2020 russia confectionery market - flanders investment & trade
TRANSCRIPT
FLANDERS INVESTMENT & TRADE MARKET SURVEY
THE CONFECTIONERY
MARKET
IN RUSSIA
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Contents
1. CURRENT MARKET SITUATION. DYNAMICS OF CONFECTIONERY MANUFACTURING IN RUSSIA
(2014-2020) ..................................................................................................................................................................................................... 2
2. STRUCTURE OF RUSSIAN CONFECTIONERY MARKET IN 2016-2019 .............................................................................. 4
3. SEASON INDICATORS OF CONFECTIONERY BUSINESS IN RUSSIA
(CAUSED BY TRADITIONAL HOLIDAYS AND CLIMATE FACTORS) ..................................................................................... 5
4. CONFECTIONERY MANUFACTURING ALLOCATION TOP-5 OF FEDERAL DISTRICTS (2018-2019) .................. 6
5. THE LARGEST CONFECTIONERY KEY PLAYERS AT A GLANCE ........................................................................................... 8
6. CONFECTIONERY IMPORT IN RUSSIA IN 2018- 2019
BELGIUM CONFECTIONERY IMPORT IN RUSSIA ...................................................................................................................... 11
7. RUSSIAN CONFECTIONERY EXPORT IN 2019 ............................................................................................................................ 15
8. DYNAMICS OF PRICES GROWTH RATES FOR CONFECTIONARY IN RUSSIA IN 2017-2019 ............................... 17
9. RESUME: ESSENTIAL MARKET TRENDS & FORECAST 2020 ............................................................................................... 18
10. OPPORTUNITIES FOR BELGIAN COMPANIES ............................................................................................................................ 19
11. REFERENCES ............................................................................................................................................................................................... 20
12. USEFUL LINKS ............................................................................................................................................................................................ 21
FLANDERS INVESTMENT & TRADE
Economic Representation of Flanders
c/o Embassy of Belgium
Mytnaya st. 1, bld.1, entrance 2
119049 Moscow
RUSSIA
T +7 499 238 60 85
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1. CURRENT MARKET SITUATION. DYNAMICS OF CONFECTIONERY MANUFACTURING IN RUSSIA (2014-2020)
In 2019, in Russia, the volume of confectionery production increased by 1.2%, while in previous
years the growth rates were at the level of 3-6%. That’s why the growth rate of 1.5% has been
considered as insignificant, this growth was provided mainly due to a visible increase in the
confectionery products export volume. Among objective reasons that affected such a low
growth rates are a lack of growth in real disposable income.
The forecast for 2020 is cautious and realistic, taking into account different restrictive measures
in foreign trade and coronavirus period consequences, it is expected that the manufacturing
volume will amount to more than 4 mln.tons. (*)
Dynamics of confectionery manufacturing in Russia in volume/thousand tons (2014-2020)
Source: Rosstat, ASKOND, Finmarket*,http://www.foodmarket.spb.ru/
Russian Confectionery Market structure in depth in 2017-2019
In 2019, the Russian confectionery products export increased by 18% y-o-y and amounted to
640K tons. Import volume remained practically at the same level and totaled 348K tons, a growth
rate of 5% compared to 2018. The growth rate of the domestic confectionery production has
allowed to increase sales volumes both on the domestic and foreign markets. There is a positive
export tendency in the specified period. In 2018, the export growth rate also increased by 18.4%
compared to 2017 and totaled 512 K tons, a peak since 2014.
34223465
3553
3675
38963955
4040
3100
3200
3300
3400
3500
3600
3700
3800
3900
4000
4100
2014 2015 2016 2017 2018 2019 2020 Forecast
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Source: Ascond, Finmarket *
Confectionery market capacity in 2017-2019
In 2019, the market capacity of the Russian confectionery industry totaled 3 mln. 663K tons: the
export volume amounted to 640K tons (+23% y-o-y), the import volume remained practically at
the same level and totaled 348K tons (+8% y-o-y).
Source: Ascond, Finmarket *
456
522
640
3220
3374
3315
295
332
348
-1000 -500 0 500 1000 1500 2000 2500 3000 3500 4000
2017
2018
2019
Import Domestic consumption Export
3500
3700
3663
3700
3400
3450
3500
3550
3600
3650
3700
3750
2017 2018 2019 2020Forecast
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It is expected that in 2020, the market volume will increase to 3.7 mln.tons. However, the
confectionery market is saturated and every percentage increase can be considered as
significant. The total number of companies on the market is around 15 000.
In 2019, the average per capita consumption increased by 2.4% and reached the level of 25.2 kg
which is 2.4% more than in previous year. In 2020, the consumption is projected to grow to 25.5
kg per person.
2. STRUCTURE OF RUSSIAN CONFECTIONERY MARKET IN 2016-2019
On the Russian market, confectionery products are traditionally sorted into the following three
groups: chocolate, sugar confections, and flour confections (long-term and short storage
products).
In the structure of Russian production, there is a clear domination of chocolate and sugar
confectionery. For example, in 2018, their share totaled 50% of the market in terms of volume,
the share of long-term Flour confectionery (cookies, gingerbread, sweet cookies, waffles and
other products) amounted to 41% and the share of short-term flour confection - 9.2%
accordingly.
In 2019, in Russia, the manufacturing volume of flour confections saw a 2.8% year-on-year
increase and totaled more than 2 mln. Tons (1995K tons in 2018 respectively). The highest growth
rates were fixed in the waffle sector, as their manufacturing increased by 11% y-o-y and
amounted to 272 K tons, and bakery products with long - term storage (an increase of 13.4%
and 326K tons). In 2019, the manufacturing volume of cookies amounted to 705K tons, a y-o-y
growth of 4%.
