Confectionery (Russian market)

Export of confectionery products from Russia

Main article: Export of confectionery products from Russia

Chronicle

2022

8.1% increase in sales of chocolate and cocoa products to 1.16 million tons

The volume of the Russian market for chocolate and cocoa products in 2022 reached 1.16 million tons, which is 8.1% more compared to the previous year, and compared to 2018, sales of these products increased by 13.7%. Such data are provided in a study that the analytical agency BusinesStat published in December 2023.

According to experts, the growth in sales of chocolate and cocoa products in 2022 was facilitated by the perception of their consumers as a useful treat due to the high percentage of cocoa beans. In addition, chocolate remains one of the most pleasant and affordable ways to improve mood and reduce stress levels, experts say.

In the period from 2018-2020. the Russian market for chocolate and cocoa products showed a decline only in 2020 (by 6.2%), when the COVID-19 coronavirus pandemic led to low population mobility and the closure of catering establishments. As a result, the demand for sweets then decreased.

In the remaining years, the period 2018-2022. sales of chocolate and cocoa products showed steady positive dynamics. The growth of the market was stimulated by the constant addition of the assortment by manufacturers with new tastes and packaging options, increased marketing activity by market participants, as well as an acceleration of the rhythm of life, in which people increasingly purchase sweets as a snack on the go and at lunchtime, the study notes. It takes into account sales of the following products:

• cocoa powder (with sugar);
• chocolate or chocolate glazed candy;
• chocolate (except white chocolate);
• chocolate glaze;
• chocolate paste;
• chocolate eggs with filling, solid and hollow chocolate figures and others;
• cocoa confectionery.^[1]

Decrease in sales of marmalade by 0.4% to 25.2 thousand tons

In 2022, 25.2 thousand tons of chewing marmalade were produced in Russia. This is 0.4% less than the volume of production a year ago. BusinesStat analysts spoke about the market situation in their study, which was released in October 2023.

According to the report, the production of chewing marmalade in the Russian Federation at the end of 2022 compared to 2018 increased by 15.4%. In 2020-2021. amid the weakening of the ruble, the import of chewing marmalade fell sharply, and domestic producers increased production volumes to occupy the vacant niche. As a result, in 2021, the release of chewing marmalade reached its peak value in five years - 25.3 thousand tons.

The sanctions crisis, which came after the start of the Russian military special operation in Ukraine, had a limited impact on the chewing marmalade market, BusinessStat said. Large manufacturers quickly adapted to the changed conditions, worked out new supply chains and established supplies of raw materials. Moreover, the departure from the Haribo market and the limited availability of marmalade of other foreign brands opened up new prospects for domestic companies. They expanded the assortment, supplemented it with new tastes, forms, focusing on the naturalness of the components and compliance with the current trends in healthy eating, which was a distinctive feature of European products.

So, in 2022, Union Group began production of chewing marmalade with natural juice. The Perm Confectionery Factory also headed for import substitution. In December 2022, the company applied for the trademark "Valera Bear," under which, according to media reports, it is planned to produce chewing marmalade in the form of cubs, reminiscent of Haribo.^[2]

Reduction in sales of sugar products by 4.4% to 662 thousand tons

In 2022, 662 thousand tons of sugar confectionery products were sold in Russia, which is 4.4% less than a year earlier. At the same time, in 2021, the market volume grew by 8.5%, analysts at BusinesStat, whose data were published in June 2023, calculated.

According to experts, the deterioration in the well-being of Russians prompted them to follow a rational consumption model: reduce spending on goods that are not part of the mandatory consumer basket, or buy better and more nutritious products in smaller quantities. It is worth noting that in 2022 the consumption of only sugar products decreased, sales of chocolate and flour confectionery products grew. Sweets are often used as a means to boost mood, relieve stress and anxiety.

662 thousand tons of sugar confectionery products were sold in Russia

As noted in BusinesStat, the decline in sales of sugar products in 2022 was also influenced by a narrowing of the range of sweets due to restrictions on the activities of the largest foreign producers in Russia. For example, Mondelez, Nestle, Ferrero suspended advertising and investments in Russian business and stopped importing their sweets into the country.

Imported products occupy about 11% of the Russian market for sugar products. In 2022, imports amounted to 79.6 thousand tons, which turned out to be at the level of 2021. The supply of sugar confectionery products from China and Turkey has grown significantly. Also among the major supplying countries were Kazakhstan, Germany and Belarus. Among all types of imported saccharine products, marmalade, fruit pastille, is the most popular.

The researchers add that in 2022, the demand in the confectionery market gradually shifted towards other sweets: dietary products with a natural composition, chocolate products, flour pastries with an original recipe.^[3]

Sales growth of 1.9% to 3.65 million tonnes

In 2022, 3.65 million tons of confectionery products were sold in Russia, which is 1.9% more than a year earlier. In the period from 2018 to 2022. The market showed stable growth, except for 2020, when sales decreased by 4.5%. This is evidenced by the data of the analytical agency BusinesStat. The study was published in May 2023.

According to the BusinesStat report, in 2022 the Russian confectionery market was close to saturation, its dynamics depends on the level of income of the population, changes in consumer behavior, and the actions of encouraging factors for sales growth. Stable demand was supported by the development of retail chains with a rich range of sweets on offer at affordable prices, the application of various incentive promotions and marketing activities, the expansion of chains of small coffee shops and bakeries, mobile points of sale, constant search and supply by manufacturers of new tastes and types of sweets.

In conditions of instability in 2022, Russians tried to "treat" themselves and loved ones with various sweet products. The sale of chocolate and other cocoa confectionery products has significantly increased: despite the high cost, chocolate products remain popular, perceived as a more useful treat. In 2022, among all types of flour confectionery, sales of sweet, dry cookies and gingerbread products increased: these categories belong to the products of the low price segment and often serve as an alternative to expensive sweets. At the same time, the consumption of saccharine confectionery products, as well as expensive flour products (cakes and cakes), has decreased, the researchers note.

For 2018-2022 imports of confectionery products to Russia increased by 22.1% - from $965.4 to $1.18 billion. A decrease compared to the previous year was noted only in 2020 - by 6.7% - as a result of a decrease in both the natural volume of supplies and the average import price.^[4]

Notes