Saturated monohydric alcohols market in Russia

Earlier Report Observations

From 2018 to 2020, the market volume of saturated monohydric alcohols in Russia decreased from 2.8 million tons to 2.6 million tons. This decline was driven by tightening state regulation, including new labeling requirements for alcoholic products introduced in July 2018, which strengthened control over alcohol circulation. In 2019, sales of denatured ethyl alcohol continued to shrink due to increased taxation. The COVID-19 pandemic in 2020 temporarily disrupted supply chains and affected consumer behavior, contributing to a further reduction in domestic consumption.

The market began to recover in 2021, with volume rising to 2.8 million tons, supported by the easing of post-pandemic restrictions and the launch of new production capacities, for instance for isopropyl alcohol, which reduced import dependence. In 2022, growth accelerated, and market volume reached 3 million tons. This jump was due to import substitution, an increase in legal alcohol production, and the Ministry of Industry and Trade's decision to allow parallel imports of alcoholic beverages, which expanded market supply. Industry consolidation, including the establishment of the company Spirt Rus, which united several large plants, also strengthened domestic production.

In 2023, market volume fell to 2.7 million tons, contrasting with the overall recovery of the alcohol market where sales of strong drinks were growing. Nevertheless, by 2024, consumption of saturated alcohols increased again, exceeding 3 million tons, against the backdrop of tighter labeling and accounting requirements, as well as shifts in consumer preferences towards strong and premium alcoholic products.

Production saturated monohydric alcohols in Russia

In kind, 2018-2021, K t

In 2021, Russia produced 4 796 K t of saturated monohydric alcohols, showing a slight increase of 1.7% compared to the previous year. Over the period from 2018 to 2021, production grew by 2.2%, with an average annual growth rate of 0.7%. The highest production level was recorded in 2019 at 4 824 K t, which also saw the largest increase of 2.8%. In contrast, 2020 experienced the most significant decline, with production dropping by 2.3%.

Annual dynamics of production in Russia in kind, 2018-2021, K t

Exports saturated monohydric alcohols from Russia

Exports in kind, K t

Exports of saturated monohydric alcohols from Russia declined for the second consecutive year. In 2021, exports reached 1 984 K t, marking a decrease of 7.9% year-on-year. Over the 2018-2021 period, exports overall increased by 2.4%, with a compound annual growth rate of 0.8%. The peak export volume was in 2019 at 2 181 K t, which also saw the largest increase of 12.6%.

Annual dynamics of product's exports from Russia in kind, 2018-2021, K t

From 2018 to 2021, Finland, Poland, and the Netherlands were the key partners for Russia's exports of saturated monohydric alcohols in volume terms. Finland accounted for 42.4% of exports, Poland for 16.7%, and the Netherlands for 8.1%. Together, these three countries represented 67.2% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Russia in kind, 2018-2021

Exports in value, M $ US

The market exhibited volatility during the observed period. The lowest export value was recorded in 2020 at 415.1 M $ US, which also saw the largest decline of 26.3%. In contrast, 2021 reached the highest value at 728.0 M $ US, showing a sharp increase of 75.4% compared to the previous year. The difference between the peak in 2021 and the trough in 2020 was 1.8 times.

Annual dynamics of product's exports from Russia in value, 2018-2021, M $ US

From 2018 to 2021, Finland, Poland, and Slovakia emerged as the main markets for Russia's exports of saturated monohydric alcohols in value terms. Finland held a 36.9% share, Poland 16.8%, and Slovakia 8.2%. Collectively, these three countries accounted for 61.9% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Russia in value, 2018-2021

Imports saturated monohydric alcohols to Russia

Imports in kind, K t

After two years of growth, imports of saturated monohydric alcohols into Russia declined. In 2021, import volume stood at 44 K t, representing a solid reduction of 21.5% from the previous year. Over the 2018-2021 period, imports increased by 51.1%, equating to an annualized growth rate of 14.8%. The largest increase occurred in 2019 at 63.4%, while the peak import volume was in 2020 at 56 K t.

Annual dynamics of product's imports to Russia in kind, 2018-2021, K t

Between 2018 and 2021, Germany, China, and the United States were the top suppliers of saturated monohydric alcohols to Russia in volume terms. Germany accounted for 29.6% of imports, China for 20.3%, and the United States for 9.9%. Together, these three countries made up 59.9% of total import flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Russia in kind, 2018-2021

Imports in value, M $ US

Following a two-year rise, imports of saturated monohydric alcohols into Russia declined. In 2021, imports amounted to 70.7 M $ US, indicating a reduction of 11.4% compared to 2020. Over the 2018-2021 period, imports increased by 81.3%, with an annualized growth rate of 21.9%. The largest increase was recorded in 2020 at 68.8%, which also saw the peak import value of 79.8 M $ US.

Annual dynamics of product's imports to Russia in value, 2018-2021, M $ US

Throughout 2018-2021, Germany, China, and the United States played leading roles in Russia's imports of saturated monohydric alcohols in value terms. Germany held a 28.8% share, China 22.7%, and the United States 10.7%. Jointly, these three countries accounted for 62.2% of total import flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Russia in value, 2018-2021