According to Ascond Association, in 2019, the share of flour confectionery products in the
market is amounted to around 49% in terms of volume and about 30% by revenue (*).
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Source: Indebox, http://www.foodmarket.spb.ru/ **
3. SEASON INDICATORS OF CONFECTIONERY BUSINESS IN RUSSIA (CAUSED BY TRADITIONAL HOLIDAYS AND CLIMATE FACTORS)
The lowest manufacturing/sales level
Peak manufacturing
Transition period
Normal level of manufacturing
Description/Factors that affect manufacturing/sales activity
January Low-season, Russia is on New Year Vacations, usually till 08 of January. All the sweets were purchased in December….
February 14th of February, Men’s Day
March 8th March, Women’s Day,
April Easter Day (Easter cakes are very popular), but the demand
for pastry confection is declining
May Transition period, preparation for Summers season,
transition from cream products for ‘light’ deserts
June Confectionery is replaced by fruits (cherries and apricots are
the most popular)
49.8
49.8
48.5
40.2
41.2
42
10
9
8.5
0 20 40 60 80 100 120
2016
2017
2018
Choco and sugar confectionery
Flour long-term storage confection
Flour short storage confection
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July Low season, Vacation period
August Low season, Vacation period
September Manufacturing is increasing, 1st September, Beginning of
school period
October Teacher's day, Other professional holidays
November Preparation for Peak-season
December The highest sales volume, coming New Year Holidays
Source: https://www.cporu.ru/articles/sezonnost-sprosa-na-konditerskie-izdeliya
4. CONFECTIONERY MANUFACTURING ALLOCATION TOP-5 OF FEDERAL DISTRICTS (2018-2019)
Source: Wikitravel
Federal
district
Color on
map
Administrative
center
Share in domestic
confectionery
manufacturing in
Volume
Additional info
Central
Moscow 42% Leaders: Moscow region – 26% of District manufacturing, 11% of all Russia, Voronezh region, Moscow
Volga
Nizhny
Novgorod
20% Leaders: Penza and Samara region
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Siberian
Novosibirsk 10% Leader: Novosibirsk and Kemerovo regions
Northwestern
St.Petersburg 10% Leader: St.Petersburg,
Southern
Rostov-on-
Don
8% Leader: Krasnodar region
Ural
Ekaterinburg 7% Leader: Chelyabinsk region
Source: http://www.foodmarket.spb.ru/ ***
Central district:
In the Central Federal district, around 40% of the confectionery products are manufactured in
Moscow and the Moscow region which are together the largest manufactures and at the same
time consumers of confectionery products in Russia.
The leader both of this district and Russia as a whole is the Moscow region, its share has
achieved 26% of total regional confectionary manufacturing and 11% of all Russian
manufacturing in terms of volume. In the products structure of Moscow region, the share of
packaged chocolate and chocolate products totaled 35%. Among the leading manufacturers in
the region are Mars LLC, Perfetti van Mele LLC, AKF LLC and Barry Callebaut NL Russia LLC.
Source: http://www.foodmarket.spb.ru/ ****
Moscow region421000
26%
Voronezh region
29350018%
Moscow 233500
14%
Vladimir region200333
12%
Other488000
30%
Central district manufacturing allocation in thousand tons
Moscow region Voronezh region Moscow Vladimir region Other
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On second place is the Voronezh region, which accounted for 7.5% of the total manufacturing
volume of Russia and 18% of Federal district. In this region, the facilities of one of the largest
domestic manufacturers, ‘KDV-Group’ Holding, are located. In the region over the past five years,
production volumes have increased four times. In the production structure, the share of
confectionery products without cocoa equaled 50%, in particular sweet share totaled 33%, and
the production of gingerbread, waffles and cookies 45% respectively. (****)
Volga district: More than 10% - of Bakery products in Russia
The Penza region provides more than 4% of the production volume of Russia (mostly wafer,
ginger bread and cookies/biscuits) and the Samara region – more than 3% of the production
volume of Russia accordingly (mostly cocoa, chocolate and sugar confectionery).
North-West district: In the top three regions for the Russian confectionery production, we find St. Petersburg with
a share of 6.4% of manufacturing in Russia. At the same time, this city provides 64% of
confectionery manufacturing in the North-West district. According to the results of 2018, almost
70% of the products produced in the Northern capital are cookies, gingerbread and waffles.
Southern district: In 2018, the Krasnodar Region provided 3% of all Russian confectionery production.
All the above mentioned Russian regions, provides more than 50% of produced confectionery
manufacturing in Russia (****) Total number of Russian regions: 85.
5. THE LARGEST CONFECTIONERY KEY PLAYERS AT A GLANCE
In the Russia confectionery market, the largest Russian player is ‘Objedinennye Konditery’
(United Confectioners) Holding company (Alenka, Babaevsky, Krasny Oktyabr and Rot Front
trademarks) and its subsidiaries.
The market key players as ‘United Confectioners, MARS LLC, Nestlé Russia LLC’, and ‘Mondelez
Rus’ are providing around 60% of the total confectionery supply in terms of volume. The market
players such as Konti Rus, Ferrero Russia and Perfetti Van Melle can be also considered as key
market players. (**)
In Russia, there are Russian ‘daughter companies’ of the world's food Giants, from whom a
significant part of their business is related to confectionery manufacturing.
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In terms of revenue, Nestle Russia is on Top of the list with a market share of 24% or 133 bln.
RUB in terms of revenue, followed by MARS LLC and ‘Mondelez Rus’ with a share of 20% and
9% and 111 bln.RUB and 49 bln. RUB respectively.
