Russia Beer and Cider Market Insights to 2026 – Market Overview, Category and Segment Analysis, Company Market Share, Distribution, Packaging and Consumer Insights

The beer market in Russia was valued at 1,597,618.2 LCU million in 2020 and is projected to grow at a CAGR of more than 7% during the period 2021-2026. The Russian cider market was valued at 5,440.6 LCU million in 2020 and will grow at a CAGR of over 8% during the forecast period. The beer and cider market in the country declined significantly in 2020 due to the COVID-19 impact. Beer is set to outperform cider in terms of value growth during the forecast period.

Beer represented the largest category share in 2020 in the Russian beer and cider market. Lager accounted for the largest share of beer volume sales in 2020, followed by wheat beers. Beer, like all other categories, was severely impacted by the COVID-19 pandemic, which led to the closure of on-premise establishments, as well as the enforcement of curfews across the country. The category was mainly supported by growth in off-premise consumption while people were spending most of their time at home during isolation and warm summer. The easing of COVID 19 restrictions during the main beer consumption months in summer also supported growth.

Overview of beer market in Russia

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What is the beer and cider market dynamics in Russia?

Russia experienced an economic downturn due to falling crude oil prices, exacerbated by the COVID-19 outbreak. According to the IMF, Russian GDP declined by more than 5% in 2020. Unemployment rose above 25% since the start of the crisis, which negatively impacted consumer spending. Also, on-premise sales of beer and cider were heavily impacted by the nationwide lockdown, with the hotel and catering industry being forced to cease operations. The temporary closure of clubs, bars, cafes, and restaurants had a detrimental effect on sales.

Industrial output fell sharply due to the temporary shutdown of factories during the lockdown. However, this situation was offset by the sudden spike in alcohol retail sales, including beer. Indeed, sales of inexpensive imported alcohol have grown significantly in annual terms since the introduction of pandemic measures, with Russians buying more alcohol than usual for consumption at home.

On-premise channels are the primary means of distribution for beer. The closure of on-premise channel led to significant decline and losses. To counter this, companies launched initiatives to support the businesses. For instance, Heineken launched the ‘Back the Bars’ initiative to support bars and restaurants during the crisis. The Carlsberg Foundation announced a donation of Kr95 million (US$14.8 million) to support the fight against COVID-19. 

What are the category classifications in Russian beer and cider market?

In 2020, beer represented the highest category share in Russia’s beer and cider market. The health and wellness trend are changing consumption patterns in the beer and cider space, with many Russian consumers switching to low- or no-alcohol products as part of their efforts to lead a healthier lifestyle. 

Beer market in Russia

Based on beer type, the market is segmented into lager, wheat beer and flavored beer. By beer flavor, various segments in the market are lemon, spirit based, cherry, apple, and lime. Lager was the most preferred beer type and accounted for the highest value and volume share in 2020. Lager also registered the highest annual value and volume increment, mainly due to its easy availability and large product portfolio. Wheat beer was the second most popular beer type. Its volume CAGR from 2016-2020 was higher than that of lager and gained share within the sector. Low value and volume growth indicates that consumers are preferring other beer types over lager. 

Cider market in Russia

By cider type, the market segments include apple cider and pear cider. Consumers’ gradual shift to lower alcohol drinks, driven by rising awareness regarding negative health impact of beverages with high alcohol content, has been instrumental in driving the popularity of cider. Availability of interesting flavor options and inclination of Russian consumers to experiment with their beverage options has aided value and volume sales for ciders. Consumer’s inclination towards cider is gaining momentum as they seek lighter alcoholic drinks with new flavors and taste. Companies should focus on introducing more flavors with unique combinations and tastes.

Beer and cider market in Russia, by category

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What are the distribution channel classifications in Russian beer and cider market?

Based on the distribution channel, the market is segmented into on-premise and off-premise distribution channels. COVID-19 led restrictions negatively affected beer cider sales across on-premise channels. Consumption shifted indoors as consumers preferred to enjoy their favorite beer and cider varieties in the comfort of their homes. This resulted in off-premise sales to gain traction. Post 2020, on-premise sales are slated to gain momentum as lockdown restrictions ease and consumers move out of their homes to socialize with friends and family.

Beer and cider market in Russia, by distribution channel

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Who are the major players in Russia’s beer and cider market?

In 2020, Baltika Breweries accounted for a majority of the share in Russia’s beer and cider market followed by Heineken Brewery, Eses Russia, Sun InBev Russia, and Moscow Brewery. Under the beer category, the top three brands – Baltika, Zhigulievskoe, and Carlsberg – constituted majority share (both by value and volume) in 2020. In the cider category, Orchard Thieves brand held the largest share in the market during the same period.

Beer and cider market in Russia, by key players

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Scope

Covering total market (on and off-premise) the report details –

• 2016-2020 actual detailed beer consumption volume data by segment, brand, brewer, packaging and distribution (on and off-premise), with 2021 forecasts.
• Value by distribution channel 2016-2020, with 2021 forecasts.
• Overview of the competitive landscape in the beer and cider market, with analysis of key company performance.
• Insightful and valuable analysis of the drivers behind both current and emerging trends in the beer and cider market

Key Highlights

• What is Russia’s beer market size in 2020?

  • The beer market in Russia was valued at 1,597,618.2 LCU million in 2020.

• What is Russia’s beer market growth rate?

  • The beer market in Russia is expected to grow at a compound annual growth rate of more than 7% during the period 2021-2026.

• What is Russia’s cider market size in 2020?

  • The cider market in Russia was valued at 5,440.6 LCU million in 2020.

• What is Russia’s cider market growth rate?

  • The cider market in Russia is expected to grow at a compound annual growth rate of more than 8% during the forecast period.

• What are the key categories in Russia’s beer and cider market?

  • Key categories in Russia’s beer market include lager, flavored beer and wheat beer. The cider market comprises of apple cider and pear cider.

• Who are the key players in Russia’s beer and cider market?

  • In 2020, Baltika Breweries accounted for a majority of the share in Russia’s beer and cider market followed by Heineken Brewery, Eses Russia, Sun InBev Russia, and Moscow Brewery.

• What are the major brands in Russian beer and cider market?

  • Baltika and Zhigulievskoe are the leading beer brands in Russia while Orchard Thieves and Strongbow are the leading cider brands.

• What type of packaging materials are used in beer and cider market in Russia?

  • Metal was the most commonly used pack material in the beer and cider market in Russia in 2020, followed by PET and glass.

Reasons to Buy

• Gain an in-depth understanding of the dynamics and structure of the Russia beer and cider industry, from the latest competitive intelligence of both historical and forecast trends to enhance your corporate strategic planning.
• Evaluate the current emerging trends and future growth opportunities in the Russia beer and cider market to support your brand development and marketing initiatives.
• Understand volume vs. value trends and identify the key growth opportunities across the super-premium, premium, mainstream and discount segments to best target profitability.
• Analyze domestic and imported beer brand performance and determine the key trends driving consumption preference to develop a competitive advantage.
• Interrogate the unique granularity of our data to analyze the market on a variety of levels to make well-informed decisions on future threats and growth prospects in the marketplace for your company.