Vodka is one of the most popular alcoholic beverages in the world. The global demand for vodka is supported by the growing popularity of alcoholic cocktails based on it.
An additional factor stimulating demand is the development of the retail trade, in particular stores that specialize in alcoholic beverages. The general global trend at vodka market is a shift in consumer preferences towards premium products, as well as vodka with various fruit and berry flavors.
The demand for vodka in Asian region is formed largely due to the huge number of working youth who are open to new drinks, such as high-quality alcoholic cocktails, as well as an established culture of consumption of spirits. Despite the growing popularity of flavored vodka in recent years, non-flavored vodka continues to dominate the market of strong alcoholic beverages in Asia. The introduction of new flavors that are adapted to the local market also stimulates sales of flavored vodka. So, for example, in 2022. the manufacturer Absolut Vodka has updated the range of flavored vodka, improving the taste characteristics and updating the appearance of the bottle, which was extremely positively received by consumers. An important factor in the growth of demand for vodka in the region is also the active development of online trading, which has become especially important during the pandemic. Most consumers in the region opt for Western vodka brands. At the same time, the most popular flavors of flavored vodka are milk and vanilla, as well as products with the taste of fruits growing in the region.
In the European region, the increased interest in premium vodka and the developed consumption of cocktails are the main drivers of demand in the alcoholic beverages market. Vodka is considered a recreational drink among young and working consumers who lead a busy and intensive lifestyle. Moreover, the growing number of hotels, pubs, cafes and restaurants that use super premium-class craft vodka to offer customers unique tastes further contributes to the growth of the vodka market in the region. A factor that may negatively affect the demand for vodka in the region is the change in consumer preferences towards less strong alcoholic beverages and the tendency for a healthy lifestyle. Currently, non-aromatized vodka is the leader in the European market, but the companies producing flavored vodka note a multiple increase in sales at a relatively low base. An increasing number of European consumers are looking for new, more interesting offers compared to their usual non-aromatized vodka, which leads to an increase in sales of this product category. The most popular flavors of flavored vodka include apple, cranberry, red orange, honey, lime, vanilla and raspberry.
During the COVID-19 pandemic, consumer preferences at North American market have largely changed towards the consumption of alcoholic beverages at home instead of food and drink venues. This trend negatively affected the volume of vodka sales in restaurants and bars, at the same time, there was a multiple increase in sales through the e-commerce. Vodka is one of the most popular alcoholic beverages consumed in the region, while demand for it is growing largely due to the growing interest of consumers in authentic premium cocktails based on it. Over the past few years, there has also been an increase in the consumption of flavored vodka, and manufacturing companies are expanding their product range. For example, the Truly Hard Seltzer company (the Boston Beer Company brand) has released Truly Flavored Vodka with three flavors: strawberry lemonade, wild berries and pineapple mango.
The steady growth in demand for alcoholic beverages among all age groups of the population is a key factor contributing to the growth of the market in Latin America. The growing consumption of premium flavored vodka, together with the growing popularity of cocktail consumption, are also the main factors contributing to the growth of sales of flavored vodka. The main target audience of flavored vodka in the region is the population under the age of 35-40 years, while non—flavored vodka is the preferred choice of the older generation. Consumers mostly prefer to buy vodka in specialized alcohol stores and supermarkets, since these places offer a wider range of products. In addition, in such stores there are often consultants who tell in detail about each brand, thereby facilitating the choice of the buyer.
Global market
In 2022, global consumption of alcoholic beverages (excluding beer, cider, poiret and mead) increased by 0.7% in volume and by 6.0% in value to 5.3 billion dal and 985.7 billion US dollars. In 2018-2022, the consumption of alcoholic beverages in the world grew annually by an average of 0.1% by weight and by 1.9% by value. At the same time, in 2020, due to the impact of the COVID-19 pandemic, the global alcohol market showed a decrease of 5.0% in volume and 14.5% in value.
