To date, Russia is one of the world’s most promising markets for wine consumption. Even amid the global economic crisis, the Russian market after falling in 2009 by about 10%, since 2010 started to increase again in contrast to the majority of the countries.
A little break in the growth in 2011 was due to the reforms of the alcohol market and problems in the work of producers and importers. Analysts estimate since 2012 the market may continue to grow.
| Type of products |
1980 |
2000 |
2004-2005 (average) |
2007 |
2008 |
2009 |
2010 |
2011 |
| Still wine |
19,37 |
2,35 |
5,26 |
5,46 |
5,49 |
5,1 |
5,78 |
5,67 |
| Sparkling wine |
0,5 |
0,476 |
1,0 |
1,59 |
1,609 |
1,53 |
1,73 |
1,8 |
| TOTAL |
19,87 |
2,826 |
6,26 |
7,05 |
7,10 |
6,23 |
7,51 |
7,47 |
Table 1. Wine consumer market of Russia in 1980, 2000, 2004 – 2011, liters.
In the Soviet period from 1960 till 1990 the wine consumption in Russia was mainly wine – vodka, with an absolute predominance in the consumption of wine. Wine consumption patterns were shaped by government policy. The area of the vineyards in Russia in 1985 was approximately 200,000 hectares. Since 1990 up to 2000 the consumption of wine was amounted 3 liters per capita per year. It was the most difficult economic period in the history of Russia in the last 60 years. With the growth of life standards and population incomes the consumption of wine started to grow: from 3 liters in 2000 to 6.5 in 2004 – 2005, to 7.42 liters in 2007 to 7.9 liters in 2011.
| Product |
2000 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
| Still wine |
340 |
698 |
732,5 |
726 |
774 |
778,8 |
743 |
815 |
793 |
| Sparkling wine |
69 |
131 |
152 |
163,2 |
227,8 |
228,5 |
213,7 |
255,2 |
265,3 |
| TOTAL |
409 |
829 |
884,5 |
953,8 |
1001,8 |
1007,3 |
956,7 |
1070,2 |
1058,3 |
Table 2. Volume of wine market in Russia (2000-2010), million liters.
| Product; product share on the market | 2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 | 2011 | |
| Still wine | Produced |
70,14% |
59,8% |
69,5% |
58,5% |
56% |
43,5% |
64,73% |
66,15% |
64,76% |
71,48% | 68,3% | 63,66% |
| Imported | 29,86% |
40,3% |
30,5% |
41,5% |
44% |
56,5% |
25,27% |
33,85% |
35,24% |
28,52% |
31,7% | 36,34% | |
| Sparkling wine | Produced |
97,1% |
94,4% |
93% |
90% |
91% |
91,3% |
94,5% |
94,4% |
90,9% |
90,73% | 87,36% | 82,85% |
| Imported | 2,9% |
5,6% |
7% |
10% |
9% |
8,7% |
5,5% |
5,6% |
9,1% |
9,27% |
12,64% | 17,15% | |
Table 3. The proportion between the domestic and imported wines on the Russian wine market in 2000 -2011.
The Russian market of wine consists of 3 parts:
- Russian wines from the Russian grape. Today Russia has about 70,000 hectares of vineyards;
- Russian wines made from imported bulk;
- Imported wine
The proportion of Russian and imported wines has changed during the last 11 years. Still wines: The share of imported wines increased in the period from 2000 to 2005 (from 30% to 56%). Then in 2006, we noticed a decline in imports by approximately 30%, and than a stabilization at this level up to the present. Sparkling wines: the share of imported sparkling wines is growing from 3% of the market in 2000 to 17% in 2011. The current portion of the Russian wine (still and sparkling) in the market is approximately 70 %.
| Product | 2000 | 2004 |
2005 |
2006 |
2007 | 2008 | 2009 | 2010 |
2011 |
Increase in 2011 to 2010 | Increase in 2011 to 2009 | Increase in 2011 to 2008 | Increase in 2011 to 2007 | Increase in 2011 to 2005 | Increase in 2011 to 2000 |
| Still wine | 238,5 | 391,3 |
320 |
470 |
512 | 503,4 | 502,5 | 540,8 |
478 |
-11,6 % | -5% | -5% | -6,7% | +22% | +100% |
| Sparkling wine | 67 | 121 |
141 |
155 |
215,6 | 208,2 | 194 | 223,5 |
220,3 |
-1,5% | +13,5% | +6% | +2,2% | +82% | +329% |
Table 4. Change in volume of wine production in Russia (2000-2011), million liters.
Russian wine production has made three leaps in its modern development, two – in quantity and one – in quality. From 1998 to 2004 there was rapid growth of volume of wine production. Then, after the fall of 2005 there was a new raise, and since that time so far has been a steady increase in wine production.
Since 2000, Russia dramatically increased the production of wine: still wine from 238.5 million liters in 2000 to 541 million liters in 2010 (record for 20 years), the fall in 2011 to 478 million liters associated only with the reform of enterprises and standing idle; ahead – a new growth; sparkling wines: from 67 million liters in 2000 to 223 million liters in 2011. Analysts estimate the production volume will continue to grow.
Since 2000, preparations began for the qualitative leap of the several companies, which led to the high results of a group of companies: Fanagoria, Myskhako, Abrau-Durso, Kuban-Vino, Aurora, Vedernikov Winery, Lefkadia etc. Over the past 7 years, Russian winemakers received more than 40 awards at prestigious tasting competitions of the world (such as International Wine & Spirit Competition (IWSC), International Wine Challenge, Decanter World Wine Awards, MUNDUS Vini, ect ). In addition, the 2011 there was a record harvest of grapes – more than 400 000 tonnes. Russia will gradually discontinue importing wine material, and it will use its own raw materials. Thus, the most promising for investment by foreign companies are investing in the local (Russian) viticulture and winemaking. At the same time imports of bottled wine in the coming years will also increase. Our wine market is bound to develop in contrast to the Asian markets. Unlike Asia where there’s high demand for expensive wines, especially prestigious reds, but there’s no mass-market, in Russia there will certainly be a future for the mass wine market for any type of wine.
