I don't want to: retail alcohol sales in Russia decreased by almost 15%
The Russian alcohol market has shown a decline, with a drop in retail sales of almost all types of alcohol recorded in the first quarter of 2025. The total volume of products sold decreased by 14.7% to 47.877 million decaliters (dal). An increase in excise taxes, minimum retail prices and duties on foreign products led to a drop in demand, experts say. Izvestia found out whether this trend will continue.
Sales collapse
Retail sales of almost all types of alcohol decreased by 14.7% in the first quarter of 2025. The volume dropped to 47.877 million dal. The statistics did not include beer, beer drinks, cider, poiret and mead.
Data on the decline in retail sales is provided by Rosalokoltabakcontrol. It follows from them that the sold volume of alcoholic beverages with a strength above 9% decreased by 4.4%, to 27.75 million dal. At the same time, sales of low-alcohol products decreased by 89.3%, to 490.8 thousand dal.
The observed decline in retail sales is due to a change in the price environment, the Federal Service for Control of Alcohol and Tobacco Markets told Izvestia. In the case of low-alcohol products, a change in the excise tax calculation procedure and an increase in its rate from May 1, 2024 led to a reduction in production volumes.
"After these changes, the production of low-alcohol products has almost completely shifted to the group of fermented beverages (beer, mead, etc. — Ed.). Accordingly, retail indicators have also moved into this category," the press service of the department emphasized.
Vodka sales in the first quarter fell by 7.2%, amounting to 17 million dal. The volume of cognac sold at retail decreased to 3.1 million dal (-12.6%). Meanwhile, the number of alcoholic beverages sold increased by 12.3%, to 4.23 million dal.
Sparkling wine sales also showed growth. During the specified period, they increased by 4.9%, to 5.14 million dal. The volume of grape wines sold, however, decreased by 2%, to 12.98 million dal. The share of liqueur wines in retail trade decreased by 8.8%, to 266.7 thousand dal.
A decrease is also observed in the segment of grape-containing beverages with ethyl alcohol. During the reporting period, their sales decreased by 9.1%, to 385.7 thousand dal. Drinks without ethyl alcohol showed a decrease of 59.8%, to 66.9 thousand dal. The volume of sales of fruit alcoholic beverages decreased by 73.3%, to 797.7 thousand dal.
The issue price
A drop in sales in the food market traditionally occurs after the New Year holidays, recalls Alexander Anfinogenov, an independent expert at the FMCG market. This also applies to alcohol.
The reduction in demand for alcohol is due to a change in its price caused by inflation, the Association of Producers of Russian Vodka told Izvestia. Additional factors include increased excise taxes, minimum retail prices, and duties on foreign products. Restrictions on the retail sale of products by location and time, imposed by the authorities of different regions, also had an impact.
In 2025, the excise tax on vodka rose by a record 15%, which is why the minimum retail price increased from 299 to 349 rubles per 0.5 liters, says Igor Kosarev, president of the Union of Alcohol Producers. In his opinion, this has in some way redistributed consumer preferences in alcohol in favor of those drinks, the price of which has not increased so significantly.
The same applies to the decline in wine sales, which was influenced by the rise in prices of imported products, agrees Vladimir Kosenko, chief ambassador of the Luding Group wine portfolio and head of training at the WineState sommelier school.
— Duties on wines from unfriendly countries in 2023-2024 rose to 25%, which led to the price of 400 rubles turning into more than 800 rubles. Prices for previously imported stocks changed gradually, but now this difference has become very noticeable," he says.
The cost of Russian wine has also increased, as the Central Bank's key rate, currently 21%, affects domestic businesses.
It is worth noting that the difference between the cost of alcohol and its retail price, taking into account government regulation of sales time, develops shadow retail and home-brewed moonshine, which is not available in official studies, complements Anthinogenov.
— Sales of moonshine distillers increased by 5% in the first quarter of this year. The number of equipment in the hands of the population is estimated at about 3 million units. Homemade moonshine accounts for about 20% of the total consumption of strong alcohol, the expert draws attention to.
Another important factor that has led to a decrease in demand is the trend towards a healthy lifestyle, including among the older generation, said Alexander Stavtsev, head of the WineRetail information center.
— Consumers today are still less dependent on alcohol - the consumption level has decreased in recent years. People regard alcohol as a kind of accompaniment to a meal or a Friday night, but not an obligatory everyday product. Accordingly, when prices rise, a person simply refuses to buy," he explains.
And the decrease in demand, according to him, is not too pronounced now and may be short-term. According to the main categories, the market is still at a fairly high level. This is especially true for wine, Stavtsev is sure.
Faded popularity
There are two main categories in the group of low-alcohol drinks, recalls Alexander Stavtsev.
— The first is the so—called RTD (ready to drink), that is, ready-to-drink drinks. These are gin and tonics, rum-Cola and other ready-made cocktails based on strong alcohol, sold in cans," says the expert.
Sales of such drinks have declined significantly in recent years. According to Alexander Anfinogenov, they are leaving the market due to the high retail price, primarily related to excise taxes on alcohol.
The second category includes drinks that look like sparkling wine. Previously, they were sold in the "low alcohol drinks" category. Now they are positioned as beer drinks or ciders. According to the Izvestia interlocutor, for this reason, the same labels are now statistically present in several categories. And this partly explains why sales of beer drinks have increased in Russia. Simply put, the popularity of these products has not decreased — the positioning has changed.
At the same time, as Anfinogenov notes, the scope of the low-alcohol drinks market, which was observed in the noughties, is fading. This is due to a change in consumer attitudes towards low-alcohol beverages, which, in turn, is associated with generational change.
The holiday boom
An important aspect that affects demand in the first half of the year is the duration of the May holidays, emphasizes Alexander Stavtsev. There are quite a few days off this year. Accordingly, people have more free time, and consumption is growing.
— For the same reason, by the way, consumption may be relatively low in the first quarter compared to the previous year, because we had more holidays during this period last year. There were long weekends on both Defender of the Fatherland Day and International Women's Day," the expert believes.
This year, against the background of more holidays, consumption in May may be comparable to the level of 2024 or even slightly higher, he predicts.
But long weekends are not the only factor influencing the increase in demand. The spring increase in alcohol sales is also related to weather conditions, Alexander Anfinogenov draws attention. The onset of heat increases beer and wine sales by 4-5%. It is followed by the purchase of strong alcohol (5-6%).
Sustained popularity
Beer remains the largest segment of the Russian alcohol market, notes Alexander Stavtsev. The level of its consumption exceeds 8 billion liters. Citizens drink 10 times less wine.
— One of the factors is related to the fact that beer is more affordable from the point of purchase, because its sale is regulated differently at the state level. And the beer market continues to look for its audience, putting big budgets on product PR through advertising "zero". Due to this, there is a more pronounced communication campaign in this category, forming the consumer environment," the Izvestia interlocutor is convinced.
A typical beer consumer in Russia is a middle—aged married man with incomplete higher or higher education and an income of average or above average, says Alexander Anfinogenov.
— For such a person, beer consumption in life is quite conservative. To drink one or two cans of beer, he does not need to wait for a holiday or a feast, the expert believes.
Last year, by the way, beer volumes also increased due to wine buyers. Against the background of rising prices for imported wine, several million retail consumers have switched from one type of drink to another, adds Stavtsev.
— However, now alcohol consumption in this category is being adjusted against the background of an increase in the rate of import duties on imported beer. The full picture will become clear based on the results of the first half of the year," he clarifies.
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