BARLEY • MALT • BEER
information and analytical resource

On May 20, 2026, as part of the International «BEER» Forum, a press conference was held on the topic: «The Beer Market: 2025 Results and 2026 Realities.»
The event presented key industry data, expert analytics, and commentary from leading specialists in Russia’s brewing sector.

 Key Takeaways from Speakers:

🔻 Beer & Beer Beverage Production: First Decline in Years

— 2025, beer production (0.5–8.6% ABV) fell by 1% — to 781.1 million decaliters (dal)
2026 forecast: further decline of 3–5%
— Total projected production of beer and beer beverages for 2026: 850 million dal
— In the first 4 months of 2026, beer production decreased by 4%
— Imported beer accounts for 5–6% of the market — a stable share year-over-year

🔻 Beer Sales: Demand Is Contracting
— Retail sales of beer and beer beverages dropped by 15.7%, to 702.6 million dal
— Consumers are cutting back: price growth outpaces income growth
— Key trend for 2026: rise of non-alcoholic beverages

🔻 Rising Costs Across the Board
— Excise taxes + VAT account for ~1/3 of product cost
— Excises, logistics, wages, VAT, and capital expenditures are all increasing
— Raw materials (2026 forecast): feed barley — 12 000 RUB/t, malting barley ~18 000 RUB/t, malt — till 38 000 RUB/t

🔻 Raw Material Vulnerabilities
— Spring barley: surplus expected; sown areas up +5% (2026 forecast)
— Spring barley harvest: +2% to 15.4 million tons (2026 forecast)
— Malt production capacity: 1,900 tons/year
—44% of malt producers are integrated within brewing companies
— Malt demand in 2026: 1.2 million tons
— Hops: <5% covered by domestic production — critical dependence on imports remains

🔻 Investments “On Hold”
— No new breweries under construction — investments limited to equipment replacement
— Hop farming: 10–15 year payback period, high key interest rate, no state support
— Small breweries face limited access to credit; modernization funded from internal resources only

🔻 Regulatory Pressure
— Rising excises + regional restrictions on alcohol sales = market contraction
— Industry calls for dialogue with authorities, but no systemic measures implemented yet

Industry Snapshot (Union of Russian Brewers data) —  2,000+ brewing enterprises operate in Russia.  The sector contributes 40% of all excise revenue from alcoholic beverage producers.

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