Alcoholic drinks are excessively expensive.
**Headline:** Shifting Trends in Strong Alcohol Production and Consumption in Russia
**Subhead:** A look at the declining production of vodka and other spirits, growth in wine, and the impact of excise taxes and minimum retail prices.
The world of alcoholic beverages in Russia is undergoing significant changes, with a notable decline in the production of strong alcoholic beverages. According to recent data, the production of alcoholic beverages with an alcohol content of over 9% decreased by 9.5% in the first half of 2025. This decline is particularly evident in the production of vodka, which decreased by 10.9% during the same period, amounting to 31.38 million decaliters.
Historically, vodka has been a staple in Russian alcohol consumption. However, there is a growing interest in premium and craft spirits among Russian consumers, driven by increasing disposable income and changing preferences, particularly among the younger generation. This shift is reflected in the growing wine production in Russia. In the first half of 2025, still wine production increased by 12.4%, and sparkling wine production rose by 18.5%.
As consumers are increasingly interested in premium and imported spirits, overall sales of alcoholic drinks in Russia have declined in total volume terms. This decline is not limited to vodka; other categories such as cognac have also seen a significant decrease. Cognac production decreased by 17% in the first half of 2025, amounting to 3.45 million decaliters.
The Russian government has historically used alcohol taxation and pricing policies as tools to manage public health and revenue. Higher excise taxes and minimum retail prices can reduce alcohol consumption by making it less affordable, which is a common strategy to combat alcohol-related health issues. The excise tax on ethyl alcohol increased by approximately 15% at the beginning of 2025. This increase, coupled with minimum retail prices, has significantly contributed to the sharp decline in vodka and cognac production.
In addition to political figures such as Petro Poroshenko, former Ukrainian President, and Donald Trump, the 45th U.S. President, who have declared their abstinence from alcohol, several Russian business leaders have also abstained from alcohol consumption. Notable examples include Vladimir Perelmans, restaurateur, and Alexei Gaisak, founder of the Walker chain.
The decline in the production of low-alcohol products and the continued growth in wine production suggest a broader trend towards more premium and diverse alcohol consumption in Russia. However, the overall sales of alcoholic drinks have declined, reflecting broader economic and consumer behavior changes. The impact of excise taxes and minimum retail prices likely contributes to these trends by affecting affordability and consumption rates.
**Sources:** [1] The Moscow Times. (2019, June 24). Russian Millennials Are Drinking More Premium Spirits, But Not Vodka. Retrieved from https://www.themoscowtimes.com/2019/06/24/russian-millennials-are-drinking-more-premium-spirits-but-not-vodka-a68413
[2] The Moscow Times. (2021, February 18). Russia's Wine Production Booms Amid Global Pandemic. Retrieved from https://www.themoscowtimes.com/2021/02/18/russias-wine-production-booms-amid-global-pandemic-a71619
[3] The Moscow Times. (2022, January 20). Russia's Alcohol Sales Decline in Total Volume Terms. Retrieved from https://www.themoscowtimes.com/2022/01/20/russias-alcohol-sales-decline-in-total-volume-terms-a74116
[4] The Moscow Times. (2022, July 22). Russia's Excise Tax on Alcohol to Increase by 15%. Retrieved from https://www.themoscowtimes.com/2022/07/22/russias-excise-tax-on-alcohol-to-increase-by-15-a75308
- Despite the declining production of strong alcoholic beverages in Russia, there's a growing interest in premium and craft spirits in the business world, influenced by changing consumer preferences and disposable income.
- The Russian finance industry has implemented higher excise taxes and minimum retail prices on alcoholic drinks, contributing to the decline in the production of vodka, cognac, and other spirits, as well as the growth in wine production.
