Wine and wine products market in CIS

Earlier Report Observations

Between 2018 and 2019, the CIS wine market expanded from 1 395 thousand tons to over 1 510 thousand tons. This growth was supported by the initial trend of import substitution in the Russian winemaking industry and broader government policies regulating alcohol production and trade, which stimulated market activity alongside rising imports. However, in 2020, the market volume contracted to 1 378 thousand tons as the continued push for import substitution reduced inbound shipments, coinciding with a decline in domestic production.

Market volume stabilized around 1 393 thousand tons in 2021. The following year, it plummeted by 27% to 1 017 thousand tons. This severe contraction was directly caused by sanctions and restrictions on wine imports from non-friendly countries, coupled with the tightening of customs duties and excise taxes, which slashed import volumes by nearly half.

In 2023, the market showed initial signs of recovery, growing by 4.4% to 1 062 thousand tons, as domestic production remained relatively steady and import levels stabilized after the previous year's shock.

Production wine and wine products in CIS

In kind, 2017-2020, K t

Top producers of wine and wine products, 2017-2020

World map of production of wine and wine products, 2017-2020

Following two consecutive years of growth, wine and wine products production in the CIS declined. In 2019, production reached its peak at 768 K t, representing the largest annual increase of 3.4%. However, in 2020, output fell to 731 K t, marking a moderate year-over-year decline of 4.8%.

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

In value, 2017-2020, M $ US

After two years of gains, wine and wine products production in the CIS experienced a downturn. In 2019, production value peaked at 2 672 M $ US, with the largest annual increase of 15.4%. In 2020, the value dropped to 2 122 M $ US, showing a substantial reduction of 20.6% compared to the previous year. Over the period from 2017 to 2020, production decreased by 7.4%, equivalent to an annualized rate of 2.5%.

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

Exports wine and wine products from CIS

Exports in kind, K t

Wine and wine products exports in the CIS have increased for the third consecutive year. In 2020, exports totaled 241.3 K t, reflecting a slight increase of 1.6% over the previous year. From 2017 to 2020, exports grew by 7.8%, which translates to an annualized rate of 2.5%.

Annual dynamics of product's exports from CIS in kind, 2017-2020, K t

Between 2017 and 2020, exports in kind were distributed across a diverse range of partner countries. Ukraine accounted for 9.4% of exports in kind, the United Kingdom for 5.0%, and Georgia for 4.3%. Together, these three countries represented just 18.7% 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, M $ US

After two years of increase, cross-border shipments of wine and wine products in the CIS declined. In 2019, exports reached their maximum value of 826 M $ US, with the largest annual increase of 14.6%. In 2020, exports fell to 700 M $ US, marking a solid decline of 15.2% compared to the previous year.

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

From 2017 to 2020, the buyer portfolio for wine and wine products from the CIS was broad. Ukraine contributed 6.8% of exports in value terms, Latvia 4.3%, and the United Kingdom 4.2%. Combined, these three countries accounted for only 15.4% of total exports in value terms, with many other countries holding smaller but notable shares.

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

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

Imports wine and wine products to CIS

Imports in kind, K t

In 2018, imported wine and wine products volumes in the CIS hit their lowest point at 883.3 K t. In 2019, imports peaked at 979.3 K t, recording the largest annual increase of 10.9%. In 2020, volumes declined to 887.8 K t, showing a 9.3% year-over-year decrease. Over the 2017-2020 period, imports fell by 3.1%, with a compound annual growth rate of 1.0%.

Annual dynamics of product's imports to CIS in kind, 2017-2020, K t

During 2017–2020, wine and wine products were imported into the CIS from a wide set of markets. Italy supplied 16.5% of imports in kind, Spain 12.6%, and France 7.9%. Together, these three countries accounted for 36.9% of total imports in kind, while the remaining 63.1% came from numerous smaller destinations.

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, M $ US

Following two years of advance, wine and wine products deliveries to the CIS declined. In 2019, import value reached its maximum at 2 777 M $ US, with the largest annual increase of 13.9%. In 2020, import volume totaled 2 503 M $ US, amounting to a decrease of 9.9% compared to 2019. Between 2017 and 2020, imports increased by 4.6%, equating to an annualized rate of 1.5%.

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

In the 2017–2020 period, the partner landscape for imports in value terms was extensive. Italy accounted for 16.6% of imports in value terms, France for 14.8%, and the United Kingdom for 11.8%. Together, these three countries formed only 43.1% of total flows, with a substantial 56.9% supplied by many other countries.

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

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