Grape wine spirits market in Romania

Earlier Report Observations

In 2018, the market volume of grape wine or marc spirits in Romania reached 19 338 thousand liters, supported by the entry and consolidation of new local players, such as Stalinskaya, Unirea, and Cava d’Oro, in the vodka and brandy segments, as well as a shift in consumer preferences towards stronger spirits, particularly the growing consumption of vodka. However, in 2019 the market contracted to 13 923 thousand liters, linked to high fiscal pressure: excise duties on spirits reached €129.62 million, and over half of the market remained untaxed, creating competition with the black market. Despite the COVID-19 pandemic in 2020, which forced a migration of sales from HoReCa to online channels and led to a temporary decline in retail sales, the market volume recovered to 14 486 thousand liters. By 2021, growth continued to 15 988 thousand liters, sustained by the ongoing dominance of local brands and maintained consumption of vodka and brandy as key demand drivers.

In 2022, the market volume peaked at 16 646 thousand liters, although the industry faced an increase in the alcohol excise duty in August, which caused a decline in brandy sales for specific producers, along with rising raw material and energy costs putting pressure on prices. Simultaneously, a premiumization trend emerged, focusing on quality and taste education, contributing to the market's value growth. In 2023, volume dropped to 14 342 thousand liters, coinciding with reports of a 25% sales decrease in April for major players like Pernod Ricard România, as well as the ongoing impact of fiscal policy: excise duties fell by 4% in the first ten months, despite previous hikes. By 2024, the market slightly recovered to 14 779 thousand liters, while the industry advocated for postponing further excise increases, arguing that fiscal pressure—accounting for up to 60% of the final price—undermines local producers' competitiveness and fuels the black market.

Production grape wine spirits in Romania

In value, 2017-2020, K $ US

Romania's grape wine spirits production has declined for the second consecutive year. In 2020, output was valued at 27 348 K $ US, marking a 17.4% decrease compared to the previous year. Production fell by 38.1% between 2017 and 2020, which translates to an annualized decline of 14.8%. The highest value was recorded in 2018 at 52 979 K $ US, with the largest increase that year of 19.9%. The most significant drop occurred in 2019, when production fell by 37.5%.

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

In kind, 2017-2020, K l

In 2020, Romania produced 14 208 K l of grape wine spirits, showing a modest year-over-year increase of 6.2%. However, over the period from 2017 to 2020, production decreased by 13.5%, with a compound annual growth rate of -4.7%. The lowest volume was recorded in 2019 at 13 379 K l, which saw the largest decline of 29.4%. In contrast, the peak was in 2018 with 18 945 K l, when production rose by 15.3%.

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

Exports grape wine spirits from Romania

Exports in kind, K l

Romania's exports of grape wine spirits have increased for the third consecutive year. In 2020, exports reached 159.6 K l, surging by 487.7% compared to the previous year. Between 2017 and 2020, exports grew by 1 791.6%, equating to an annualized rate of 166.4%.

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

From 2017 to 2020, France, Belgium, and Germany were the main destinations for Romania's grape wine spirits exports in volume terms. France accounted for 41.3% of exports, Belgium for 15.6%, and Germany for 10.5%. Together, these three countries absorbed 67.4% of total exports.

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

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

Exports in value, K $ US

In 2020, the value of grape wine spirits exports from Romania stood at 1 066 K $ US, up by 62.0% compared to 2019. Over the period from 2017 to 2020, exports increased by 47.7%, with an annualized growth rate of 13.9%. The lowest value was recorded in 2019 at 658 K $ US, which also saw the largest decline of 15.4%.

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

Between 2017 and 2020, the Netherlands, France, and Germany were the top markets for Romania's grape wine spirits exports in value terms. Together, they accounted for 61.6% of total export value.

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

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

Imports grape wine spirits to Romania

Imports in kind, K l

In 2020, Romania's imports of grape wine spirits amounted to 438.2 K l, representing a substantial decrease of 23.3% from the previous year. Over the period from 2017 to 2020, imports fell by 6.7%, with a compound annual growth rate of -2.3%. The lowest volume was in 2018 at 412.0 K l, while the peak was in 2019 at 571.2 K l, which saw the largest increase of 38.6%.

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

From 2017 to 2020, France, Spain, and Germany were the largest sources of grape wine spirits imports into Romania in volume terms. France contributed 31.8% of imports, Spain 27.1%, and Germany 11.1%. Collectively, these three countries accounted for 69.9% of total import flows.

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

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

Imports in value, K $ US

Romania's imports of grape wine spirits have risen for the third consecutive year. In 2020, import value was recorded at 8 631 K $ US, indicating a solid gain of 16.9% compared to 2019. Over the period from 2017 to 2020, imports increased by 81.4%, with a compound annual growth rate of 21.9%.

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

Between 2017 and 2020, France, Germany, and the Netherlands dominated Romania's grape wine spirits imports in value terms. France accounted for 46.2% of imports, Germany for 13.0%, and the Netherlands for 12.9%. Together, they comprised 72.1% of total import flows.

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

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