Wine in Bulgaria

PRE-COVID-19 PERFORMANCE

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 category’s leading players, with promotional events forming an increasingly important part of the positioning and marketing of wine brands.

Fruit wine and imported products at the forefront of emerging trends

Non-grape wine was the most dynamic category in wine in Bulgaria in 2019. 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.

Tourism remains a major driver of rising demand for wine

Bulgaria’s rapidly developing travel and tourism industry remains an important source of demand for wine. 2019 was dubbed “the year of spa tourism” among some travel industry players, with the increasing demand for relaxing spa breaks in the country’s many noted mineral spa resorts such as Hissarya and Velingrad a major driver of wine consumption in the on-trade.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of wine are expected to fall by 30% in 2020 in light of the impact of COVID-19. This compares very unfavourably to an expected 4% rise forecast for 2020 during research conducted in May 2019, ie before the spread of COVID-19.

Affected products within wine

While all wine categories are expected to have registered declines in off-trade volume terms due to COVID-19, the categories to have experienced the worst declines are the less popular categories within fortified wines and vermouth: port, sherry and vermouth. The most popular types of wine, still red wine and still white wine are less likely to be 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.

Recovery and opportunities

With positive total volume growth expected to be seen in sales of wine 2021 onwards, an overall positive performance is expected for the category 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.

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