Top Growth Opportunities: Dairy & Soy Food in Russia

  • ID: 4382253
  • Report
  • Region: Russia
  • 112 pages
  • GlobalData
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FEATURED COMPANIES

  • Actimel
  • Castelli
  • Groupe Lactalis
  • Magnit
  • PepsiCo
  • Savushkin Product
  • MORE
Top Growth Opportunities: Dairy & Soy Food in Russia

Summary

Russia currently ranks sixth by per capita expenditure in US Dollar terms among the top ten Dairy & Soy Food growth opportunities. Average consumer spend in Russia is currently in the recovery phase following two years of recession and mounting pressure on household incomes, while exchange rates make comparisons between Russia and other markets problematic and prone to misinterpretation. Russia's Dairy market is forecast to experience high growth in per capita dairy and soy consumption as consumer spending and investment in business increase, making it a clear long-term growth market.

Russia’s economy is set for a return to modest growth in 2017 following two years of recession. The Dairy market is expected to benefit from this wider economic recovery, posting a CAGR of 8.7% in the five years to 2021. This follows a period of negative growth in US Dollar terms which saw the market contract 9.6% between 2011 and 2016. A series of tit-for-tat economic and trade sanctions between the EU, US, and Russia in the wake of the Ukraine crisis in 2014, combined with a rapidly depreciating ruble, have actually boosted the development of domestic business by encouraging import substitution and making exports more competitive. Russia is now the world’s biggest exporter of grains and produces its own pork and chicken.

Despite negative growth in US Dollar terms in the five years to 2016, Russia’s Dairy market is stable and growing steadily, with a value projection of US$28.6 Billion by 2021. This growth is underpinned by several factors, including a modest recovery in household incomes and more favorable business climate for producers and exporters in key industries, such as agriculture and related sectors.

Off-trade Dairy consumption accounts for almost 70% of overall market value, reflecting the trend for at-home consumption in Dairy. Overall US$ market value contracted at a CAGR of -9.59% between 2011 and 2016, reflecting currency movements and reduced consumer spending. Both off- and on-trade consumption recorded negative value growth due to the drastic depreciation of the Russian ruble’s position against the US Dollar between 2011 and 2016. Exchange rates aside, market value has grown steadily during this period, and there are opportunities for investment in both areas of the market as household incomes continue their modest recovery after two years of recession.

The report "Top Growth Opportunities: Dairy & Soy Food in Russia" provides recommended actions and detailed analysis of how to target the best growth opportunities for dairy and soy food producers and retailers. Readers can understand what categories, channels, companies, and consumers will drive the success of dairy and soy food markets in Russia.

Specifically, this report provides the following:
  • Key consumer demographic groups driving consumption within the Russian market. Improve your consumer targeting by understanding who’s driving the market, what they want, and why.
  • A study of market value and volumes over 2011-2016 for Russia, supplemented with category, brand and packaging analysis that shows the current state of the market, and how it will evolve over the 2016-2021 period.
  • White space analysis, to pinpoint attractive spaces in the market and the key actions to take.
  • Insight into the implications behind the data, and analysis of how the consumer needs will evolve in the short-to-medium term future.
  • Examples of international and regional product innovation targeting key consumer needs.
Companies mentioned in this report: Magnit, Auchan, X5 Retail Group, PepsiCo, Danone, Valio, Groupe Lactalis, Savushkin Product, Karat Zao, Hochland AG, Molvest Zao, Milkiland, Alekseevskiy MKK, President, Actimel, Castelli, Prostokvashino, Domik V Derevne, Vesely Molochnik, Bio Balance, Takanashi Shibo, Forager Project, Vitako, Imunele For Men, Agusha Zasypay-ka, Parmalat, Danone Activia, Bonfesto, Vkusnyi Standart, Volko Molko, Epica, Deluxe, Devinos, Danone Danio.

