Delivery of finished food (Russian market)

2023: 7.6% reduction in sales of ready-made food and cooking kits with delivery to RUB 14.5 billion

The volume of the Russian market for ready-made rations and sets for cooking in 2023 amounted to 14.5 billion rubles, which is 7.6% less than a year earlier. This is evidenced by the data of the analytical company Infoline, published in early March 2024.

According to experts, the fall in sales of ready-made rations and sets for cooking has accelerated: in 2022, negative dynamics were measured at -4.3%. And in 2019-2021. the market grew 1.5 times. According to Infoline's calculations, in 2023, the share of companies outside the top five in sales decreased from 27.3% to 16.5%, indicating a trend of market consolidation.

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The decrease in demand for ready-made rations and kits for cooking in the Russian Federation in 2023 occurred due to the transition of the population to a savings model in behavior and a rational attitude towards food costs, researchers say. In addition, according to them, the consequences of the departure of the population due to partial mobilization in September 2022 affected. At the same time, the competition between services with cooking of large grocery chains and catering has increased, the study notes, excerpts from which are provided by Shopper's.

The founder of Elementaree, Olga Zinovieva, also points to such a barrier to the market as blocking some social networks in Russia through which the main traffic went. The founder of Shefmarket, Sergei Ashin, considers the main problem for business in the field of ready-made food - the retention of buyers by services.

The founder of Shefmarket, Sergei Ashin, in a conversation with Kommersant, suggested an increase in turnover on the market by 20-25% in 2024. According to him, cooking kits have their own consumers, despite competition with ready-made food delivery services.^[1]

2022

The sushi and roll delivery market in Russia has tripled in 4 years - to 148.9 billion rubles

The volume of the Russian market for sushi and roll delivery services in 2022 increased by 30.7% compared to the previous year and amounted to 148.9 billion rubles. Compared to 2018, there was more than a threefold rise. Analysts of the GuideMarket agency reported this in August 2023.

According to them, the rise in sushi and roll prices, caused by general inflation and higher costs, as well as the organization of the delivery process, contributed to the increase in market volume.

However, the COVID-19 coronavirus pandemic in 2020 had the most significant impact on market growth. During the first lockdowns, when restaurants were forced to close, and people were allowed to go out only within their homes, the demand for food delivery increased significantly.

Also, the growth of the sushi and roll delivery market is due to the development of demand in the regions. Consumer habits have already formed, so even the unstable economic situation in 2022 led only to a decrease in the growth rate of the market, but not to its reduction.

Experts have identified several trends in the development of the sushi and roll delivery market in Russia. Among them:

• menu revision due to sanctions and logistics;
• Cost optimization
• increasing the cost of ingredients and finished products;
• closing of non-profitable points;
• development of technologies and automation;
• increased coverage across the territory;
• reduction of the average check;
• weakening loyalty to familiar brands;
• a decrease in the share of sushi and rolls in the total volume of food delivery;
• replacement of ready-made cooking from retail chains with food delivery from restaurants;
• the transition of consumers to reasonable consumption against the background of uncertainty;
• falling attractiveness of the Russian market for Western investors.

The sushi and roll delivery market continues to show steady growth, but faces a number of challenges and changes in consumer behavior, the researchers added in August 2023.^[2]

Finished food market growth by 27.1% to 216 thousand tons

The volume of the Russian market for ready-made food in 2022 reached 216 thousand tons, which is 27.1% more than a year earlier. Such data Rosselkhozbank published at the end of March 2023. Read more here.

Food delivery services market growth by 18.8% to 601.3 billion rubles

The volume of the Russian market for food delivery services in 2022 reached 601.3 billion rubles, which is 18.8% more than a year earlier, and 4 times higher than in 2018. Such data were published by the market research agency GuideMarket in July 2023.

According to experts, in 2022 the market in question grew primarily due to the development of delivery in the regions. Consumer habits have formed, so even taking into account the unstable economic situation, there was only a decrease in the growth rate of the market.

As noted in the study, the COVID-19 coronavirus pandemic has significantly accelerated market growth. It was after the first lockdowns, when catering had to close, and it was possible to go outside in many cities only within the adjoining territory, that a high demand for food delivery began to form, the researchers note.

According to experts at Infoline for 2022 Moscow Moscow area , and accounts for more than 50% of all online food orders in the country. The market of the Moscow region is more mature, in 2022 about 6.7% of residents used food delivery services. In general, the Russia e-grocery penetration rate is estimated at 2.9%.

20% of the market for the delivery of products in the Moscow region is occupied by Vkusville, 10% each are controlled by Sberbank Market, Ozon (including Ozon Fresh) and X5 Group. Another 9% of the market is occupied by Samokat, and 41% is accounted for by other services.

