As vodka comes under the spotlight amidst Russia’s invasion of Ukraine, IWSR takes a deeper look at the Russian alcohol market.
Russia is the 4th largest alcohol market in the world in terms of volume, with imports accounting for 9% of total consumption. Whisky makes up 5% of Russia’s spirits consumption, and a third of its spirits imports. 91% of Russia’s whisky consumption is from imported whisky. While there have been calls to ban Russian-made goods in light of the country’s invasion of Ukraine, boycotts of Russian vodka brands will have a fairly minimal impact on Russian vodka producers. Any significant impact is more likely to be symbolic.
While Russia is the largest vodka producer in the world, with over 30% of global production, the vast majority (over 90%) of Russian-made vodka is consumed domestically.
Outside of Russia, the UK, Germany, the US and Israel round out the top five markets for Russian-made vodka, although volumes are relatively small.
Russian vodka accounts for under 3% of all vodka consumed in Europe (excluding CIS) by volume.
In the US, the world’s second largest vodka market by volume, Russian vodka accounts for less than 1% of all vodka consumed. Approximately half of all vodka consumed in the US is made in the US. While vodka is the country’s largest export, Russia is also a relatively large producer of beer and wine – though much of this is consumed domestically.
Russian beer makes up 1% of the global beer market. Over 99% of Russian beer is consumed domestically.
Similarly, Russia produces 2% of the world’s still wine, with almost all of it consumed locally.
Russia also produces 6% of the world’s sparkling wine, with 99% of it consumed domestically.