Torrential rain causes production halt
In July 2025, Russia's beer production showed no signs of slowing down. Contrary to some speculations, Russia's beer production increased significantly in 2024 and continued growing through mid-2025, with a 9% rise in production that allowed Russia to overtake Germany as Europe’s largest beer producer[1][2][4].
According to data from RATK, beer production in Russia reached approximately 9.1 billion liters in 2024, a 9% increase from the previous year[1][2][4]. This growth trend continued into the first half of 2025, with the production of fermented beverages as a whole increasing by 3.8%[1].
The surge in Russian beer production can be attributed to a combination of economic sanctions and restricted import options following Russia's geopolitical actions, notably the invasion of Ukraine[2]. These circumstances have pushed domestic production to ramp up.
However, there are factors that have contributed to a decrease in beer consumption and production in Russia. The cold summer and rising prices have been identified as key contributors[3]. As a result, the average price of 1 liter of beer in Russia in June 2025 was 194.5 rubles, which is 17.6% higher than the previous year[3].
Despite these challenges, beer remains the most popular alcoholic beverage in Russia, accounting for 43.2% of retail alcohol sales in monetary terms in January-June 2025[6].
Interestingly, the production of other fermented beverages such as cider and mead has seen growth. Cider production increased by 5.7% year-on-year in July, while mead production increased by 8.3%[3]. However, Alexei Neblosyn, an independent alcohol market expert, believes the positive trend for cider and mead is likely to be short-lived[3].
Recently, drinks from other categories have often been sold as cider in Russia, according to Alexei Neblosyn[3]. This trend could be a response to regulatory bodies stepping up their control over stronger beers, leading to a sharp increase in the production of alcoholic cocktails[1].
The excise tax on beer stronger than 8.6 degrees has increased from 51 to 56 rubles since the beginning of 2025[1]. This increase is considered the main factor behind the decline in beer production, particularly for stronger beers, with traditional beer losing 4.1% in production and strong beer dropping by more than 20%[3].
Igor Havskiy, another expert in the alcohol market, explains that the increased production costs have led businesses to raise their selling prices[1]. This price hike, combined with the increased excise taxes, has had a negative impact on the market, as evident since March[1].
In conclusion, while there are challenges affecting the beer industry in Russia, the overall trend continues to show growth. The production of fermented beverages in Russia decreased by 3.9% year-on-year in July 2025, but the beer sector remains resilient, with beer accounting for the majority of retail alcohol sales in Russia.
People who enjoy sports might find it interesting to note that the growth in Russian beer production is affecting other athletic pursuits. The increased price of beer in Russia is impacting the budgets of amateur and professional athletes who rely on sponsorships and endorsements from breweries. Additionally, the surge in Russian beer production could potentially influence the performance of national sports teams, as the financial strain on athletes might affect their training routines and overall preparation for international competitions.
