Vermouth and other flavoured wine market in Azerbaijan

Earlier Report Observations

The Azerbaijani market for vermouth and other flavoured wine began the period at 7 240 thousand liters in 2018, supported by state programs to develop viticulture and winemaking, which aimed to increase vineyard area and modernize production. The market volume then fell sharply to 3 565 thousand liters in 2019. A recovery followed in 2020, with the market reaching 4 751 thousand liters, as the COVID-19 pandemic altered supply chains and consumer preferences.

From 2021, growing consumer interest, particularly among youth, in varied wine types including flavoured wines and vermouth, along with the emergence of new segments like organic wines, drove the market to 4 963 thousand liters. In 2022, the market saw a slight adjustment to 4 842 thousand liters, while the development of large-scale winemaking blending French and local grape varieties and the entry of new players such as Chabiant Winery, which launched organic wine production, provided underlying support. A significant rise to 5 836 thousand liters occurred in 2023, fueled by global trends like vermouth's growing popularity in mixology and increased demand for low-alcohol cocktails.

Production vermouth and other flavoured wine in Azerbaijan

In kind, 2018-2021, K l

From 2018 to 2021, Azerbaijan ranked sixth globally in production volume for vermouth and other flavoured wines.

Top producers of vermouth and other flavoured wine, 2018-2021

World map of production of vermouth and other flavoured wine, 2018-2021

Azerbaijan's production of vermouth and other flavoured wines grew for the second consecutive year. In 2021, the country produced 4 943 K l, marking a 4.3% increase from the previous year. However, over the 2018-2021 period, overall production fell by 31.7%, with a compound annual growth rate of -11.9%. The lowest production level was in 2019 at 3 561 K l, which saw the largest decline of 50.8%. In contrast, 2020 recorded the biggest increase at 33.1%.

Annual dynamics of production in Azerbaijan in kind, 2018-2021, K l

Exports vermouth and other flavoured wine from Azerbaijan

Exports in kind, l

The export market for vermouth and other flavoured wines from Azerbaijan showed significant volatility during these years. Exports peaked in 2019 at 5 909 l, then dropped sharply to a low of 818 l in 2020, representing an 86.2% decrease from the previous year and a 7.2-fold variation between the two years. The largest increase occurred in 2019 at 28.8%.

Annual dynamics of product's exports from Azerbaijan in kind, 2018-2021, l

From 2018 to 2021, Russia was the primary buyer of vermouth and other flavoured wines from Azerbaijan, accounting for 1.6% of total exports in volume.

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

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

Exports in value, K $ US

Export values for vermouth and other flavoured wines from Azerbaijan experienced irregular changes, reflecting a volatile market. The highest value was recorded in 2019 at 30.9 K $ US, while the lowest was in 2020 at 3.5 K $ US, showing an 8.8-fold gap. In 2020, exports fell sharply by 88.7% compared to the previous year. The largest increase occurred in 2019 at 53.6%.

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

Between 2018 and 2021, Russia remained the main destination for Azerbaijan's vermouth and other flavoured wine exports in value terms, representing 2.3% of total flows.

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

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

Imports vermouth and other flavoured wine to Azerbaijan

Imports in kind, l

Imports of vermouth and other flavoured wines into Azerbaijan rose for the third consecutive year. In 2021, imports totalled 19 533 l, a 67.6% increase from 2020. Over the 2018-2021 period, imports surged by 387.8%, equivalent to an annualized growth rate of 69.6%.

Annual dynamics of product's imports to Azerbaijan in kind, 2018-2021, l

From 2018 to 2021, Italy and France dominated imports of vermouth and other flavoured wines into Azerbaijan in volume, jointly making up 94.2% of total flows, with the remainder distributed among smaller markets.

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

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

Imports in value, K $ US

Import values for vermouth and other flavoured wines into Azerbaijan showed irregular fluctuations, indicating market volatility. The low point was in 2018, with the high in 2021 at 106.4 K $ US, representing a 97.4% jump from 2020 and a 5.4-fold variation over the period. The largest decline was in 2020 at 5.1%, while the biggest increase was in 2019 at 190.0%.

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

During 2018-2021, Italy held the dominant position in imports of vermouth and other flavoured wines into Azerbaijan in value terms, accounting for 77.8% of total flows, with the rest shared among various smaller destinations.

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

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