Wine in Kazakhstan

PROSPECTS

Still red and white wines remain leading sellers by volume

In 2017, white and red wines led the wine category by volume. This situation is typical of a market such as Kazakhstan with an underdeveloped consumption culture and general consumption focused on parties or holiday celebrations.

Consumer focus switches away from vermouths and fortified wines

While still wines have been enjoying relative growth, the situation with fortified wine has remained more challenging. Consumption of vermouths and other fortified wines has seen negligible growth over the review period, a situation explained by a shift in consumer preference; while traditional cultural factors still dictate the majority of cases for wine consumption, understanding about quality and value has evolved with more information becoming available and more attempts by retailers to educate the general public.

Wine remains underdeveloped, but shows promise

In general, wine consumption in Kazakhstan stagnated over the review period. Although volume sales demonstrated some growth, no significant qualitative developments were evident in consumption trends.

COMPETITIVE LANDSCAPE

Competitive landscape remains open

In contrast to other categories of alcohol consumption such as beer and spirits, the competitive environment for wine has historically remained a relatively open playing field. This tendency continued in 2017, with very few prominent players present in the market that could be identified as setting trends or prominent in the minds of consumers.

Brands suffer from fragmentation and low consumer awareness

Fragmentation of the competitive environment has also meant low consolidation of brands in wine in Kazakhstan. With retailers only beginning to educate the public, and cultural sentiment regarding wine drinking (largely stemming from Soviet times, when supply of wine was scarce and lacked diversity) only recognised large categories such as “red wine” and “white wine”, the majority of Kazakhstani consumers remain unaware of particular brands or types of wine.

Retail remains the main distribution channel

Not dissimilar to other alcoholic beverages, wine is mainly sold through off-trade channels in Kazakhstan. This trend is largely driven by diminished disposable incomes associated with post-crisis times causing consumers to eat or drink out less frequently.

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