< Key Hightlight >

MARKET OUTLOOK

The market for alcoholic spirits in Russia is set to rise with a CAGR of 2.43% (revenue) and 0.98% (volume) in the estimated period from 2021 to 2026.

Faced with the adverse shifts in demographic trends and unfavorable consumer habits for the sales of vodka in 2019, the country’s leading spirits distillers were compelled to diversify their portfolios to remain relevant in the industry. Beluga Group was among the first vodka brands to realize the potential for a more diversified portfolio for spirits in order to yield positive results. It therefore began investing heavily in improving its brand image and entering into partnerships with globally known names. 

Brandy, cognac, and whiskies were the best performing categories in absolute volume terms in 2019. More Russians are now showing interest in spirit categories that are considered more upmarket. Japanese whisky, tequila (and mezcal), English gin, dark rum, and single malt Scotch whisky were the hardest hit by the COVID-19 pandemic during 2020. This was due to consumers being unable to justify high spending on these products as a result of the widespread COVID-19-inspired economic uncertainty.

COMPETITIVE OUTLOOK

The top key players in the alcoholic spirits market are Tatspirtprom OaO, Russian Standard Corp, Global Spirits Amg-77 Holding Co, Beluga Group PaO, Bashspirt OaO, and Alkogolnaya Sibirskaya Gruppa OoO.