In the first ten months of 2024, retail alcohol sales in Russia soared to their highest levels since 2017, the year official statistics began.
According to data from the Federal Service for Control over Alcohol and Tobacco Markets (Rosalkogoltobakkontrol, or RATK), a total of 184.2 million dal (decaliters) of alcoholic beverages were sold. This remarkable milestone underscores a steady 21% growth in alcohol sales since 2017, with vodka, still wine, and sparkling wine achieving record numbers.
Vodka Sales Remain Dominant
Vodka, a cultural mainstay in Russia, saw its highest sales since 2017, reaching 62.5 million dal in just ten months. While this figure is slightly higher than in 2022, when 62.5 million dal were also sold, the growth from 54.2 million dal in 2017 demonstrates sustained demand for the iconic spirit.
Still and Sparkling Wines Shine
The Russian appetite for wine continues to grow. Still wine retail sales for January to October 2024 totaled 46.9 million dal, marking a modest 0.9% increase from the same period in 2023. However, the long-term growth since 2017 has been significant at 22.5%.
Sparkling wine, in particular, has seen a meteoric rise in popularity, with sales reaching 16.3 million dal in 2024’s first ten months—up 10.9% from 2023 and an impressive 61% since 2017. These figures reflect an increasing appreciation for sparkling wine in Russian consumer habits, signaling a shift towards celebrating with bubbly beverages.
Other Alcohol Categories Show Mixed Trends
Sales of alcoholic beverages, including tinctures, liqueurs, and balms, surged to 13.2 million dal, a 16.6% increase from 2023. Similarly, strong spirits like whiskey, rum, and gin rose by 15.7%, reaching 11.3 million dal.
However, low-alcohol products experienced a sharp decline, with sales plummeting by 19.8% to 11.5 million dal. This downturn is attributed to a fourfold increase in excise taxes on May 1, 2024, making production economically unfeasible.
Grape-containing drinks without ethyl alcohol and fruit-based alcoholic products also faced declines of 34.3% and 20.1%, respectively.
Record Production Levels Mirror Retail Success
The rise in sales aligns with record production levels. RATK reported 27.1 million dal of still wine and 13.47 million dal of sparkling wine produced in Russia from January to October 2024, the highest figures since 2017.
Broader Implications
The record sales reflect evolving consumer preferences and the resilience of Russia’s alcohol market. Vodka remains a cornerstone, but the growing enthusiasm for still and sparkling wines signals diversification in drinking habits. At the same time, rising taxes and changing regulations are reshaping the market landscape, particularly for low-alcohol beverages.
This period of growth presents opportunities for producers and retailers to innovate while navigating regulatory challenges, ensuring that consumer demand continues to be met in a dynamic market environment.
Source: RBC Vino