Wine in Bulgaria

2020 IMPACT

Reduced opportunities for socialising, mandated closure of horeca outlets and economic uncertainty negatively affect sales of wine in 2020

On-trade volume sales of wine fell by 31% in 2020 in light of the impact of COVID-19. Off-trade volume sales of wine, meanwhile, decreased by 2% in 2020 due to COVID-19’s impact.

Fruit wine shows most resilience, due to the increasing interest, a product which has a long history of consumption in the country

While all wine product areas registered declines in off-trade volume terms due to COVID-19, the areas that experienced the worst declines are the less popular variants within fortified wines and vermouth: port, sherry and vermouth. The most popular types of wine, still red wine and still white wine are less seen as expensive luxuries as the consumption of these types of wine has a very long tradition in Bulgaria and they retain cultural relevance for people of all income levels.

Declines in inbound tourist arrivals hurts boutique local wineries most, while major producers of wine benefit from increase in demand through modern grocery retail

Major producers of wine such as SIS Industries, Domain Boyar and Domain Menada were less affected by COVID-19 and the global lockdowns due to their financial resilience and capacity to compensate for the decline in domestic sales through increased export. These major players have an advantage over boutique local wineries, such as Borovitza Winery, Bratanov Winery, Chateau Copsa, Villa Yustina and Orbelus Winery, among others, as they sell their wine through modern grocery retailers.

RECOVERY AND OPPORTUNITIES

Strong tradition of consuming still white wine and still red wine expected to drive growth from 2021 onwards

With positive total volume growth expected to be seen in sales of wine 2021 onwards, an overall positive performance is expected for the product area over the forecast period. Demand for wine remains fairly inelastic due to the very strong tradition of consuming both still white wine and still red wine in all parts of the country and among consumers of all income levels.

Fruit wine and imported products at the forefront of emerging trends

Non-grape wine was the most dynamic product area in wine in Bulgaria in 2020. This is due to the increasing interest in fruit wine, a product which has a long history of consumption in the country, but which until now was subject mainly to artisanal production and seasonal consumption.

Burgeoning export opportunities spur the development of Bulgaria’s wine industry

Wine is a very traditional and popular drink in Bulgaria and the country’s wine production is gaining increasing attention overseas. This has sharpened the marketing focus of the product area’s leading players, with promotional events forming an increasingly important part of the positioning and marketing of wine brands.