Grape wine spirits market in Finland

Earlier Report Observations

In 2018, the alcohol law reform allowed the sale of beverages up to 5.5% ABV in grocery stores while maintaining Alko's monopoly on spirits, and a 5% increase in excise taxes on strong alcohol added pressure on consumers. By 2019, the grape wine spirits market volume fell to 2 011 thousand liters, aligning with a trend of declining consumption of spirits compared to wine and beer. In 2020, the market volume temporarily rose to 2 935 thousand liters.

The sharp drop to 1 478 thousand liters in 2021 was driven by alcohol excise tax increases in 2019 and 2021, as well as shifts in consumer behavior during the COVID-19 pandemic when traveler imports were replaced by domestic consumption. Further decline to 1 370 thousand liters in 2022 occurred amid growing interest in non-alcoholic and low-alcohol alternatives and the emergence of new segments like hybrid drinks and bottled classic cocktails.

Market volume continued to shrink to 1 222 thousand liters in 2023, with clear vodkas remaining the most popular spirits category. In 2024, new excise and VAT increases effective at the start of the year led to an additional decrease to 1 175 thousand liters, as sales of spirits in Alko fell due to the largest tax hike.

Production grape wine spirits in Finland

In value, 2017-2020, K $ US

Finland's grape wine spirits production has increased for the third consecutive year. In 2020, the output was valued at 1 544 thousand US dollars, marking a 45.5% rise compared to 2019. From 2017 to 2020, production surged by 770.7%, which translates to an annualized growth rate of 105.7%.

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

In kind, 2017-2020, K l

Finland's grape wine spirits production has grown for the third year in a row. In 2020, the country produced 334.0 thousand liters, up by 42.7% from the previous year. Between 2017 and 2020, production expanded by 703.8%, averaging an annualized increase of 100.3%.

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

Exports grape wine spirits from Finland

Exports in kind, K l

In 2020, Finland's grape wine spirits exports amounted to 205 thousand liters, down by 42.9% compared to 2019. The peak was recorded in 2019 at 359 thousand liters, with the largest increase of 25.2% also occurring that year. From 2017 to 2020, exports fell by 42.3%, representing an annualized decline of 16.7%.

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

From 2017 to 2020, the three largest markets for Finland's grape wine spirits exports in volume terms were Sweden, Estonia, and Russia. Together, they accounted for 79.9% of total export flows.

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

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

Exports in value, K $ US

Finland's grape wine spirits exports have declined for the second consecutive year. In 2020, exports reached 3 387 thousand US dollars, a reduction of 28.3% from 2019. The highest value was recorded in 2018 at 5 799 thousand US dollars, which also saw the largest increase of 0.4%. Between 2017 and 2020, exports decreased by 41.4%, with an annualized rate of decline of 16.3%.

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

During 2017–2020, Estonia, the Netherlands, and Russia consistently led Finland's grape wine spirits exports in value terms. Estonia accounted for 35.2%, the Netherlands for 20.7%, and Russia for 16.5% of total exports, collectively making up 72.4% of all flows.

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

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

Imports grape wine spirits to Finland

Imports in kind, K l

The market for grape wine spirits imports into Finland showed notable fluctuations from 2017 to 2020. Imports reached their lowest point in 2017 and peaked in 2020, with a twofold difference between these years. In 2020, deliveries totaled 2 806 thousand liters, a sharp increase of 31.4% from the previous year. The largest decline occurred in 2019 at 16.3%, while the largest increase was in 2018 at 77.8%.

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

From 2017 to 2020, France dominated Finland's grape wine spirits imports in volume terms, holding a share of 94.6% of total flows.

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

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

Imports in value, K $ US

Finland's imports of grape wine spirits have fallen for the third year in a row. In 2020, imports were valued at 26 064 thousand US dollars, a moderate drop of 5.1% from the previous year. Between 2017 and 2020, imports decreased by 15.8%, equating to an annualized decline of 5.6%.

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

In the period 2017–2020, Finland's imports of grape wine spirits in value terms were heavily concentrated on France, which accounted for 95.4% of total flows.

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

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