Wine trading companies in Russia have reported a sharp increase in sales of wines from South Africa and Latin America, with imports from these regions surging significantly in 2024.
According to data from Luding Group and Simple Group, cited by TASS, the share of wines from Chile, Argentina, and South Africa accounted for 13% of total Russian wine imports in the first half of 2024, up from 9% in the same period of 2023.
Surging Imports and Market Reshuffling
The rise in imports is particularly striking for South African wines, which saw an 82% increase in volume, while Chilean wine imports rose by 24%. Notably, Chile has overtaken France in still wine supply volume, securing a place among the top five wine-importing countries into Russia. South Africa has also climbed the rankings, surpassing Germany, Abkhazia, and even France to become the sixth-largest supplier of still wines to the Russian market.
Sales data echoes this trend. Luding Group reports that Chilean wines recorded a 9% increase in sales compared to 2023, while South African wines surged by 71%, surpassing Germany and Abkhazia. Meanwhile, Simple Group highlighted that the overall share of wines from Chile, Argentina, and South Africa in Russia’s total wine imports is on a steady rise, compensating for a decrease in availability of wines from "unfriendly" countries.
Decline of European Wine Imports
Wine imports from EU countries have dropped significantly. According to Eurostat, wine shipments from the European Union to Russia totaled 160.6 thousand tons in 2024, marking a decline of nearly one-third from 2023 and reaching their lowest levels since 2004. This drop has primarily impacted Italian wines, which constituted 47% of Simple Group's portfolio in 2023 but have now shrunk to 41% in 2024.
The decline in European imports is largely offset by a combination of factors, including the expansion of Russian domestic wine production and the rise in imports from Georgia, another "friendly" supplier.
Price Trends and Market Dynamics
The price of wines from "unfriendly" countries is rising more sharply compared to those from South Africa and Latin America. European wines have seen a price hike of over 30%, whereas South American and South African wines have increased by 17%. Lower import duties on wines from "friendly" countries have played a role in this trend, though rising logistics costs and Russia’s high key interest rate have also contributed to price growth across the board.
Shifting Consumer Preferences
With South American and South African wines experiencing double- and triple-digit growth in sales, Russian consumers are increasingly turning to these regions for quality alternatives to traditional European wines. Chilean wines have seen a 91% increase in sales volume over the past year, while South African wines have skyrocketed by 129% in sales volume. This shift marks a significant transformation in Russia’s wine market, where traditional strongholds like France and Italy are gradually ceding ground to emerging competitors from the Southern Hemisphere.
As market dynamics continue to evolve, it remains to be seen whether these trends will solidify into long-term consumer preferences or if economic and geopolitical factors will once again reshape Russia’s wine import landscape.
Source: RBC Vino