In 2018, the revenue of Nestle Russia LLC increased by 7.8% y-o-y and achieved 133.14 bln.RUB
(the decrease in revenue in 2017 was 12.5%). The company's gross profit increased by 14% and
totaled 66 bln.RUB (or more than 1 bln US doll), and its net income increased by 1.5 times and
amounted to 4.3 bln.RUB. (www.finmarket.ru ***)
The revenue of Mars LLC (‘daughter’ of Mars) in 2018 increased by 8.5% to 111.27 billion rubles (in
2017-decreased by 0.03%). The gross profit increased by 4.7% to 56.76 billion rubles. The net
profit fell to 14.06 billion rubles from 17.39 billion rubles a year earlier.
Objedinennye Konditery (UNICONF, United Confectioners), Russian largest manufacturer
Headquarter: Moscow, Russia
17th place in the ranking of ‘Top-100 confectionery companies in the world’ List-2018
Net Sales (Millions): 1,735 US dollars
Top-Management: Sergey Nosenko, Chairman
Number of Employees: 22 000
Point of sales: 170 000
Number of Factories: 19
Distribution centers: 11
Manufacturing volume: 350 000 tons
In 2018, the share of United Confectioners totaled 6% of the Russian confectionery market or
34 bln. RUB in terms of revenue.
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Source: https://3dpro.info/
Source: https://www.testfirm.ru/
United confectioners346%
MARS Russia11120%
Nestle13324%
Mondelez499%
Ferrero418%
Konti4
1%
Perfetti Van Melle102%
Other14326%
MARKET STRUCTURE BY MANUFACTURERS IN 2019 (IN TERMS
OF REVENUE IN BLN.RUB)
7.2
18.4 18.3
16
7.48.4
5
5.2
15.7
13.5
11.7
14.5
9.88.7
7.2
3.2 3.2 3.2 3.2
7.2 7.26.7 6.2 6.2 6.2 6.2
6.7
6.7
Nestle MARS Mondelez Ferrero Babaevsky Krasny Oktyabr Perfetti VanMeele
ROA ROS Industry average (ROA) Industry average ROS
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In 2018, most key operation efficiency indicators of the largest confectionery manufacturers, as
Return of sales (ROS) and Return on assets (ROA), were higher than similar industry average
indicators (here indicators of 21 organizations with revenue of more than 2 bln rubles, engaged
in the activity ‘Production of chocolate and sugar confectionery’, on the diagram red and
magenta trend lines).
MARS LLC (Russian ‘daughter company’) and Russia BABAYEVSKY CONFECTIONARY CONCERN
have the highest ROS ratio value 15.7% and 14.5% accordingly. According to MARS report, one
of the most visible financial indictor ‘Net profit margin’ has amounted to 12.6% (average industry
– 2.4%).
6. CONFECTIONERY IMPORT IN RUSSIA IN 2018- 2019.
BELGIUM CONFECTIONERY IMPORT IN RUSSIA
In 2019, the share of imported products in the structure of Russia’s confectionery domestic
market amounted only to 9.5% in terms of volume, around 49% of confectionery products
accounts for chocolate and sugar confections.
The key importers are Alfred Ritter Gmbh Co Kg (Germany, ‘Ritter Sport’ trademark), Unigra S.r.l,
Barry Callebaut (Switzerland, Barry Callebaut trademark), and ‘Zentis GmbH & Cо,’ “Lindt &
Spruengli AG’. (**)
In 2018, Imports of confectionery products increased by 17% in terms of volume and amounted
to 332 K tons. In 2018, the Top-4 exporters are Germany, Poland, Belarus and Italy (around 60%
in total imports in terms of value). In 2019, Import volume remained practically at the same level
and totaled 348K tons, a growth rate of 5% compared to 2018.
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(Source: https://ru-stat.com/)
(* here and further: Cocoa powder, containing added sugar or other sweetening matter, other
preparations in blocks, slabs or bars weighing more than 2 kg, other in blocks, slabs or bars (Filled);
other preparations in blocks, slabs or bars (Not filled), Other)
In 2019, the Import volume to Russia of products from the Category group ‘Chocolate and other
food preparations containing cocoa’ amounted to 583 mln.US doll with a total weight of 127 K
tons.
In the structure of imported volume by country in terms of value, at the first place Germany
(with a share of 33% or 189 mln.doll), in second place Poland (11% and 65,8 mln. doll.
respectively), followed by Italy (10% or 59 mln.doll), Belgium is occupied the 5th place (8% or 45.8
mln.)
Germany18933%
Poland65.811%
Italy59
10%
Hungary143%
Belgium45.8
8%
Belarus56
10%
Kazakhstan183%
France25.44%
Switzerland13.62%
Austria13.32%
Other83
14%
Chocolate* import structure by value in 2019 (in mln.US doll.)
Germany
Poland
Italy
Hungary
Belgium
Belarus
Kazakhstan
France
Switzerland
Austria
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Import dynamics of Chocolate products (2015-2019. Thousand tons/$mln.)
Source: (FTS, Russia), https://ru-stat.com/)
Import Dynamics of Chocolate & Pastry products from Belgium to Russia in the period 2015-
2019
Choco import 2018 2019 Growth rate in %
Import in volume, tons
7 K 7.9K +13%
Import by value, mln (US doll.)
42 45,8 +9%
(Source: https://ru-stat.com/)
For the period 2015 – 2019 the import volume from Belgium to Russia of products from the
group ‘Chocolate and other food preparations containing cocoa’ amounted to around 175 mln.
USD with a total weight of 32 K tons.
