Mixed drinks. Photo by Stephen Witherden.
According to a new “Research and Markets” report entitled “Vodka Market in Europe 2015-2019,” the market in terms of revenue for vodka in Europe is poised to experience a compound annual growth rate of 0.87 percent from now until 2019.
Two main factors are pushing growth; an increasing demand for high-end vodka, and an expanding growth of cocktail bars where people imbibe mixed drinks which often use vodka as their base.
Slowing demand however are the high taxes imposed on alcoholic beverages in the region. During the year 2014 the European Commission levied an increase of 23 percent on the hard liquor tax, thereby resulting in a price increase of about $5 for a half-liter bottle of vodka.
According to the study Eastern Europe was responsible for 89 percent of the vodka market share in 2014. The most popular kind of vodka in this region is unflavored. Russia, Poland and Ukraine are the market leaders in the region, but during the forecast period the study shows that their market growth will be in decline. Two things are contributing to the decline in growth: increased illegal alcohol trading, and increased accidents due to alcohol consumption.