In 2022, the main share in the consumption of alcoholic beverages was demonstrated by wine, which accounted for 49.3% (2.61 billion dal) of the total volume. The consumption of RTD (Ready-To-Drink) alcoholic beverages accounted for 12.2%. This type of alcoholic beverages is one of the most growing — for 2018-2022, the average annual growth rate of consumption of RTD alcoholic beverages amounted to 16.0%, increasing from 356.2 million dal in 2018 to 645.1 million dal in 2022. Global consumption of vodka for 2018-2022 was 5.5–5.6% of total sales of alcoholic beverages and in 2022. it reached 294.8 million dal. In 2018-2022, the global vodka market grew annually by an average of 0.7% by weight and 2.4% by value.
The dynamics of the global vodka market repeats the trends of the industry as a whole. In volume, the average annual growth rate of global vodka consumption for 2018-2022 amounted to 0.7%.
The largest increase in consumption volumes for 2018-2022 was observed in the "premium" category, which showed steady growth of an average of 2.6% per year.
In 2022, the consumption of vodka of the "standard" category amounted to 187.6 million dal, which is 2.3% more than in 2021.
Flavored vodka accounted for 16.1% of the total global consumption of this type of product in 2022. The largest consumption of flavored vodka is observed in the Republic of Korea — 53% of the total market, as well as in Peru — 57%.
Europe is the leading region in terms of vodka consumption, which accounts for about 53.1% of the market for this type of product in volume.
In 2022, consumption reached 156.5 million dal, which is 3.1% more than in 2021. The average annual growth rate for 2018-2022 was 0.3%. The share of North America in the vodka market in 2022 was 25.9%, and its consumption in 2022 reached 76.4 million dal (-1.5% by 2021). At the same time, for 2018-2022, vodka consumption in North America increased annually by an average of 0.8%.
Vodka consumption in the Asia-Pacific region for 2018-2022 decreased slightly by an average of 0.5% per year. The Asia-Pacific region accounted for 12.2% of the global market in 2022. In 2022, the volume of the vodka market in this region amounted to 36.0 million dal, which is 6.4% more than in 2021.
The countries of Africa and the Middle East continue to demonstrate record high rates of growth in vodka consumption — by an average of 7.4% per year for 2018-2022. This region accounted for 4.6% of the global market or 13.7 million dal in 2022.
Latin America is also characterized by high average annual growth rates of vodka consumption. In 2018-2022, its consumption increased by 2.7% annually. The region's share in the global vodka market was 4.2%. Vodka consumption in Latin America in 2022 increased by 12.5% (+1.5 million dal), amounting to 12.2 million dal. The record reduction in consumption in 2020, which amounted to 23.4%, is due to the consequences of the COVID-19 pandemic.
Russia is the leader in vodka consumption in volume, holding about a quarter of the global market (26.3%). In 2022, vodka consumption in Russia amounted to 77.7 million dal, which is 5.8% (+4.3 million dal) more than in 2021. The average annual growth rate of consumption for 2018-2022 was 1.2%. Russian consumers prefer vodka of the "standard" category. Despite the depreciation of the ruble and the increase in the cost of production, distributors and manufacturing companies have been limiting the price increase for most alcoholic beverages for a long time, thereby maintaining the level of demand. However, a possible increase in the minimum retail price for strong alcoholic beverages in 2024 may negatively affect the dynamics of consumption.
The US share in the global vodka market was 24.2% in volumes. In 2022, consumption decreased to 71.4 million dal (or by 1.7% compared to 2021). The peak volume of vodka sales in the United States fell in 2020, when 73.0 million dal were sold in the country. The average annual sales growth rate was 0.7% for 2018-2022, despite the market decline in recent years. US consumers prefer premium vodka, which accounted for 40.9% of the US market in 2022. In the USA, there is a tendency among consumers to consume premium vodka, despite the rise in prices of alcoholic beverages, outpacing inflation in the country. Moreover, the resumption of public events contributes to the growth of alcohol consumption, including premium brands. Vodka remains the dominant alcoholic beverage in the United States, but in 2022 there was a decrease in sales of this alcoholic product, as consumer preferences are increasingly shifting towards whiskey.
