While the Russian alcohol market continues to contract across nearly all major categories, wine stands out as the only segment experiencing growth, according to the latest data from Rosalkogoltobakkontrol, as reported by RBC Vino.
This shift occurs against a backdrop of declining production volumes in vodka, cognac, low-alcohol beverages, and liqueur wines—highlighting a significant transformation in Russian alcohol consumption trends.
Wine Shows Strong Growth in a Shrinking Market
In the first half of 2025, still wine production rose by 12.4% to reach 17.6 million decaliters, while sparkling wine production jumped 18.5% to 7.2 million decaliters. This robust growth in both segments bucks the broader market trend and suggests a shift in consumer preferences, possibly driven by wine’s reputation as a more moderate, lifestyle-oriented choice.
The only wine-related exception was liqueur wines, which saw a 9.6% decrease in production to 644,900 decaliters. The category’s decline has been directly linked to a sharp increase in excise taxes on ethyl alcohol, which forms the basis of fortified and liqueur wines.
Excise Taxes Hit Fortified Wines Hardest
The Russian State Duma passed a law in October 2024 that sharply raised excise duties on alcohol, with the rate for anhydrous ethyl alcohol increasing to 740 rubles per liter in 2025, and planned increases to 770 rubles in 2026 and 801 rubles by 2027. This is up from 643 rubles in 2024.
According to Alexander Stavtsev, Vice President of the Association of Retail Market Experts, this tax hike has rendered the production of inexpensive fortified wines economically unviable, especially affecting ordinary port-style and Cahors wines. “Premium liqueur wines can still find their buyer, but the entry-level segment is no longer profitable,” Stavtsev explains.
Broader Declines Across the Alcohol Market
Despite wine’s success, the broader picture remains bleak. The total alcohol production in Russia declined by 16.1% year-over-year, a drop of 14.1 million decaliters compared to the same period in 2024.
The steepest drops were observed in:
- Low-alcohol products: down 91.6%
- Fruit-based alcoholic drinks: down 84.7%
- Grape-based drinks with/without ethanol: down by 60.5–73.2%
Even Russia’s traditional staples have suffered:
- Vodka: down 10.9%, to 31.3 million dal
- Cognac: down 17%, to 3.9 million dal
- Liquor and vodka-based drinks: down 0.5%, to 8 million dal
Market Consolidation and Production Freezes
Andrey Moskovsky, President of the Guild of Alcohol Market Experts “Alcopro”, suggests that vodka and cognac may have reached their peak in sales. He notes that producers are now reluctant to overproduce, as unsold stock ties up working capital. He also anticipates further consolidation in the vodka industry, with smaller regional producers likely to exit the market due to rising costs and stagnant sales.
Premium and Niche Spirits Struggle for Visibility
Production in the broader “other alcohol” category—which includes whiskey, gin, tequila, and rum—has also fallen. However, Stavtsev argues this masks some underlying trends. For instance, categories like gin, tequila, and craft whiskey are experiencing rapid growth from a low base, but their numbers are diluted within broader statistical groupings, making it difficult to discern their momentum.
A Shift Toward Wine—and a Glimpse into the Future
The resilience of wine amidst industry contraction may indicate a longer-term shift in Russian drinking culture, moving away from strong spirits toward more nuanced, moderate alcohol consumption. However, experts caution that the sustainability of this trend depends on affordability, access to quality wines, and continued consumer education.
In a challenging market beset by rising taxes, inflation, and shifting demand, wine has carved out a rare position of growth—though even this success is tempered by the vulnerability of sub-categories like fortified wines. As production contracts across the board, wine may offer a path forward—provided the industry can adapt to new economic realities and evolving consumer tastes.
Source: RBC Vino