Scope
  • Despite negative growth in US Dollar terms in the five years to 2016, Russia’s Dairy market is stable and growing steadily, with a value projection of almost US$30 billion by 2021. This growth is underpinned by several factors, including a modest recovery in household incomes and more favourable business climate for producers and exporters in key industries.
  • Despite recording negative growth in US$ value terms due to the effect of currency movements, the Russian Dairy & Soy Food market registered steady growth in volume between 2011 and 2016.
  • Cheese and Milk, the two largest segments in value and volume terms in 2016, are forecast to register impressive growth in the five years to 2021, while Cream is forecast to record the fastest value growth.
  • Off-trade distribution channels together account for almost two thirds of Dairy & Soy Food consumption in Russia, although On-trade is the largest single channel by 2016 market value share.
  • The top three brands across all segments saw their collective average value share remain constant between 2011 and 2016, demonstrating that consolidation in the Russian Dairy market has slowed in response to reduced consumer spending and private label gains.
  • The value share of private label is growing faster than that of brands across all segments in the Russian Dairy market, highlighting a move among consumers towards private label products, which are often cheaper but increasingly perceived to be of equal value to brands.
Reasons to buy
  • This report brings together consumer analysis and market data to provide actionable insight into the behavior of Russia's dairy consumers.
  • This is based on unique consumer data, developed from extensive consumption surveys and consumer group tracking, which quantifies the influence of 20 consumption motivations in the Dairy sector.
  • Category, brand, and packaging dynamics are also examined.
  • This allows product and marketing strategies to be better aligned with the leading trends in the market.
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Note: Product cover images may vary from those shown
2 of 5

FEATURED COMPANIES

  • Actimel
  • Castelli
  • Groupe Lactalis
  • Magnit
  • PepsiCo
  • Savushkin Product
  • MORE
1. Introducing a top growth market for Dairy
Top 10 global growth opportunities scores
Top global issues
Assessment against global strategic issues
Strategic issues map
Predicted future issues for the global sector
Reward and risk assessment
Opportunity score - overview
Consumer spending trends - peer group comparisons
Political, Economic, Social, and Technological: Analysis
Enablers and inhibitors of growth
Rewards and opportunities for growth
Summary of the market

2. Market insight - identifying the opportunities to move into
Market growth by category
Value growth of the market
Volume growth of the market
Level of premiumization by category
Category analysis - key drivers of change

3. Retail and distribution insight - key channels and retailers driving growth
Dairy retail channel share
Key Retail Channel trends
Routes to market
Drivers of change in the sector

4. Company and brand insight - the competitive landscape defined
Category fragmentation
Company and brand strength
Private label penetration
Brand share by leading supplier
International and domestic brand analysis
Company and brand strength summary

5. Consumer insight - who, what, when, where and why
Strategic issues map
Strategic issues map - key consumer trends affecting market strategy
Key consumer driver implications
Key consumers trends
Consumer groups
Key Health & Wellness trends
How Health & Wellness benefits will contribute to growth
Penetration of Health and Wellness claims by category
Consumer trends summary

6. Product and packaging insights
Key Product Insights
Trends and strategic issues - other notable product trends
Key product innovation case studies
Key Packaging Insights
Trends and strategic issues
Product launch key takeouts

7. White spaces and innovation opportunities - space to move into
Growth segments to target
Consumer spaces to target
Segment opportunities
Price dynamics
Product launch key takeouts
Key recommendations

8. Appendix

List of Tables
Visualization of 10 countries growth opportunities
Visualization of 10 countries growth opportunities (continued)
Reward and risk assessment
Market value and split, 2011-2021
Value growth by category, 2011-2021
Winners and losers by category, value, 2016-2021
Volume growth by category, 2011-2021
Winners and losers by category, volume, 2016-2021
Key consumption volume shares by consumer group, 2016
Key consumption motivators by category, 2016
Key consumption motivators by category, 2016 (continued)
Top categories by volume and CAGR, 2011-2016
Average price change by brand, 2016

List of Figures
Map of top opportunity markets
Map of top global issues
Global issue web
Strategic issues map
Average consumer spend, peer group comparisons, 2011-2021
Market value and split, 2011-2021
Value growth by category, 2011-2016 and 2016-2021
Value market growth by category, 2011-2021
Volume market growth by category, 2011-2021
Value and volume growth by category, 2011-2021
Fragmentation by category, 2011-2016
Private label penetration and CAGR, 2011-2016
Cumulative value share by brand, 2016
Penetration of Health and Wellness claims by category, 2016
Packaging materials volume share, 2016 & 2021
Packaging closure materials volume share, 2016 & 2021
Projected CAGR for top five categories by value, 2016-2021
Price change by category,
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  • Magnit
  • Auchan
  • X5 Retail Group
  • PepsiCo
  • Danone
  • Valio
  • Groupe Lactalis
  • Savushkin Product
  • Karat Zao
  • Hochland AG
  • Molvest Zao
  • Milkiland
  • Alekseevskiy MKK
  • President
  • Actimel
  • Castelli
  • Prostokvashino
  • Domik V Derevn
Note: Product cover images may vary from those shown
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