Grape wine market in Armenia

Earlier Report Observations

The Armenian wine market expanded in 2019, with production rising by 31% to 12.8 million liters and market volume growing 37% to 10.4 million liters. This surge was driven by the revival of winemaking since the 2000s, backed by state support through the Foundation of Viticulture and Winemaking, and research into local grape varieties. Additionally, the launch of the Wines of Armenia online platform in 2019 opened access to European markets, boosting export opportunities.

In 2020, production fell 16% to 10.7 million liters and market volume dropped 15% due to decreased demand and export difficulties, particularly on the key Russian market. Issues with grape harvesting and payments to farmers also hampered production. However, a new law regulating viticulture and winemaking, effective June 2020, began improving industry standards. Recovery followed in 2021: production rebounded by 20% to 12.8 million liters and market volume grew 16%, largely thanks to a 30% jump in exports to Russia and the adoption of new quality-enhancing technologies.

During 2022, despite tighter labeling and packaging requirements and rising consumer interest in organic wines, market volume contracted by 21% to 8.2 million liters, while production dipped slightly by 7% to 11.9 million liters. Exports, however, continued to expand, surging 52% in volume. By 2023, production jumped another 20% to 14.3 million liters and market volume soared 37% to 11.2 million liters, reaching a new peak.

Production grape wine in Armenia

In kind, 2017-2020, K l

Top producers of grape wine, 2017-2020

World map of production of grape wine, 2017-2020

Armenia's grape wine production volume declined after two consecutive years of growth. In 2019, production reached its peak at 12 750 thousand liters, marking a significant increase of 31.8% from the previous year. However, in 2020, production fell to 10 656 thousand liters, representing a sharp year-on-year decrease of 16.4%. Over the entire 2017-2020 period, production grew by 20.4%, with an average annual growth rate of 6.4%.

Annual dynamics of production in Armenia in kind, 2017-2020, K l

In value, 2017-2020, K $ US

Armenia's grape wine production value declined after two years of consecutive increases. In 2019, production value peaked at 54 235 thousand US dollars, showing a substantial rise of 47.7% compared to the previous year. In 2020, however, the value dropped to 35 016 thousand US dollars, a significant decrease of 35.4% year-on-year.

Annual dynamics of production in Armenia in value, 2017-2020, K $ US

Exports grape wine from Armenia

Exports in kind, K l

Armenia's grape wine exports in volume terms declined in 2020. Shipments totaled 2 461 thousand liters, down 11.7% from the previous year. The peak was recorded in 2019 at 2 786 thousand liters, which represented a 12.0% increase from 2018. Over the 2017-2020 period, exports decreased by 11.3%, with an average annual decline of 3.9%.

Annual dynamics of product's exports from Armenia in kind, 2017-2020, K l

From 2017 to 2020, Russia was the dominant market for Armenian grape wine exports in volume terms, accounting for 76.4% of total shipments. Other trading partners held relatively smaller shares during this period.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Armenia in kind, 2017-2020

Exports in value, K $ US

Armenia's grape wine exports in value terms saw a significant decline in 2020. Export revenues totaled 8 087 thousand US dollars, down 31.8% from the previous year. The highest value was recorded in 2019 at 11 851 thousand US dollars, representing a 25.4% increase from 2018. Between 2017 and 2020, export value decreased by 25.1%, with an average annual decline of 9.2%.

Annual dynamics of product's exports from Armenia in value, 2017-2020, K $ US

During the 2017-2020 period, Russia was the leading market for Armenian grape wine exports in value terms, accounting for 69.0% of total export revenues. The United States followed with 8.7%, and Switzerland with 1.9%. Together, these three markets represented 79.5% of Armenia's total grape wine export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Armenia in value, 2017-2020

Imports grape wine to Armenia

Imports in kind, K l

Armenia's grape wine imports in volume terms increased for the second consecutive year in 2020. Imports reached 698 thousand liters, up 54.7% from 2019. The lowest volume was recorded in 2018 at 390 thousand liters, which represented a 21.9% decrease from 2017. Over the 2017-2020 period, imports grew by 39.9%, with an average annual increase of 11.9%.

Annual dynamics of product's imports to Armenia in kind, 2017-2020, K l

From 2017 to 2020, Spain was the largest supplier of grape wine to Armenia in volume terms, accounting for 34.2% of total imports. Italy followed with 16.5%, and Ukraine with 14.0%. Together, these three countries supplied 64.7% of Armenia's grape wine imports by volume.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Armenia in kind, 2017-2020

Imports in value, K $ US

Armenia's grape wine imports in value terms increased in 2020 after two years of decline. Import value reached 1 597 thousand US dollars, up 5.8% from 2019. The lowest value was recorded in 2019 at 1 509 thousand US dollars, following an 8.6% decrease in 2018. Over the 2017-2020 period, import value decreased by 4.0%, with an average annual decline of 1.3%.

Annual dynamics of product's imports to Armenia in value, 2017-2020, K $ US

During the 2017-2020 period, Italy was the leading supplier of grape wine to Armenia in value terms, accounting for 32.9% of total import value. France followed with 30.0%, and Spain with 12.5%. Together, these three countries supplied 75.4% of Armenia's grape wine imports by value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Armenia in value, 2017-2020