Vermouth and other flavoured wine market Ukraine

Earlier Report Observations

The market for vermouth and other flavoured wine in Ukraine experienced strong growth, rising from 5.8 million liters in 2018 to a peak of 9.7 million liters in 2021. This expansion was supported by regulatory initiatives, including work begun in 2018 to create a national vineyard register and plans to simplify wine production licensing, which improved the business climate for producers. Following a modest contraction in 2020, the market resumed its upward trajectory in 2021.

The full-scale Russian invasion in 2022 severely disrupted the market, causing volume to plummet by 32% to 6.6 million liters. This decline resulted from damaged production facilities, logistical challenges, and a government decision to raise minimum retail prices for alcohol, including vermouth and flavoured wines. A significant recovery to 8.6 million liters occurred in 2023 as the industry adapted to the new conditions.

Production vermouth and other flavoured wine Ukraine

In kind, 2017-2020, K l

Ukraine was among the world's leading producers of vermouth and other flavoured wine from 2017 to 2020, ranking 7th globally by production volume.

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

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

Ukraine's production of vermouth and other flavoured wine grew for two consecutive years before declining in 2020. That year, output reached 5 035 K l, which was 9.3% lower than in 2019. Over the entire 2017-2020 period, production increased by 49.3%, with an average annual growth rate of 14.3%. The peak was recorded in 2019 at 5 552 K l, marking the largest annual increase of 62.7%.

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

Exports vermouth and other flavoured wine to Ukraine

Exports in kind, K l

Ukraine's exports of vermouth and other flavoured wine fell for the third year in a row. In 2020, the country exported 279 K l, a drop of 33.2% compared to the previous year. From 2017 to 2020, exports decreased by 69.3%, which translates to an average annual decline of 32.5%.

Annual dynamics of product's exports to Ukraine in kind, 2017-2020, K l

Between 2017 and 2020, Ukraine's exports of vermouth and other flavoured wine were distributed across many countries, with no single market dominating. Kazakhstan accounted for 17.4% of exports, Georgia for 16.3%, and Azerbaijan for 14.3%, together making up just 48.0% of total export volume.

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

World map of product's exports to Ukraine in kind, 2017-2020

Exports in value, K $ US

Ukraine's exports of vermouth and other flavoured wine in value terms declined for the third consecutive year. In 2020, export value amounted to 1 039 K $ US, down 38.0% from the previous year. From 2017 to 2020, exports fell by 53.4%, with an average annual decrease of 22.5%.

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

From 2017 to 2020, Ukraine's vermouth and other flavoured wine exports in value terms were spread across numerous markets. Even the top three destinations—Kazakhstan, Azerbaijan, and Georgia—combined represented only 24.2% of total export value.

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

World map of product's exports to Ukraine in value, 2017-2020

Imports vermouth and other flavoured wine in Ukraine

Imports in kind, K l

Ukraine's imports of vermouth and other flavoured wine rose for the second year in a row. In 2020, imports totalled 3 562 K l, up 1.5% year-over-year. Over the 2017-2020 period, imports increased by 12.4%, with an average annual growth rate of 4.0%. The lowest volume was recorded in 2018 at 3 166 K l, which saw a slight decline of 0.1%. The largest increase occurred in 2019, with a 10.8% rise.

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

From 2017 to 2020, Italy dominated Ukraine's imports of vermouth and other flavoured wine in volume, accounting for 82.8% of the total. The remaining volume was shared among many other countries, each with smaller individual shares.

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

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

Imports in value, K $ US

After increasing for two years, Ukraine's imports of vermouth and other flavoured wine in value terms declined in 2020. That year, imports were valued at 9 250 K $ US, a decrease of 12.5% compared to 2019. Over the 2017-2020 period, imports grew by 10.5%, with an average annual rate of 3.4%. The highest value was recorded in 2019 at 9 250 K $ US, which also saw the largest annual increase of 22.6%.

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

Between 2017 and 2020, Italy was the leading supplier of vermouth and other flavoured wine to Ukraine in value terms, holding 74.4% of total imports. The rest was distributed across many other countries.

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

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