Grape wine market in Western Asia

Earlier Report Observations

From 2018 to 2023, the grape wine market in Western Asia saw significant volume changes, starting at 175 million liters in 2018 and reaching 179 million liters in 2023. The sharp drop to 138 million liters in 2020 occurred alongside the entry of new players and boutique producers, while the recovery to 158 million liters in 2021 was supported by the establishment of new production facilities like the integrated plant in Muğla and updated winery permitting regulations. The market dipped slightly to 149 million liters in 2022 following an increase in special consumption tax rates, which raised costs and affected consumer demand, before rebounding strongly in 2023.

Production trends mirrored the market, with output peaking at 257 million liters in 2019. The sector contended with persistent challenges including a high tax burden, informal production, and raw material constraints due to a historical focus on table and dried grape varieties. The closure of university wine production technology departments threatened long-term expertise, though adoption of technological innovations like smart irrigation and digital control systems helped improve grape quality and yield.

Regulatory and policy measures shaped the market environment. The introduction of mandatory production and sales reporting in 2021 increased transparency, and the 2022-2026 Viticulture Sector Policy Document set targets to boost wine grape production and reduce informality. These steps, combined with ongoing regional branding initiatives, provided a framework for the market's structure and supported its post-2020 recovery.

Production grape wine in Western Asia

In kind, 2017-2020, M l

Top producers of grape wine, 2017-2020

World map of production of grape wine, 2017-2020

Western Asia's grape wine production saw growth for two consecutive years before declining. In 2019, production reached its peak at 257 million liters, representing an 18.1% increase from the previous year. However, in 2020, production fell to 207 million liters, marking a 19.6% decrease compared to 2019. Over the entire 2017-2020 period, production increased by 9.4%, which translates to an average annual growth rate of 3.0%.

Annual dynamics of production in Western Asia in kind, 2017-2020, M l

In value, 2017-2020, M $ US

Grape wine production in Western Asia experienced a two-year upward trend before declining. In 2018, production value recorded its largest increase of 22.8%. The peak was reached in 2019 at 707.2 million US dollars. However, in 2020, production value dropped to 572.0 million US dollars, showing a significant 19.1% decrease from the previous year. From 2017 to 2020, production value grew by 14.4%, equivalent to an annualized rate of 4.6%.

Annual dynamics of production in Western Asia in value, 2017-2020, M $ US

Exports grape wine from Western Asia

Exports in kind, M l

After two years of growth, grape wine exports from Western Asia declined. In 2019, exports reached their highest level at 141.2 million liters, with an 18.6% increase from the previous year. In 2020, exports fell to 133.8 million liters, representing a 5.2% decrease compared to 2019. Over the 2017-2020 period, exports increased by 20.8%, corresponding to an average annual growth rate of 6.5%.

Annual dynamics of product's exports from Western Asia in kind, 2017-2020, M l

From 2017 to 2020, Russia, the United States, and Ukraine were the primary destinations for Western Asia's grape wine exports in volume terms. Russia accounted for 36.2% of exports, the United States for 19.2%, and Ukraine for 6.4%. Together, these three countries represented 61.8% of total export flows.

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

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

Exports in value, M $ US

Following two years of expansion, the value of grape wine exports from Western Asia declined. In 2019, export value peaked at 388.5 million US dollars, showing a 15.7% increase from the previous year. In 2020, export value dropped to 370.3 million US dollars, marking a 4.7% decrease compared to 2019. Between 2017 and 2020, export value grew by 26.3%, equivalent to an annualized rate of 8.1%.

Annual dynamics of product's exports from Western Asia in value, 2017-2020, M $ US

Between 2017 and 2020, Russia, the United States, and China were the leading destinations for Western Asia's grape wine exports in value terms. Russia accounted for 37.2% of export value, the United States for 10.8%, and China for 6.4%. Collectively, these three markets represented 54.5% of total export flows.

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

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

Imports grape wine to Western Asia

Imports in kind, M l

Grape wine imports into Western Asia showed mixed trends during the 2017-2020 period. In 2019, imports recorded their largest increase of 15.3%. However, in 2020, imports dropped to 65.1 million liters, representing a substantial 24.7% decrease compared to the previous year. Over the entire period, imports decreased by 24.7%, which translates to an average annual decline of 9.0%.

Annual dynamics of product's imports to Western Asia in kind, 2017-2020, M l

From 2017 to 2020, grape wine imports into Western Asia came from a diverse range of markets. France accounted for 25.5% of import volume, Italy for 14.3%, and South Africa for 9.6%. Together, these three countries represented 49.4% of total imports, while numerous smaller markets contributed the remaining 50.6%.

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

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

Imports in value, M $ US

Grape wine imports into Western Asia declined for two consecutive years. In 2018, imports reached their peak at 445.9 million US dollars, with a 5.1% increase from the previous year. In 2020, imports fell to 264.4 million US dollars, marking a sharp 39.0% decrease compared to 2019. Over the 2017-2020 period, imports decreased by 37.7%, equivalent to an annualized decline of 14.6%.

Annual dynamics of product's imports to Western Asia in value, 2017-2020, M $ US

Throughout 2017-2020, France, Italy, and Australia formed the core group of markets for Western Asia's grape wine imports in value terms. France accounted for 49.1% of import value, Italy for 11.6%, and Australia for 6.7%. Together, these three countries represented 67.3% of total import flows.

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

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