The Russian government in recent years paid considerable attention to the development of wine industry. State authorities has already established a program for support of the wine industry in 2012-2020. Russian wines are coming into the world market, and participation for the second time in the exhibition LIWF 2012 confirms this.
| Product |
Market volume in 2000 |
Market volume in 2004 |
Market volume in 2005 |
Market volume in 2006 |
Market volume in 2007 |
Market volume in 2008 |
Market volume in 2009 |
Market volume in 2010 |
Market volume in 2011 |
| Still wines |
101,5 |
307,2 |
413 |
256,1 |
264 |
276,8 |
200,5 |
250,5 |
272,6 |
| Sparkling wines |
1,0 |
10,2 |
11 |
8,2 |
12,8 |
20,7 |
19,8 |
31,8 |
45,5 |
| TOTAL |
102,5 |
317,4 |
424 |
264,3 |
276,8 |
297,5 |
220,3 |
382,3 |
318,2 |
Table 5. Change in volume of imported wine market of Russia in 2000 -2011, million liters.
| Countries-importers |
Share of import in 2008 |
Share of import in 2009 |
Share of import in 2010 |
Share of import in 2011 |
| France |
17,72% |
18,68% |
21,09% |
22,39% |
| Italy |
7,42% |
9,87% |
12,55% |
14,39% |
| Spain |
9,70% |
11,42% |
13,30% |
14,32% |
| Germany |
9,39% |
10,57% |
10,20% |
10,93% |
| Bulgaria |
23,80% |
14,54% |
10,28% |
7,54% |
| Moldova |
10,86% |
12,56% |
10,38% |
6,59% |
| Ukraine |
3,88% |
4,63% |
4,66% |
6,12% |
| Chile |
4,98% |
6,00% |
6,29% |
5,68% |
| Abkhazia |
0,27% |
2,01% |
2,18% |
2,30% |
| Serbia |
0,46% |
1,15% |
1,34% |
1,45% |
| Argentina |
3,09% |
2,14% |
1,70% |
1,43% |
| USA |
1,11% |
1,29% |
1,07% |
1,31% |
| Azerbaijan |
0,67% |
0,53% |
0,75% |
1,24% |
| Hungary |
1,61% |
1,01% |
0,94% |
0,81% |
| South Africa |
0,86% |
0,97% |
0,82% |
0,78% |
| Australia |
0,60% |
0,47% |
0,52% |
0,53% |
| Portugal |
0,20% |
0,17% |
0,22% |
0,43% |
| Macedonia |
0,53% |
0,42% |
0,32% |
0,40% |
| Montenegro |
0,14% |
0,20% |
0,22% |
0,32% |
| Greece |
0,31% |
0,22% |
0,19% |
0,23% |
| Armenia |
0,13% |
0,15% |
0,27% |
0,19% |
| Cyprus |
0,36% |
0,33% |
0,19% |
0,16% |
| New Zealand |
0,07% |
0,07% |
0,09% |
0,11% |
| Israel |
0,05% |
0,08% |
0,08% |
0,11% |
| Uruguay |
0,12% |
0,05% |
0,11% |
0,07% |
| Austria |
0,04% |
0,04% |
0,05% |
0,05% |
| Romania |
0,57% |
0,16% |
0,09% |
0,04% |
| Uzbekistan |
0,04% |
0,03% |
||
| Croatia |
0,01% |
0,01% |
0,00% |
0,03% |
| Brazil |
0,24% |
0,16% |
0,02% |
0,02% |
| Slovenia |
0,00% |
0,01% |
0,01% |
0,01% |
Table 6.1 The share foreign countries-suppliers of wines
| Countries-importers | Share of country wine in the Russian wine market in 2011 |
| France | 7,562% |
| Italy | 4,859% |
| Spain | 4,835% |
| Germany | 3,691% |
| Bulgaria | 2,547% |
| Moldova | 2,226% |
| Ukraine | 2,067% |
| Chile | 1,917% |
| Abkhazia | 0,777% |
| Serbia | 0,489% |
| Argentina | 0,484% |
| USA | 0,442% |
| Azerbaijan | 0,420% |
| Hungary | 0,274% |
| South Africa | 0,263% |
| Australia | 0,178% |
| Portugal | 0,144% |
| Macedonia | 0,135% |
| Montenegro | 0,108% |
| Greece | 0,078% |
| Armenia | 0,065% |
| Cyprus | 0,055% |
| New Zealand | 0,038% |
| Israel | 0,035% |
| Uruguay | 0,022% |
| Austria | 0,018% |
| Romania | 0,014% |
| Uzbekistan | 0,010% |
| Croatia | 0,009% |
| Brazil | 0,005% |
| Slovenia | 0,002% |
| Total of foreign countries | 33,77% |
| Russia | 66,23% |
| 100,00% |
Table 6.2 The share countries- suppliers of wines in the in total imports to Russia 2008-2011. volume of the market (including Russian production).
Source: Russian wine market: inside and outside. Report by Asti group
Report done by the ASTI GROUP Exhibition Company, based on official data by Federal Customs Service, Federal Agency on Technical Regulating and Metrology (Rosstandart), the information portal of the Russian alcohol market HYPERLINK http://www.rusalcomarket.info www.rusalcomarket.info and the Research Center of the Federal and Regional Alcohol Markets (TSIFRRA).