Vermouth and other flavoured wine market in CIS

Earlier Report Observations

The market for vermouth and flavoured wines in the CIS grew from 24.5 million liters in 2018 to 35.8 million liters in 2023, driven primarily by increasing consumer demand for quality products. This rising interest stimulated producers to develop the segment, although the COVID-19 pandemic in 2020 temporarily disrupted logistics and consumer behavior, leading to a market contraction that year before recovery resumed.

Legislative support, particularly through Law 468 'On Viticulture and Winemaking,' which protected the category of fortified and flavoured wines by setting quality standards, encouraged improvements in production and bolstered consumer confidence. These factors, combined with a sustained shift in consumer preferences toward higher-quality, traditionally crafted offerings, supported the market's expansion to a record volume in 2023.

In 2024, the trend of import substitution gained momentum, with imports declining amid higher prices and a focus on domestic production. Producers intensified efforts to enhance local output and expand vineyard acreage, signaling a broader market shift toward domestically sourced vermouth and flavoured wines.

Production vermouth and other flavoured wine in CIS

In kind, 2017-2020, K l

Top producers of vermouth and other flavoured wine, 2017-2020

World map of production of vermouth and other flavoured wine, 2017-2020

In 2020, the CIS produced 11,587 thousand liters of vermouth and other flavored wines, representing a 22.5% increase compared to the previous year. Looking at the period from 2017 to 2020, production grew by 6.6%, which translates to an average annual growth rate of 2.2%. The lowest production level was recorded in 2019 at 9,458 thousand liters, with the largest decline of 16.5% also occurring that year.

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

In value, 2017-2020, K $ US

In 2020, the value of vermouth and other flavored wine production in the CIS reached 60,533 thousand US dollars, up 11.4% year-over-year. Over the 2017-2020 period, production value increased by 15.1%, with a compound annual growth rate of 4.8%. The highest value was recorded in 2018 at 69,350 thousand US dollars, which also saw the largest increase of 31.9%. In contrast, 2019 experienced the largest decline of 21.7%.

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

Exports vermouth and other flavoured wine from CIS

Exports in kind, K l

In 2020, the CIS exported 322 thousand liters of vermouth and other flavored wines, reflecting a significant decrease of 23.6% compared to the previous year. From 2017 to 2020, exports declined by 35.8%, equating to an average annual decrease of 13.7%. The largest drop occurred in 2018 at 24.7%, while 2019 saw the biggest increase of 11.5%.

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

Between 2017 and 2020, the United States, Ukraine, and Poland were the primary destinations for exports in volume terms. The United States accounted for 16.3% of exports, Ukraine for 10.4%, and Poland for 1.3%. Together, these three countries represented 28.0% of total export flows.

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

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

Exports in value, K $ US

In 2020, cross-border shipments of vermouth and other flavored wines from the CIS totaled 1,681 thousand US dollars, marking a sharp decline of 30.5% year-over-year. Over the 2017-2020 period, export value decreased by 30.7%, with an average annual decline of 11.5%. The largest increase was recorded in 2019 at 4.6%.

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

From 2017 to 2020, the United States, Ukraine, and Poland led the export structure in value terms. The United States accounted for 8.7% of export value, Ukraine for 4.5%, and Poland for 0.5%. Collectively, these three markets represented 13.8% of total export flows.

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

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

Imports vermouth and other flavoured wine to CIS

Imports in kind, K l

The market showed noticeable fluctuations during this period. In 2019, imports reached their peak at 24,359 thousand liters, while the lowest point was recorded in 2018 at 13,499 thousand liters, representing a 1.8-fold difference between these years. In 2020, the CIS imported 16,128 thousand liters of vermouth and other flavored wines, indicating a sharp decline of 33.8% compared to 2019. The largest increase occurred in 2019 at 80.5%.

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

Throughout 2017-2020, Italy dominated the import structure in volume terms, accounting for 84.7% of total flows. Other markets had comparatively modest shares during this period.

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

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

Imports in value, K $ US

In 2020, cross-border shipments of vermouth and other flavored wines to the CIS totaled 37,397 thousand US dollars, marking a strong decline of 11.9% year-over-year. Over the 2017-2020 period, import value decreased by 23.2%, with a compound annual decline rate of 8.4%. The lowest value was recorded in 2018 at 36,085 thousand US dollars, which also saw the largest decline of 25.9%. The largest increase occurred in 2019 at 17.6%.

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

From 2017 to 2020, Italy was the key partner for imports in value terms, accounting for 90.3% of total flows.

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

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