Were mainly imported: ‘Other confection’ (56%), ‘Other preparations in blocks, slabs or bars
weighing more than 2 kg’ (41%).
In 2019, the import of the Category group products ‘Chocolate and other food preparations
containing cocoa’ from Belgium to Russia increased by 13% in comparison with 2018 and
equaled 7.9 thousand tons (7 in 2018). In terms of value, the import increased by 9% from 42
mln. USD in 2018 to 45,8 mln. USD in 2019; (Source: https://ru-stat.com/)
72
74.7
100
120
127
348
341
462
542
583
0 200 400 600 800
2015
2016
2017
2018
2019
Value ($mln.)
Volume (thousand/tons)
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(Source: https://ru-stat.com/)
In 2019, the import to Russia from Belgium from the group ‘Bread, pastry, cakes, biscuits and
other bakers' wares’ amounted to 13.5 mln.us doll., which is a drop of 21% y-o-y as in 2018 it
amounted to 17 mln.Us doll.
Were mainly imported: ‘Other pastry’ (77%), ‘Sweet biscuits; waffles and wafers, Sweet biscuits’
(19%). In the import structure by country (in this category group), at the first place is Poland
(with a share of 32%), followed by Germany (18%). Belgium is for Russia partner number 5 with
a share of 3.6%. (Source: https://ru-stat.com/)
Belgium chocolate export allocation by Russian regions in 2019 (in mln.doll.)
Among the most important Russian regions-consumers of imported Belgian chocolate are : The
Moscow region, Vladimir region, Moscow, Saint-Petersburg, Chelyabinsk region, Krasnodarskiy
Krai. It should be specified that in 2019, the share of Moscow and the Moscow region in the
import structure of Belgian chocolate in terms of value amounted to 58% (37% or 17 mln. doll
and 21% or 9.3 mln.doll. respectively). The share of the Top-3 regions -consumers of imported
Belgian chocolate (both Moscow region, Vladimir regions and Moscow) amounts to around 90%.
Below you find the diagram with results for 2019. (Source: https://ru-stat.com/)
27.4 26
34
4245.8
14 15.4 16 1713.5
0
5
10
15
20
25
30
35
40
45
50
2015 2016 2017 2018 2019
Chocolate Pastry
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(Source: https://ru-stat.com/)
7. RUSSIAN CONFECTIONERY EXPORT IN 2019
In 2019, the confectionery export from Russia set a new record as it increased by 16% and
achieved the level of 640 K tons in terms of volume and by 13% or 1,3 bln. US doll in terms of
value (1,17 bln.doll accordingly).
Over the past three years, Russia has continuously upgraded record levels for the export volume
of confectionery products, in the period 2016-2019, the exports increased by 50% in terms of
value.
In 2019, Russian confectionery products were exported to 90 countries. The largest importers
of Russian confectionery are Kazakhstan and Belarus, their share amounts to 24% and 14%
accordingly. In 2019, Kazakhstan increased its procurement volume by 15% to 317 mln.US.doll,
Belarus achieved the same level compared to 2018 or 188 mln.doll. On the third place and one
of the most important Russian confectionery importers is China with a growth rate of 16% y-
oy and the Russian export volume amounted to 143 mln last year. The Top-5 importers is also
included Azerbaijan (81 mln. doll. and +15% y-o-y) and Kyrgyzstan (71 mln.doll, +6.7% accordingly).
In the structure of Russian exports, the largest share or 55% is accounted for chocolate
confectionery products. At the same time, the most visible upgrade dynamics was shown by
pastry confectionery products whose export increased by 16% y-o-y in terms of value.
In 2019 a growth was seen in every segment, the export of chocolate and confectionery products
with cocoa increased by 14% and totaled 719 mln.doll.
Moscow region16.937%
Vladimir region14.231%
Moscow9.3
21%
St.Petersburg1.74%
Chelyabinsk region…
Krasnodar region1.53%
Other0
0%
Moscow region Vladimir region Moscow St.Petersburg
Chelyabinsk region Krasnodar region Other
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In 2019, the export volume from Russia of products from the Category group ‘Chocolate and
other food preparations containing cocoa’ amounted to 710 mln.US doll with a total weight of
276 K tons.
In the structure of exported volume by country in terms of value, at the first place Kazakhstan
(with a share of 19% or 134 mln.doll), on second place China (16% and 112 mln. doll. respectively),
followed by Belarus (9% and 66.4 mln.doll).
Generally, Russian chocolate confectionery is exported to ‘traditional’ markets as Kazakhstan,
Belarus and other States of the Customs Union, but, in recent years, there have been new
distribution channels and export markets. Thus, the indicators of foreign trade with China have
significantly increased. (Source: http://aemcx.ru )
(Source: https://ru-stat.com/)
However, the main customers of Russian sweets are still the countries that are members of the
Customs Union. They account for more than 50% of foreign confectionary trade turnover.
