Wine in Eastern Europe

Delivery

This report comes in PPT.

Key Findings

Grape vs non-grape wine

Although it performed well over the review period, non-grape wine is losing popularity, mainly in the biggest countries in the region: Russia and Ukraine. Still light grape wine remains the biggest category in the region and the one with the highest growth performance, due to economic recovery of the biggest volume generators. Non-grape wine, however, is expected to see some movement in countries such as Bulgaria and Poland, as a driver of the wine category.

Fragmentation leaves room for innovation

Although a very fragmented market seems challenging from the perspective of industry players, it can hide opportunities for innovation. Having a wide range of products available on shelves makes consumers of wine less loyal to a certain brand and more willing to explore. Therefore, new locally-manufactured product launches that tell a story, are likely to win consumers to their side.

Tax pressure limits sales

As increasing excise taxes continue to put pressure on still light grape wine prices especially in Baltic countries, part of consumers are shifting towards more affordable categories, such as non-grape wine. On the other hand, countries such as Romania, with no excise tax in place for wine, remain an opportunity yet to be exploited by industry players.

Soft drivers becoming relevant over forecast period

A stable economic climate in the region fosters the willingness of consumers to indulge. Having the economic means to afford better quality products, this is predicted to be seen in the purchase of more expensive varieties of wine. Moreover, increasing variety of products taken together with targeted promotional activities raise consumers’ awareness. Female-targeted advertising, for example, is expected to continue boosting sales of rosé and sparkling wines.