Chips (Russian market)

• Food industry in Russia

2023

The Russian chip market grew by 4.4% to 134.1 thousand tons

In 2023, sales of potato chips in Russia reached 134.1 thousand tons, which is 4.4% more compared to 2022. The industry began to recover from a downturn triggered by a worsening geopolitical environment. Market data is provided in the BusinesStat review published on March 26, 2024.

According to estimates, the volume of chip sales on the Russian market in 2019 amounted to about 130.8 thousand tons. In 2020 and 2021, an increase of 3.5% and 6.8% followed, respectively, to 135.3 thousand and 144.5 thousand tons. Several factors contributed to this: the acceleration of the rhythm of life, the emergence of new tastes, packages and product formats, as well as the development of online trading and delivery services. In addition, due to stagnant incomes, many residents of the country began to refuse to visit cafes, restaurants and bars in favor of eating snacks, including chips, and drinks at home or on the street.

At the end of 2022, the volume of chip sales in the Russian Federation decreased by 11.1% - to 128.5 thousand tons. This is due to rising prices and a reduction in the assortment due to the withdrawal from the Russian market of a number of foreign manufacturers that have produced chips of popular brands. In particular, Kellogg's, the manufacturer of Pringles, stopped supplying products. Against this background, the volume of imports of chips to Russia in monetary terms in 2022 collapsed by 50.9%, being at the level of $53.8 million.

But already in 2023, market participants adapted to new conditions: consumer expectations of Russians stabilized, and domestic manufacturers expanded their presence, occupying the niches of foreign companies. It is noted that the main share of chip buyers in Russia is young people in the group from 12 to 25 years old, but the age of the average consumer is gradually increasing: the generation of millennials that grew up on chips continues to acquire them at an older age.^[1]

Increase in snack sales by 1.4% to 715.7 thousand tons

In 2023, sales of snacks in Russia reached about 715.7 thousand tons. The growth in relation to 2022, when the volume of sales of these products was estimated at 705.6 thousand tons, amounted to 1.4%. Market analysis is provided in the BusinesStat report published in late March 2024.

The study looks at unsweetened and sweet snacks. These are, in particular, chips and crackers, salted snacks (meat, fish and cheese), nuts, dried fruits, seeds, popcorn, salted cookies and dries, granola and cornflakes, breakfast cereals, as well as chocolate bars. It is noted that, despite the formed geopolitical situation, many foreign snack producers continue to work in the Russian Federation. For example, Mars and Mondelez officially announced the suspension of investments, exports and imports of products to and from Russia, but Russian divisions of companies conduct independent activities.

According to estimates, in 2019, sales of snacks on the Russian market amounted to about 672.9 thousand tons. This was followed by an increase of 0.7%, and in 2020 the volume of sales rose to 677.8 thousand tons. In 2021, sales increased by another 6.4% - to 721 thousand tons. However, in 2022, against the background of sanctions, a decline of about 2.1% was recorded.

Analysts note that consumer attachment to certain brands is strong in the snack market. In addition, a significant part of the production sites of snacks in the country were localized production of foreign brands. Due to the worsening geopolitical situation, some foreign companies doing business in Russia announced either a complete departure from the country or the termination of investments, promotions and deliveries of products from abroad. In particular, the popular brand of Pringles chips has left the Russian market.^[2]

2022

Reduction in potato chip production by 3% to 364.9 thousand tons

In 2022, 364,900 tons of potato chips were produced in Russia, which is 3% less than a year earlier. This is evidenced by the data that the Invest-Project expert consulting center published in December 2023.

From the materials of the center it follows that 2022 the production of potato chips has steadily increased. So, in 2019 it grew by 22%, in 2020 - by 17%, in 2021 - by 8%. The leader in the production of potatoes cooked or canned (including chips) is the Central Federal District with a share of 60% of the all-Russian volume in 2022. This is followed by the Southern Federal District and the Siberian Federal District with shares of 22.0% and 8.8%, respectively.

According to analysts of Invest-Project, in 2022, Russian imports of potato chips amounted to 9.4 thousand tons per 49.3 million dollars. USA The main suppliers of potato chips to the Russian market during 2018-2022. were Belarus Poland.

The study also says that the estimated consumption of potato chips in Russia in 2022 amounted to 150.8 thousand tons. According to Rosstat, in 2022-2023. prices reached a maximum in May 2022 (310,256 rubles/ton).

According to the study, chips are present in the basket of more than a third of Russians: according to a survey by Ipsos, 36.8% of Russians surveyed were among the consumers of chips in the third quarter of 2022.

The most recognizable brand is Lay's. According to a survey conducted by analysts in August - October 2022, 92.5% of chip consumers over the age of 16 living in large cities (with a population of more than 100 thousand people) knew this brand. Pringles are among the five most recognizable brands (75.4% of consumers know them), among other popular brands are Russian Potatoes (70.6%), Cheetos (68.9%) and Lay's Maxx (65^[3]?

Russia exported a record volume of potato chips - 44 thousand tons

The volume of potato chip exports from Russia in 2022 reached a record 44 thousand tons, which allowed the Russian Federation to enter the top ten largest suppliers of these products in the world. Such data are given in a study published in August 2023 by the Federal Center for the Development of Export of Agricultural Products (FGBU Agroexport) under the Ministry of Agriculture.

The key export areas for Russia are countries, CIS first of all Kazakhstan-,,, and Belarus. Uzbekistan Kyrgyzstan According Tajikistan to analysts, Georgia East Asia (primarily,,) can also be considered as promising areas for Russian supplies, as well China Hong Kong Mongolia. Turkey

Russia exported record volume of potato chips

Agroexport experts note that for the period from 2018 to 2022, Russian exports of these products increased annually by an average of 17.3% by weight and 30.3% by value, and in general during this period it almost doubled, increasing to 44 thousand tons from 23.3 thousand.

In the structure of global exports of potato chips in physical terms last year, the leaders were the Netherlands (supplies amounted to 290.3 thousand tons, 26.3% in total exports) and Belgium (203.8 thousand tons, 18.5%). The top 5 countries also included the United States (96.9 thousand tons, share in total exports - 8.8%), Germany (68.8 thousand tons, 6.2%) and Poland (54.5 thousand tons, 4.9%). In sixth place is Spain (44.2 thousand tons, 4%).

The top 10 exporters accounted for more than 82% shipments of potato chips globally 2022 year. Russia ranked seventh in the ranking of potato chip exporting countries in physical terms. It is expected that in 2023, by maintaining positive growth trends in global demand for potato chips, as well as ensuring the necessary growth in the production of these products in Russia, exports may amount to 80-90 thousand tons.^[4]

Notes