In 2019, it should be noted that the most important export markets of the Russian chocolate
products were the neighboring countries which are the members of Customs Union and CIS
countries: Kazakhstan, Belarus (19% and 9.4% respectively). In 2019, the supplies of Russian
chocolate to Kazakhstan in terms of value increased by 13%. However in 2019, Belorussia
decreased purchases of Russian chocolate both in value from 77 mln.doll in 2018 to 66.4 mln.
doll in 2019. Meanwhile the export of chocolate from Russia to Gulf countries demonstrated a
significant growth, it increased by 27% and totaled 31 mln.doll with UAE and with Saudi Arabia,
there was fixed a 15% of increase and equaled 28.2 mln. US doll. (Source: https://ru-stat.com/)
Kazakhstan13419%
China11216%
Belarus66.49%
Azerbaijan466%
Uzbekistan375%
Kyrgystan355%
UAE314%
Saudi Arabia
284%
Georgia26.74%
Ukraine264%
Mongolia25.74%
Armenia25.44%
Other116.816%
Chocolate export structure by value in 2019 in mln.doll
Kazakhstan
China
Belarus
Azerbaijan
Uzbekistan
Kyrgystan
UAE
Saudi Arabia
Georgia
Ukraine
Mongolia
Armenia
Other
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In 2019, export of pastry confectionery showed a growth rate of 16% and amounted to 424
mln.US doll. in terms of value and 263 K tons. In Top-3 countries -importers, there are members
of Eurasian Economic Union (EEU): Kazakhstan (33%), Belarus (20%), Kyrgyzstan (7%).
8. DYNAMICS OF PRICES GROWTH RATES FOR CONFECTIONARY IN RUSSIA IN 2017-2019
The highest prices for confectionery were recorded in two federal districts: The Central district
(due to higher prices in Moscow and Moscow region) and Far Eastern district (due to the high
distance from the main production facilities).
In 2019, the chocolate bars price amounted to 983 RUB per kilogram in Moscow (+15% compared
with the average price for Russia), and 970RUB in St. Petersburg (+13.5% to the average). In 2019,
in Moscow the price for cookies amounted to 234 rubles per kilogram (+53%, whereas in Saint
Petersburg it was fixed on the level of 178 (+16.3%).
Dynamics of average consumer prices for chocolate bars
Source: https://www.gks.ru/
Dynamics of average consumer prices for cookies
Source: https://www.gks.ru/
596762 830 832 854
23
28
9
0.2 3-5
15
35
0
200
400
600
800
1000
2015 2016 2017 2018 2019
Consumer prices RUB/1kg growth rate in %
123140 147 149 153
1614
5 0.7 3
-5
5
15
25
35
45
0
50
100
150
200
2015 2016 2017 2018 2019
Consumer prices RUB/1kg growth rate in %
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In the specified period, in the Russian market, prices have been growing throughout the year.
In 2018, prices for short storage flour products, cookies, gingerbread and sweets increased
mainly in the second half of the year. They also jumped in January 2019. This is primarily due
to the increase in raw material prices. However, the peak of the growth rate of confectionery
products prices was fixed in the 2015-2016 crisis years with an increase in exchange rates (and,
as a result, an increase of imported ingredients cost), a decrease in consumer demand and the
sanctions imposed. (Source:¹)
9. RESUME: ESSENTIAL MARKET TRENDS & FORECAST 2020
• The Russian Chocolate market is highly consolidated. Market key players as ‘United
Confectioners, MARS LLC, Nestlé Russia LLC, and ‘Mondelãz Rus’ are providing around
60% of the total confectionery supply in terms of volume.
• At the same time, there is a market saturation in all segments that leads to increased
competition and price wars, especially in large cities between network retailers. Both
retailers and market leaders, in their attempts to attract the customers attention, are
decreasing their margin and definitely, only consumers benefit this market situation.
• During recent years export of confectionery from Russia was growing and now exceeds
import.
• The growing interest of the Russian consumers to healthy living and nutrition: The
importance of the ‘natural’ trend is also increasing and opens new development
opportunities for Russian confectioners. Many manufacturers consider the production
of functional confectionery to be a strategic goal. The interest of the consumers to
healthy confectionery allowed to diversify the distribution channels (drugstores, fitness
centers, diet and bio chocolate in internet stores).
• Cross-category competition. Manufacturers today compete not only with other
companies operating on the confectionery market, but also with manufacturers from
other food products sectors (there is a wide range of ‘to go’ format products and it’s
not only chocolate, but also different snacks, ice cream, yoghurts).
• Trend for snacking. All kind of snacks are industry drivers as it affects product size,
packaging, format of retail sales points.
• In addition, indirect competitors are restaurant businesses that offer sweet products
(cakes, ice cream, pastries, etc.) or possibility of a quick snack. The market of mini-
bakeries and confectioneries is actively growing and grabbing a part of the consumption
of confectionery products. As to gift confectionery, the cross-category competition is
also taking place, as an expensive cake or chocolate box can successfully compete with
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gift certificates, cosmetics boxes, cards, tea or coffee sets. For this reason, manufacturers
of confectionery products are permanently experimenting with design, shape and
packaging materials to make it more festive.
• Innovative trends in healthy lifestyle confectionery products and ingredients. Focusing
on the products for a healthy lifestyle as gluten-free, NO-yeast and Lactose-free
products that help to create new recipes for ‘light’ deserts, these products are
increasingly in demand as manufacturers and suppliers have become more active in
expanding the range of products with gluten-and lactose-free products and replacing
dairy fats and protein with vegetable analogues. There are more and more products with
sticker ‘For Vegans’, including vegan ice cream which is based on soy milk (chocolate and
vanilla). Conclusion that vegan products need to be made for a specific customer, and
this is mainly the Internet, Stanislav dobrodey reports. (Sources: ²)
• Packaging. currently, the Packaging criteria are considered as a primary channel for
promoting products on the supermarket shelves. The manufacturers are using in a very
active way all kind of icons to make the choice easier for consumers. For example, on
the confectionery packaging there are signs such as ‘0% fat’, ‘no GMO’ and so on.
• Social media. Another promotional important market tool are social networks as a
channel of direct communication with consumers. In that way the manufacturers have
direct access to brand customers, it is an ideal platform for marketing activities and
interaction processes that are mutually beneficial and interesting both for customers
and manufacturers.
