Russia’s alcohol market is undergoing one of the most paradoxical and dynamic shifts in recent years. While overall alcohol consumption continues to decline to historic lows, sales of premium and ultra-premium spirits are skyrocketing.
From October 2024 to September 2025, sales volumes of premium spirits priced from 1,000 rubles per 0.7L jumped 51% compared to the previous year, according to SimpleWine, one of Russia’s leading importers and retailers.
This surge reflects a global phenomenon known as the “premiumization trend”—a shift where consumers drink less but choose higher-quality, more expensive products. In Russia, this trend has accelerated sharply due to rising prices, economic uncertainty, and evolving consumer preferences.
Premium Spirits Surge While Overall Alcohol Consumption Falls
Despite booming premium sales, official data from Rosalkogoltobakkontrol shows that overall alcohol consumption dropped 12.9% in the first half of 2025—the lowest level on record. Production also declined by 7.8% year-on-year.
Vodka, cognac, sparkling wine, and still wine continue to lose ground. Yet, high-end spirits are growing faster than ever.
Producers confirm the trend
- Alcoholic Siberian Group (ASG) reports a 22% increase in shipments of premium brands in 2025.
- Premium spirits sales nationwide increased 14% in volume from January to October 2025.
- Growth spans all categories: liquors, vodka, gin, and increasingly craft spirits.
This shift is driven by a profound change in consumption culture: the “less but better” mindset.
The Premium Paradox: Why Consumers Are Spending More
Amid economic pressure and a savings-focused mindset, Russians are buying alcohol less frequently—but when they do, they are trading up.
Why this paradox?
Experts attribute the trend to several factors:
1. Rising mid-market prices
The gap between mid-range and premium spirits has narrowed dramatically. As prices rise, premium options become only slightly more expensive—encouraging consumers to upgrade.
2. Emotional compensation
With travel, electronics, and cars becoming costlier, consumers are seeking affordable luxuries. Premium spirits fit this niche perfectly.
3. Diversification & quality-seeking behavior
Consumers are exploring:
- Craft rum
- Russian gins
- Small-batch whiskey
- Unique liqueurs and infused spirits
Quality and authenticity are the new purchase drivers.
4. Investment interest in high-end spirits
Wealthy individuals increasingly view exclusive spirits as alternative assets. Rare whisky indexes have grown 250–280% over 10 years, outperforming many traditional investments.
5. Conspicuous consumption
The “Veblen effect” remains strong—premium spirits offer status, exclusivity, and gifting value, especially in corporate gifting where premium dominates.
A New Market Landscape: More Importers, More Choice
Russia’s premium and ultra-premium shelves have transformed. Where global corporations once dominated, small importers now thrive. More than 15 new importers have entered the market, offering boutique selections previously available only abroad.
Consumers now have access to:
- Ultra-premium tequila
- Aged rum
- Rare single malts
- Georgian brandies
- Vintage Armagnac
The variety is broader than ever before.
Category Trends: Gin, Whiskey, Rum, and Brandy Lead the Charge
Gin
Premium gin (mostly Russian craft brands) grew 17.6% in liters.
Mid-range gin: +11.1%.
Whiskey
Growth across all tiers:
- Low-end: +12.1%
- High-end: +13%
Single malt whiskey is booming, with global shortages driving demand.
Rum
Rum’s revival is spectacular:
- Thai rum: +79.2%
- Flavored rum: +23.2%
- Premium rum across all price segments: strong double-digit growth
Brandy & Cognac
One of the fastest-growing premium categories:
- Brandy sales: +111% in liters
- Vermouth: +317%
Vodka
Despite long-term decline, premium vodka grew 11%, helping stabilize the entire category.
Younger Consumers Are Driving Change
Nielsen data shows that consumers aged 18–29 favor premium spirits over daily drinking. They value:
- Craft production
- Authenticity
- Brand storytelling
- Unique flavor experiences
This aligns Russia with global trends, where “binge luxury consumption”—occasional but high-quality drinking—is rising.
The Outlook: Premium Spirits Will Keep Rising
According to INFOLine forecasts, by 2029:
- The premium segment (excluding vodka) will reach 25.9% of the strong alcohol market by volume (+3.4 pp)
- And 39.9% by value (+6.2 pp)
Premium spirits are no longer a niche—they are becoming the new center of Russia’s alcohol market.
Source: Forbes Russia