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The government applied a lower excise rate on low-alcohol drinks in 2014-2019. In contrast, a strong increase in excise caused prices of spirits to grow unaffordably high in 2019, while prices for wine and other low-alcohol drinks remained within people’s means.
In terms of company and brand shares, wine was still highly fragmented in Kazakhstan in 2019. There is a wide range of local and international brands in the category, and among them there is no leading name that could generate a significant volume share of sales.
The local wine culture increased in Kazakhstan in 2019. Local premium wine producers, wine importers and associations organise wine exhibitions, sommelier masterclasses and wine tastings to capitalise on increased consumer demand for the beverage.
On-trade volume sales of wine are expected to fall by 40% in 2020, in light of the impact of COVID-19. This contrasts vividly with the 3% rise forecast for 2020 during research conducted in May 2019, ie before the spread of COVID-19.
The economy segment, mostly comprising locally produced wine, will incur the greatest loss in revenue in 2020, especially in the case of fortified wine, because of the ban on mass feasts/gatherings. Despite the economic downturn born from the pandemic, growing prices of imported wine are unlikely to lead to the greater consumption of local economy wine, because of the different target consumer base.
The on-trade is unlikely to improve considerably in 2020 given that further lockdowns have been imposed because of new spikes in COVID-19 cases in Kazakhstan. Custom in outlets and establishments that reopen will probably have to abide by new social distancing rules – prior to the shutting down of all the on-trade in mid-April, operators had to limit the number of people on the premises at a time, as well as ensure a 2m distance between tables.
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Overview
Discover the latest market trends and uncover sources of future market growth for the Wine industry in Kazakhstan with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Wine industry in Kazakhstan, our research will save you time and money while empowering you to make informed, profitable decisions.
The Wine in Kazakhstan market research report includes:
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This industry report originates from Passport, our Alcoholic Drinks market research database.
Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.