(Sources: ᶾ)
10. OPPORTUNITIES FOR BELGIAN COMPANIES
- Growing sales of confectionery in HORECA sector.
The fast- food segment is developing further and the visible growth of coffee chains stimulates
the sales of confectionery and sweet pastries in the HoReCa segment. Ready-made confectionery
is also actively purchased by retail operators who are considering food service development as
one of priorities. In the ready confectionery products category, there are the traditionally
popular Cheesecakes, Strudels and Donuts. These products remain in the top sales in the ready-
made pastry category, in the baking category - croissants, maple pecans and muffins. In summer
season, it’s obviously pies and cakes, which contain a lot of berries, fruits, nuts, these products
are traditionally very popular in HoReCa sector. (Sources: ²)
- Confectionary ingredients.
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There are many opportunities in the sector of confectionery ingredients, this sector is
considered as one of the most profitable product categories. There is an increased demand in
the HoReCa segment for specialized confectionery ingredients primarily due to the growing
skills of professional confectioners. As they are training in Europe, taking part in international
competitions or master classes, they get to know a lot about product specifications. In the
market situation of tough competition atmosphere, confectioners are pushed to create unique
desserts and they need products that make it possible to create a dessert that is absolutely
different from what the competitors offer. According to professional estimations, the most
popular products in this category are the following ones:
• chocolate, decors and fillings,
• spicery and spices for confectionery production,
• puff pastry,
• frozen fruit and berry purees,
• cream and cream cheeses, which confectioners use for making cakes and pastries,
• syrups with different flavors.
- ‘Healthy lifestyle products’
Taking into consideration the trend for healthy lifestyle, there is also an upgrade of the
ingredients assortment such as artisanal oils (with oils from various types of nuts, seeds,
avocado and argan), sugar substitute-syrups, milk alternatives, vegan products, products with a
low- sugar content. In this ‘healthy products’ niche, there is a growing interest for Chia seeds
and almond milk. According to industry experts, it is expected that within three to five years
the turnover of these products will grow at least twice year after year. (Sources: ²)
- Niche solutions
Consumers fatigue from mass production and they seeking for new optimal solutions, new taste
sensations and new niche products. The manufacturers usually offer such niche confectionery
products that can be purchased in their flagship stores, premium network retailers, online stores
or directly from the manufacturer via the Internet. This businesses is usually operating in the
upper-medium/premium price segments.
11. REFERENCES
* http://www.finmarket.ru/news/5180541
** http://www.foodmarket.spb.ru/archive.php?year=2020&article=2571§ion=2
*** http://www.finmarket.ru/news/5052142
**** http://www.foodmarket.spb.ru/archive.php?year=2020&article=2642§ion=2
https://www.uniconf.ru/
http://aemcx.ru
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https://www.cporu.ru/articles/sezonnost-sprosa-na-konditerskie-izdeliya
https://3dpro.info/
https://www.testfirm.ru/
https://ru-stat.com/
https://sfera.fm/articles/konditerskaya/sezonnost-na-konditerskom-rynke
¹ http://www.foodmarket.spb.ru/archive.php?year=2020&article=2607§ion=2
² https://www.cafe-future.ru/analytics/pribavlyayut-v-vese/
ᶾ https://sfera.fm/articles/konditerskaya/trendy-i-osobennosti-potrebitelskogo-povedeniya-na-
konditerskom-rynke
12. USEFUL LINKS
ASSOCIATIONS
ASCOND
Address: 125047, Moscow, 1st Tverskoy Yamskoy pereulok, 18/3
Tel/Fax: +7 499 250-19-39, +7 499 251-77-64
Email: [email protected]
URL: www.ascond.ru
CONFECTIONARY FACTORIES
OBYEDINENNYE KONDITERY - UNICONF 115184, Moskou, 2-Novokuznetsky per.13/15 Tel: +7 (495) 739-49-49, 730-69-90 Fax: +7 (495) 730-69-46 [email protected] [email protected] [email protected] https://eng.uniconf.ru/ UNICONF is the largest confectionery holding in the Eastern Europe and the leader on the Russian confectionary market. Groups 19 Russian factories & 8 logistic centers, including the top Moscow confectionery enterprises KRASNY OKTYABR, ROT FRONT, BABAEVSKY Confectionery Concern & RUSSKY SHOKOLAT Established in 2002; KRASNY OKTYABR Confectionery Factory 119072, RF, Moscow, Bersenevskaya nab., 6 Tel: +7 (495) 982-56-01 [email protected]
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[email protected] www.redoct.msk.ru http://www.uniconf.ru/factories/krasny-octyabr/ Since 1851; 3'000 employees ROT-FRONT 113184, RF, Moscow, 2-Novokuznetsky per., 13/15 Tel: +7 (495) 951-07-37, 951-58-10; 951-84-78 Fax: +7 (495) 953-91-63 [email protected] [email protected]
