In 2025, ethyl alcohol production in Russia decreased by 10.04% year-on-year, to 76.49 million decaliters, according to data from Rosalkogoltabakkontrol.
The main reason was a drop in demand for alcohol, especially vodka, as well as large inventories accumulated by producers at the end of 2024 in anticipation of an increase in the minimum retail price. Production of pharmaceutical alcohol fell even more sharply, by 56%, to 2.5 million decaliters.
Experts note that the decline was seasonal in nature: in the first half of 2025, the drop in demand amounted to 20-30% across all producers, forcing many to halt production. In the second half of the year, demand stabilized, but it could not fully offset the losses.
The high key interest rate of the Central Bank also deprived producers of the ability to build up inventories, while tighter control over pharmaceutical alcohol and the introduction of an excise tax of 740 rubles per liter for it limited output in this category.
In 2026, the decline in alcohol production will continue amid an overall correction in strong alcohol consumption and an increase in the excise tax on alcohol from July 1, when tax payment will be shifted from alcohol producers to alcohol manufacturers. This will require restructuring the industry's operations and may change procurement and production schedules. At the same time, experts note that the decline in production does not create serious risks for the market, since raw material supplies are agreed in advance.
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