highlights Import Dependence

The cognac segment also revealed a gap between domestic production and consumer demand.

Retail cognac sales declined slightly by 1% to 4 million decaliters, while production fell by 0.2% to 2 million decaliters. The figures indicate that approximately half of all cognac consumed in Russia is imported.

The reliance on imported cognac reflects the premium positioning of the category and the ongoing demand for foreign-produced spirits despite economic and geopolitical pressures affecting international trade.

Liqueur and Vodka-Based Drinks Gain Momentum

One of the fastest-growing categories in the Russian alcohol market is liquor and vodka-based beverages.

From January to April 2026, production in this category increased by 10.1%, while retail sales surged by 14.6% compared to the previous year.

The strong performance suggests that flavored alcoholic beverages and ready-to-drink spirit categories continue to attract consumers seeking more accessible and diversified drinking options.

Industry observers note that these products often appeal to younger demographics and consumers looking for alternatives to traditional straight spirits.

Russian Wine Production Falls Sharply

Russia’s wine industry faced a difficult start to 2026, with production declining significantly across multiple categories.

Still wine production fell by 14.5% to 9.9 million decaliters, while sparkling wine production dropped by 13% to 4.1 million decaliters. Liqueur wine production experienced the steepest decline, falling 21.9% to 358,000 decaliters.

Despite weaker production figures, retail sales trends varied by category.

Sparkling wine sales increased by 4.4% to 6.7 million decaliters, continuing a positive trend that analysts expect to strengthen further during the year. Meanwhile, still wine sales declined by 1.9%, and liqueur wine sales fell by 4.3%.

Nevertheless, still wines remained the largest wine category in Russia, totaling 17.1 million decaliters sold during the first four months of the year.

Imported Wines Retain Strong Market Presence

Official data also highlights the continued importance of imported wines in the Russian market.

Imported products account for nearly half of all still wine sales and approximately one-third of sparkling wine sales. This demonstrates that foreign wine producers continue to maintain a significant presence in Russia despite changing market conditions and trade complexities.

In contrast, Russian producers almost entirely dominate the domestic liqueur wine category, where local production volumes closely match retail sales levels.

Sparkling Wine Seen as a Growth Driver

Artur Sarkisyan, author of the “Guide to Russian Wines” and partner at RBC Vino, previously predicted that sparkling wine would become one of the strongest-performing categories in 2026.

According to Sarkisyan, many producers secured sparkling wine production licenses well in advance, preparing for growing domestic demand.

He expects both new market entrants and increased production volumes from existing wineries to strengthen the position of Russian sparkling wines over the coming years.

“The current sales figures for domestic sparkling wines are far from the limit,” Sarkisyan stated, adding that the category still has significant room for expansion.

Changing Dynamics in the Russian Alcohol Market

The latest figures reveal a Russian alcohol market undergoing gradual transformation rather than rapid change.

While strong spirits such as vodka continue to dominate mass consumption, categories including sparkling wine and flavored alcoholic beverages are showing growing momentum.

At the same time, declining production volumes across multiple segments suggest that producers continue to face operational and economic challenges, even as consumer demand remains relatively resilient.

The evolving balance between domestic production, imports, and shifting consumption habits will likely remain one of the key themes shaping Russia’s beverage industry throughout 2026.

Source: RBC Vino

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