http://www.uniconf.ru/factories/rot-front/
Since 1826; 2'500 employees BABAEVSKY Confectionery Concern 107140 Moscow, ul.Krasnoselskaya 7 Tel/Fax: +7 (499) 264-43-10, 264-49 78 [email protected] [email protected] www.babaev.ru http://www.uniconf.ru/factories/babaevsky/ Since 1804; 2'300 employees RUSSKY SHOKOLAT Factory 121357 Moscow, ul.Vereiskaya 29, str.143 Tel: +7 (495) 637-66-61, 637-66-62, 637-66-63 Fax: +7 (495) 637-66-83 [email protected] [email protected] Supplies Dept: Tel: +7 (495) 637-67-22 http://www.uniconf.ru/factories/russky-chokolad/ www.ruschoc.ru Since 1998 ALEXANDRA LE CHOCOLAT 141980 Moscow region, Dubna, ul.Priborostroiteley 3a, office 707 Tel: +7 (916) 505 34 10, +7 (916) 505 29 08, +7 (965) 341 59 39 [email protected] Gen.Director: Thierry Pete [email protected] http://alexchoco.ru/ Production of Belgian chocolate since 2010 B&B 142111 Moscow region, Podolsk, Ryazanovskoe shosse 1 Tel: +7 (495) 542-40-43, +7 (495) 996-83-27, +7 (499) 400-51-94, +7 (499) 400-51-95 [email protected] Commercial Dept:
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Elena Zavarzina [email protected] http://www.pkf.ru/ One of the largest enterprises in the industry, former Podolsk experimental confectionery factory, founded in 1929. BOGATYR Confectionery Factory 124460, Moscow, Zelenograd, ul.Konstruktora Guskova 8, str. 10 Tel: +7 (499) 734-56-22, (499) 736-78-42, (495) 944-54-97 [email protected] [email protected] http://www.bogatire.ru/en/ One of the leading confectionery companies BRITAREV Chocolate Manufacture Moscow, ul.Derbenevskaya 20 Tel: +7 (499) 705-19-13, +7 (926) 949-11-82 [email protected] Gen.Director: Konstantin Britarev https://britarev.com/ Unique craft chocolate by 19th century technology CHEREMUSHKI KBK 109377 Moscow, ul.Akademika Skryabina 9, k.2 Tel: +7 (495) 709 88 01 [email protected] [email protected] https://www.slasti.ru/ One of the top Moscow bakery & confectionery holding; since 1973 CONFAEL Group 123022 Moscow, ul.2-Zvenigorodskaya 13, str.42 Tel/Fax: +7 (495) 777 13 33, 745 12 89 [email protected] [email protected] www.confael.ru One of the top chocolate factory, premium sector FERRERO Russia 125047 Moscow, ul.2-Brestskaya 8, floor 11 Tel/Fax: +7 (495) 961-24-00, 961 24 10 [email protected] [email protected] http://www.ferrero.ru One of the largest enterprises of Ferrero Group in the world; Since 1995 in Russia; Production in Vorsha, Vladimir Region FRENCH KISS Office & Production:
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117418 Moscow, ul.Zyuzinskaya 6, k.2 Tel/Fax: +7 (495) 660-02 27, (495) 627 60 31 [email protected] [email protected] Dept.Purchases: Tel: +7 (495) 660 02 07 #111 [email protected] www.frenchkiss.ru Exclusive hand-made chocolates; Retail network of 27 boutiques in Moscow; Internet-shop FRUZHE Confectionery Factory 119607 Moscow, ul.Ramenki 17, k.1 Tel: +7 (495) 980-66-36 [email protected] Production: Kaluga region, Dobroe 140 Tel: +7 (484) 39 9 34 21 http://naturprod.su/ www.fruzhe.ru One of the top producers of fruits & nuts in chocolate, TM: Naturalnye produkty FRYAZINSKAYA Chocolate Factory 141190 Moskou regio, Fryazino, ul.Ozernaya 6, str.3 Tel/Fax: +7 (495) 781 74 08, 979 07 23 [email protected] [email protected] www.f-c-f.ru Producers of premium chocolates, TM: Dy'Nastie, SunMilk; since 2002 HLEBPROM 127254 Moscow, Rustaveli ul.14, str. 6 Tel: +7 (495) 789-46 32, 789-46 33 [email protected] For Suppliers: Tel: +7 (495) 789-46-23 Fax: +7 (495) 789-45-61 [email protected] [email protected] https://www.hlebprom.ru/ Top confectionery producer since 1982; Over 4,000 employees; 4 production sites in Noginsk, Krasnogorsk, Yartsevo (Moscow Region) and Chelyabinsk Tarts, biscuits, bakery products, 14 brands; TM: Mirel, Мой, Усладов, Русская нива, Частная галерея, Merba, Carr’s, Tago, Jules Destrooper, Dr. Körner, Jr. Korner, ELMARINO, LaKukuruza, Dooti Donuts ICHOCO Moscow region, Schelkovo, ul.Moskovskaya 77, str.1 Tel: +7 (495) 660-37-18 [email protected]
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http://ichoco.ru/ Exclusive chocolate gifts KOLOMENSKOE Bakery & Confectionery Complex 115230 Moscow, pr.Khlebozavodsky 7 Tel: +7 (499) 613-85-44, 613-54-56, 613-87-74 [email protected] [email protected] [email protected] For Suppliers: http://www.kolomenskoe.ru/suppliers/ http://www.kolomenskoe.ru/ One of the top Moscow bakery & confectionery producers, since 1956; leader in the sector of waffle tarts; 1'150 employees MARS Russia Central Office: 125315 Moscow, Leningradsky prosp.72/1 Segment MARS Chocolate: Tel: + 7 (495) 721 21 05, 937 27 Production: ODINTSOVSKAYA Confectionery Factory 143040 Moscow region, Odintsovsky r-n, Malye Vyazemy 20 www.mars.com Top producer, No 2 in Russia, 18% of local chocolate market. TM: Dove, А.