Canned products market in Russia

2023

Growth of canned food production by 26.9% to 2.43 million tons

In 2019-2023, the production of canned food in Russia increased by 26.9%, reaching 2.43 million tons. Demand for these products is growing steadily, as stated in the BusinesStat review, published on August 19, 2024.

The study takes into account dairy, meat, vegetable and fruit and berry canned food, as well as canned food and preserves from fish and seafood. Among the significant players in the market under consideration in the Russian Federation are named JSC Wimm-Bill-Dann, JSC H & En, JSC Agrocomplex Firm named after N.I.Tkevva, CJSC Starodvorsky Sausages, OJSC Velikoluksky Meat Processing Plant, OJSC Velikonovgorodsky Meat Yard, TD Baltic Coast, Myasoprocessing complex "Yashevsky" etc.

In 2019, 1.91 million tons of canned food of all types were made in Russia. In 2020, an 8 percent increase was noted with a result of 2.07 million tons. In 2021, the increase amounted to 2.1% - up to 2.11 million tons. The most significant growth occurred in 2022 as a result of increased demand from the public sector, as well as an increase in retail sales: production rose by 11.2%, reaching 2.35 million tons. In 2023, an increase of another 3.5% was recorded (up to 2.43 million tons).

The report says that the bulk of the products produced in the Russian Federation are intended for the domestic market. Among the positive factors are the state support for the agro-industrial complex and the prerequisites for import substitution against the background of the current geopolitical situation. At the same time, Russian canned food producers face a number of significant problems, among which BusinesStat analysts distinguish:

· Insufficient raw material base;

· Additional difficulties arising from the imposition of sanctions;

· Difficulties for new companies with entering the market;

· Lack of necessary funding;

· Product falsification.^[1]

Reduced production of canned fish by 11% to 552.2 million conditional cans

The production of canned fish in Russia in 2023 decreased by 11% compared to 2022 and amounted to 552.2 million conventional cans (mub). This is evidenced by the data of Rosstat, published at the end of January 2024.

According to Interfax, the production of canned fish has decreased, despite record fishing (5.3 million tons in 2023). In December 2023, the production of such canned food in the Russian Federation also decreased - by 10.8% compared to the last month of 2022.

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According to the data, 27.8 Rosstat million conditional cans were produced by fish preserves, which is 2.7% and 7.2% more than in December 2022 and November 2023, respectively. In 2023, fish preserves were produced by 7% more than in 2022.

The decrease in the production of canned fish is associated with a decrease in consumption against the background of rising prices for raw materials, the chairman of the Fish Union Alexander Panin is sure. Managing partner of Agro & Food Communications Ilya Bereznyuk, in a conversation with Vedomosti, noted that in general, a decrease in the production of canned fish is not critical for the market, since the volume of production is still enough to meet domestic demand, and the reduction in supply for a number of types of canned food was compensated by growth in others.

Alexander Efremov, manager of the Dobroflot Group of Companies (calls himself the largest producer of canned fish in Russia), associates the decrease in the production of canned food with the identification by the Rosselkhoznadzor and Rospotrebnadzor of cases of substitution of raw materials. Unscrupulous producers are laying cheaper herring in banks instead of expensive saira, he explained to the publication. The Fishery Fleet Fisheries Association estimates that the difference in price between these types of fish can be 4-5 times.^[2]

2022: 24% canned meat market growth to 285 kt

The volume of the Russian canned meat market in 2022 reached 285 thousand tons, which is 24% higher than a year ago. Sales of these products returned to rapid growth after falling by 8.9% in 2021, according to data from BusinesStat analysts published in October 2023.

According to the researchers, the growth of the canned meat market in the Russian Federation in 2022 was the maximum in five years. It was caused by both an increase in purchases from states the outside for the needs of the army and an increase in retail sales. In the fall of 2022, a sharp, albeit short-term, surge in demand for canned meat was noted after the announcement of partial mobilization. In addition, in 2022, the demand for canned meat from volunteer organizations collecting humanitarian aid grew.

According to experts, there were no direct sanctions on canned meat, but they indirectly affected production. As a result of the violation of logistics ties with countries Europe , the supply of white tin and finished containers for packaging canned meat has decreased. Metal containers for canned food rose in price in 2022 by 60-80%, which resulted in an increase in prices for canned meat producers by 41% in 2022.

According to BusinesStat, which are cited in a study published in early October 2023, despite rising prices, demand for canned meat from the state and retail customers will remain high in the near future.

In 2019-2022. the turnover of imports of canned meat to Russia decreased. In 2022, revenue decreased by 1.9% to $49.8 million, and the volume of imports of products in physical terms decreased by 1.5%, to 13.3 thousand tons.

Depending on the mass share of meat ingredients in the recipe, analysts divide canned food into:

• meat;
• meat-containing;
• meat-and-vegetable;
• vegetable and meat.^[3]

Notes