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Russian Wine Market Trends: BRICS Rise as European Imports Decline

In the ever-evolving landscape of global wine trade, recent shifts in Russia's import patterns have caught the attention of industry observers.

As reported by Izvestia, a notable decrease in alcohol imports from European Union countries has coincided with a surge in wine shipments from BRICS nations. Roskachestvo, the Russian Federal Agency for Quality Control and Standardization, has provided insights into these changing dynamics.

By the close of 2023, imports of still wines from traditional European wine powerhouses such as Spain, France, and Italy experienced declines of 11%, 4%, and 1%, respectively. This decline marks a significant departure from previous years' trends. In contrast, countries traditionally considered friendly to Russia have intensified their wine exports. South Africa emerged as a front-runner in 2024, boasting a remarkable 25% increase in wine shipments to Russia. Additionally, the arrival of Indian wines on Russian shores for the first time in five years signals a noteworthy expansion of the market. Furthermore, China has demonstrated a substantial five-fold increase in wine exports to Russia since 2021, indicating a strengthening trade relationship between the two nations.

Roskachestvo experts predict a continued decline in imports from "unfriendly" countries, driven in part by escalating excise taxes. This trend is expected to bolster the market share of Russian wines, with projections indicating that domestic products could soon account for 60-65% of total wine sales in Russia.

Olesya Latysheva, Director of the Department of Research and Promotion of domestic wine products at Roskachestvo and head of the Wine Guide of Russia, sheds light on the burgeoning domestic wine industry. In the first quarter of 2024 alone, Russian wine producers have witnessed a remarkable uptick in production, with output of still wines surging by 25.4% and sparkling wines by 26.5%. Notably, the composition of Russia's wine output is also undergoing a transformation, with white and pink wines now comprising 61% of total production, while the share of red wines has experienced a slight decline to approximately 39%.

These developments underscore a shifting paradigm in Russia's wine market, with domestic production taking center stage. As Russian wine producers continue to expand their offerings and enhance quality, they are poised to redefine the country's wine industry and shape its future trajectory.

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