КОРКУНОВ; Mars, Snickers, Twix, Milky Way, Bounty; M&M’s, Maltesers… MICAELLO Confectionery Factory 123007 Moscow, ul.5-Magistralnaya 12 Tel/Fax: +7 (495) 941 40-20, +7 (495) 945 73 32, +7 (495) 945 72 86 [email protected] [email protected] [email protected] http://www.micaello.ru One of the leaders in the segment of sweets from fruits and nuts; since 2001 MONDELEZ RUS Central Office: 127006 Moscow, ul.Dolgorukovskaya 7, BC Sadovaya Plaza Tel: 495/960 24 80 Fax: 495/960 24 90 [email protected] [email protected] https://ru.mondelezinternational.com/ Former KRAFT FOODS RUS, since 1994 in Russia; No 3 producer in Russia, 14,4% of local chocolate market (TM: Aplen Gold, Milka, Picnic...) Unites Chocolate Plant in Pokrov, Vladimir region; Chewing Gum & Candy Plant in Veliky Novgorod; BOLSHEVIK Confectionery Factory in Sobinka, Vladimir region; Chocolate Plant in Chudovo, Novgorod region
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MONETNY DVOR UNIVERS 124460 Moscow, Zelenograd, 4-Zapadny pr.2, str.3 Tel/Fax: +7 (499) 995 25 00 [email protected] http://www.chocomoney.ru/ http://en.chocomoney.ru/ Chocolates, chocolate sculptures, medals, souvenirs NESTLE Russia Head Office: 115054 Moscow, Paveletskaya pl.2, str.1 Tel: +7 (495) 725 70 00 Fax: +7 (495) 725 70 70 [email protected] www.nestle.ru Since 1995 in Moscow; 9'500 employees No 1 producer in Russia, 21% of local chocolate market. TM: Россия - Щедрая душа!, Nestle, Nuts, Nesquik, KitKat… Confectionery & chocolate production units in Samara (ROSSIYA Confectionery Association) & Perm PEKO Bakery Plant 127282 Moscow, ul.Polyarnaya 29 Tel: +7 (499) 477 81 93, (499) 473 30 21, (499) 790 30 09 [email protected] [email protected] [email protected] [email protected] Director: Anzor Kugotov https://peko-msk.ru/ One of the top Moscow bread & confectionery plants, since 1973; 960 employees Bread, bakery, pastry, tarts, cakes POBEDA Confectionery Factory 121471 Moscow, ul.Ryabinovaya 26, k.2 Tel/Fax: +7 (495) 783 68 62 Production:140300 Moscow region, Egoryevsky r-n, pos.Klemenovo, ul.Fabrichnaya 10 [email protected] Purchases Dept: Raw materials & Packing Irina Bogoraz Tel: +7 (495) 783 68 62 [email protected] Equipment & Parts Leonid Zhidkov Tel: +7 (496) 40 55 247 #117 [email protected]
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https://www.pobedavkusa.ru/en/ Since 2002; Chocolates, candies RUSSKOE DRAZHE 105122 Moscow, ul.Amurskaya 2 Tel: +7 (495) 665 63 63 [email protected] [email protected] For suppliers: Tel: +7 (495) 663 33 96 [email protected] http://www.granddian.ru/ One of the top producers of fruits & nuts in chocolate, TM Granddian SHOKOLADNY DOM 109428 Moscow, 1-Vyazovsky pr.7, str.1 Tel: +7 (499) 171 26 80, 171 22 71, 170 96 56 Fax: +7 (499) 170 95 56 [email protected] www.chocodom.ru Big producer of chocolate gifts: figurines, medals, mini-chocolates, sculptures SLADKY ORESHEK 141554, Moscow Region, Solnechnogorsky r-n, Melechkino, str.123 Tel/Fax: +7 (495) 228 01 42, (495) 104 30 30 [email protected], [email protected] https://sweet-nuts.ru/ One of the top confectionery producers, since 2000; chocolates, nuts and dried fruits in chocolate SOKOL Confectionery Factory 115114 Moscow, ul.Kozhevnicheskaya 16, str.4 Tel: +7 (495) 959 70-92, 959 70 93, 959 70 94 Fax: +7 (495) 959 77 36 [email protected] www.socol.ru Leading producer of zefir (marshmallows) and soufflés; since 1996 TORERO Confectionery Factory 109382, Moscow, Paveletskaya nab.2, k.5 Tel/Fax: +7 (499) 553 48 98 [email protected] https://www.torero.ru/ Producer of pastry, waffle tarts, zefir; since 2000 UDARNITSA Confectionery Factory 119049 Moscow, ul.Shabolovka, 13 Tel: +7 (495) 781 22 22, 781 45 45 Fax: +7 (495) 781 27 81 [email protected]
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http://www.udarnitsa.ru/ One of the top confectionery producers of zefir, marmalade; since 1929; over 1000 employees; VERNOST KACHESTVU 121357 Moscow, ul.Vereiskaya 29, str.154 Tel/Fax: +7 (495) 775 15 15, 787 93 33, 775 50 57 [email protected] [email protected] [email protected] http://www.vk.ru/ www.chocolatevk.ru Production of premium chocolate souvenirs, gifts with corporate symbols, STM products VOLSHEBNITSA Confectionery Fabric 140032 Moscow region, Lyuberetsky r-n, pos.Malakhovka, ul.Garazhnaya 4 Tel/Fax: +7 (495) 787 97 97, 501 00 11, 501 25 77, 501 25 88, 501 00 22 [email protected] [email protected] www.volshebnitsa.ru Since 1997; chocolates, chocolate bars, truffles, fruits in chocolate ZOLOTOE PRAVILO 119361 Moscow region, Podolsky r-n, Schapovo, Oznobishevsky pr.1, str.2 Tel/Fax: +7 (495) 627 77 53, +7 (4967) 65 83 32 (ext.118) [email protected] www.zolotoe-pravilo.ru Big producer of chocolate figurines, medals, gifts; since 1996 Disclaimer
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Date of publication: April 2020