Poland occupies 6.1% of the world vodka market in volumes. In 2022, the volume of consumption amounted to 17.9 million dal, a decrease of 2.9% compared to 2021. In 2022, there was a decline in sales of alcoholic beverages in Poland.
A significant increase in sales in the hotel and restaurant sector, caused by the reopening of catering facilities after the pandemic, could not compensate for the drop in retail sales. The main factor in the decline in sales in grocery retail was the introduction of additional surcharges to the sale price of strong alcohol in bottles of less than 300 ml in 2021, as well as an increase in excise taxes on alcohol in 2022. The decrease in the consumption of vodka as the main alcoholic product in 2022 was accompanied by an increase in sales of gin, rum and whiskey.
The vodka market of Uzbekistan occupies 3.5% of the world consumption of this type of product in volumes. In 2022, consumption amounted to 10.3 million dal, which is 1.3% more than in 2021. The most popular alcoholic beverage in Uzbekistan is strong alcohol, which accounts for almost 90% of alcohol consumption in the country. However, despite the high level of strong alcohol consumption, the specific alcohol consumption is generally lower than the neighboring countries of Central Asia. Moreover, Uzbekistan in 2023 adopted a law according to which the sale of alcohol is possible only to persons who have reached the age of 21. In recent years, beer and wine sales have shown high growth rates. In the segment of strong alcoholic beverages, there was a negative dynamics of vodka consumption, while the demand for some whiskey brands, including several Diageo brands, increased.
The UK closes the top five countries in terms of vodka consumption in 2022 with a share of 3.3% (9.7 million dal). In 2019-2022, the volume of sales of this type of alcohol in the country was stable (at the level of 9.6–9.8 million dal). In 2022, there was a slight decrease in total sales of spirits in the UK. At the same time, premium alcohol remains in demand among consumers in the UK, showing high growth rates. This trend is especially common among the younger generation, which increasingly tends to consume higher-quality alcoholic beverages, but in smaller quantities. The young population of the UK (under 25 years old) prefers vodka as the main strong alcoholic beverage, while older consumers prefer gin, lagers and white wine.
Import of vodka
In 2022, the world import of vodka amounted to 2.51 billion US dollars. In relation to 2021, the volume of world imports increased by 10.5% (+239.0 million US dollars). In 2018-2022, vodka imports increased by 0.8% annually.
In value terms, the largest importer of vodka in 2022 was the United States, which purchased these products for 494.5 million US dollars (19.7% of world vodka imports).
The top 5 importers also included France (6.7%), Great Britain (5.9%), Canada (5.1%) and Germany (4.7%). In total, the top 10 countries accounted for 55.6% of world vodka imports in value terms.
Since 2018, the import of vodka from France has increased significantly (+24.8% or +33.4 million US dollars) and Kazakhstan (+70.4% or +27.1 million US dollars). At the same time, there was a reduction in purchases from the United States (-11.9% or -67.0 million US dollars), Great Britain (-24.1% or -47.2 million US dollars) and Germany (-10.3% or -13.4 million US dollars). USA).
Vodka export
In 2022, the world export of vodka amounted to 2.36 billion US dollars. In relation to 2021, exports increased by 10.1% (+216.1 million US dollars). In 2018-2022, the volume of exports increased by 0.6% annually.
Sweden (20.0%), France (19.2%) and Poland (8.0%) accounted for the main share in the value structure of vodka exports — together they accounted for 1.1 billion US dollars (47.2% of world vodka exports). Russia took the 8th place in the rating, having exported products worth 97.8 million US dollars in 2022. Since 2021, the volume of deliveries in value terms has decreased by 41.9%. In total, the top 10 countries accounted for 79.2% of world exports.
In 2018-2022, France (+11.0% or +45.2 million US dollars), Italy (+43.2% or +36.5 million US dollars) and Poland (+19.1% or +30.5 million US dollars) increased exports most significantly. At the same time, there was a reduction in supplies from Russia (-35.0% or -52.7 million US dollars), Great Britain (-23.1% or -22.4 million US dollars) and Sweden (-1.7% or -8.0 million US dollars).
