In addition to being a staple at large social gatherings such as weddings and parties, wine is traditionally among the alcoholic drinks most commonly consumed when Azerbaijanis come together with friends and family in smaller numbers in private homes, particularly during meals. As a result, this category was especially hard hit by lockdown measures and the observance of social distancing rules introduced to curb the spread of COVID-19 in 2020, with off- and on-trade volume sales declining at double-digit rates.
Still light grape wine is the dominant type in Azerbaijan in terms of consumption and production, with still red wine products continuing to account for the largest share of total volume sales in this category in 2021. However, the country also has a strong tradition of pomegranate wine production.
As Azerbaijan’s wine drinking culture evolves, local consumers are developing more sophisticated and adventurous tastes. This is especially true of young adults in major cities, who are more willing to experiment with different product types and trade up to higher quality wines.
Wine looks set to perform positively over the forecast period, with healthy growth in off- and on-trade volume sales projected. On-trade volume growth will remain elevated in the short term as the further easing of the pandemic encourages higher levels of socialising among Azerbaijanis and supports a sustained recovery in inbound tourism, but is nonetheless expected to slow steadily from 2022 as demand stabilises.
While the outlook for wine over the forecast period is bright on the whole, it is likely growth in total volume sales will be constrained by heightened budget-consciousness resulting from rising inflation and the negative impact COVID-19 has had on household incomes and spending power. Overall growth prospects will also be limited by the fact that many lower-income consumers in the country do not drink wine at all, while those that do often favour cheaper home-made varieties and only purchase branded products for special occasions.
It is expected local players will continue to gain ground in wine over the forecast period. Domestic producers have long had a strong presence in this category due to Azerbaijan’s rich winemaking tradition and the fact that their brands tend to be more affordable than imported competitors.
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This is the aggregation of still and sparkling light grape wines, fortified wine and vermouth and non-grape wine. In terms of alcohol content, light wine usually falls into the 8-14% ABV bracket while fortified wine ranges from 14-23% ABV. Low and non-alcoholic wine is also included in the data (attributed to each sector as appropriate).See All of Our Definitions
This report originates from Passport, our Wine research and analysis database.
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