Russia's wine industry has seen a notable resurgence in 2024, with sparkling wine production leading the charge.
According to the Federal Service for Control over Alcohol and Tobacco Markets, the production of sparkling wine from January to August 2024 increased by 31.6% compared to the same period in 2023. This translates to 9.2 million dal (decaliters) of sparkling wine produced in 2024, compared to just 7 million dal the previous year. This increase marks a significant recovery for the sector, which had experienced a decline in production during the same period in 2022.
A Look at the Numbers
The increase in sparkling wine production is part of a broader trend in Russia’s alcohol industry, which has seen overall growth despite challenges in recent years. In 2023, the sparkling wine sector saw a dip, producing 7 million dal, down from 7.5 million dal in 2022. However, 2024 marks a turnaround, with an impressive 31.6% growth in the first eight months of the year.
Overall, Russia’s wine production also saw a 9.5% increase, reaching 21.3 million dal in 2024. This growth reflects the expansion of both sparkling and still wine production, as well as an uptick in liqueur wine output. In fact, liqueur wine production surged by 57.3% in 2024, totaling 825 thousand dal over the same eight-month period.
Surge in Alcoholic Beverages
In addition to sparkling wine, other alcoholic beverages have also contributed to the growth of Russia’s alcohol industry. From January to August 2024, the total volume of all alcoholic products, excluding beer, cider, perry, and mead, increased by 3.2%, reaching 116.9 million dal.
Among the strongest performers were liqueurs and vodka products, which saw a remarkable growth of 29.1%, with production reaching 10.7 million dal. Cognac production also rose significantly, increasing by 17.8% to 5.9 million dal. Vodka production, a staple of the Russian alcohol industry, saw a smaller but still notable increase of 2.7%, totaling 48.4 million dal.
Decline in Low-Alcohol and Grape-Containing Products
While the overall trend in Russia's alcoholic beverage market is positive, certain categories have experienced a decline. Low-alcohol products saw the steepest drop, with production decreasing by 32.1% to 8.9 million dal. Grape-containing products without ethyl alcohol also saw a sharp reduction, falling by 36.2% to 184 thousand dal.
Interestingly, products containing ethyl alcohol saw a significant boost in production. In 2024, these products saw a more than 50% increase, reaching 38.3 thousand dal, underscoring the dynamic nature of Russia’s alcohol market.
Industry Outlook
In 2023, the Russian sparkling wine sector faced challenges, with a 13% decrease in production year-on-year. Overall, the total production of grape, sparkling, and liqueur wines (excluding bulk wine) fell by 10%, reaching 45 million dal. This drop reflected broader economic and supply chain issues that impacted production capacity.
However, 2024 has shown a marked shift. According to National Credit Ratings LLC, there is a growing trend toward recovery in wine production, with producers focusing more on still, sparkling, and liqueur wines. The data suggests that despite the earlier downturn, Russian winemakers are finding ways to adapt and expand, particularly in the sparkling wine sector.
Source: RBC Wine