Wine - Russia

The Wine market in Russia has been experiencing significant growth in recent years.

Customer preferences: Russian consumers have developed a growing taste for wine, with an increasing number of people incorporating it into their social gatherings and meals. Wine is no longer seen as a luxury item reserved for special occasions, but rather as a beverage that can be enjoyed on a regular basis.

Trends in the market: One of the key trends in the Russian wine market is the growing demand for imported wines. Russian consumers are becoming more knowledgeable about different wine regions and grape varieties, and are seeking out a wider range of options. This has led to an increase in the importation of wines from countries such as France, Italy, Spain, and Chile. Another trend in the market is the rise of domestic wine production. Russian winemakers have been investing in modern technology and techniques to improve the quality of their wines, and this has been well-received by consumers. Domestic wines are often seen as a point of national pride and are preferred by some consumers over imported options.

Local special circumstances: The Russian wine market is unique in that it is heavily influenced by cultural and historical factors. Wine has a long history in Russia, dating back to the time of the tsars. It is often associated with celebrations and special occasions, and is deeply ingrained in Russian culture. This has created a strong demand for wine in the country, and has contributed to the growth of the market.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the wine market in Russia. Firstly, there has been an increase in disposable income among Russian consumers, allowing them to spend more on luxury items such as wine. Additionally, changes in lifestyle and social habits have led to an increase in wine consumption. As more Russians travel abroad and experience different cultures, they are exposed to new foods and beverages, including wine. This has helped to create a demand for wine in the domestic market. In conclusion, the wine market in Russia is experiencing significant growth due to changing customer preferences, including a growing demand for imported wines and an increasing interest in domestic production. Cultural and historical factors, as well as underlying macroeconomic factors, have also contributed to the growth of the market. As the market continues to develop, it is expected that the demand for wine in Russia will continue to increase.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.