Infoline-Analytics CEO Mikhail Burmistrov notes that in order to stimulate demand, most market participants intensified marketing activity in the summer, expanded their own brand portfolio and the range of ready-made food. However, the dynamics of the Moscow region market is significantly affected by the outflow of part of the solvent population, in this regard, the services thought about expanding regional expansion.^[3]

Market reduction by 4.3% to 15.7 billion rubles

The volume of the Russian market for the delivery of ready-made rations and sets for cooking in 2022 reached 15.7 billion rubles, which is 4.3% less than a year earlier. This is reported by analysts of the consulting agency Infoline. The market fell for the first time in its entire watch, they said.

Experts say that in 2022, consumers began to increasingly refuse to subscribe for the delivery of food sets and ready-made diets due to a decrease in real income and increased uncertainty against this background. In addition, the sales of players in this segment were seriously affected by the partial mobilization announced at the end of September 2022 and the subsequent emigration of part of the population - representatives of the middle class, the most wealthy Russians.

Consumers have become more likely to opt out of grocery kit delivery subscriptions due to lower real incomes

In addition to the outflow of customers, the companies also faced an increase in the cost of goods. For example, purchase prices for packaging and labels in 2022 increased 3 times, and food prices on average rose by more than 15%, says Shefmarket CEO Sergei Ashin. But against the background of increased price competition in retail and catering, companies are forced to restrain the growth in the cost of finished products.

The largest market share in the revenue structure in the market for delivery of ready-made rations and sets for cooking by the end of 2022 was occupied by the Performance Group - it accounted for 33.4%. Grow Food (Grow Food Company) has 20.9%, Shefmarket accounts for 8.6%, Elementaree - 4.3%, Justfood - 3%. The remaining 29.7% is divided between other market participants.

According to Infoline forecasts, in 2023 the market should win back the fall of the previous year: turnover can grow by 15% to 18 billion rubles due to indexation of the cost of products and the arrival of new players, including from retail (for example, Vkusville). In addition, companies will restore marketing activity using new promotion channels, says Mikhail Burmistrov, CEO of Infoline Analytics.^[4]

2021: The Russian market for the delivery of ready-made dishes and products in Russia was estimated at 613 billion rubles

The volume of the Russian market for the delivery of ready-made dishes and products in Russia in 2021 amounted to 613 billion rubles, BusinessStat analysts calculated. They did not specify the dynamics in comparison with 2020 and only noted that in 2020 the expenses of Russians in this area soared by 225% amid the COVID-19 coronavirus pandemic, due to which people began to work and study more often from home.

The Russian market for the delivery of ready-made dishes and products was estimated at 613 billion rubles

The top 20 largest market players include companies of various profiles, analysts say. At the same time, according to BusinesStat estimates, none of them occupies more than 14% of the market share. The entire top 20 players account for 72.1% of the delivery market, and another 27.9% - for the rest of the companies.

According to Data Insight, the Russian food delivery market reached 329 billion rubles in 2021, an increase of 159% compared to 2020. The number of orders increased by 244% - to 237 million. The study showed that 76% of surveyed catering and grocery retail enterprises in Russia provide the opportunity to order food and food at home. On average, companies that are actively developing delivery already account for 50% or more of orders. For large restaurant chains, the ratio reaches 80%.^[5]

2020

Performance Group leads the Russian market for grocery kit delivery services, ahead of Grow Food - Infoline

In 2020, the leader changed in the Russian market of delivery services for food sets and ready-made rations. It was the Performance Group, ahead of Grow Food. This is evidenced by Infoline data.

According to experts, the turnover of the Performance Group and Grow Food at the end of 2020 amounted to 3.2 billion and 2.2 billion rubles, respectively. Shefmarket closed the top 3 online stores selling ready-made food kits with an indicator of 1.16 billion rubles. Next are Elementaree (900 million rubles) and Justfood (450 million rubles).

Despite the pandemic [coronavirus COVID-19 - approx. TAdviser] and the restrictions associated with it, we managed to more than double the turnover and were the first in the segment to overcome the mark of 3 billion rubles, - said the founder of Performance Group Arthur Zeleny, commenting on the company's leadership in the market.

According to him, in 2020 the company will significantly expand its geography of presence, continuing its expansion into the regions. It is also planned to go to traditional retail. Performance Group expects by the end of 2021 on revenue close to 6 billion rubles.

In general, the turnover of the market for the delivery of ready-made rations and food sets in 2020 increased by 53% and exceeded 11 billion rubles against 7.2 billion rubles in 2019. One of the catalysts for this rise was the launch by ready-made food services of special menu lines for retail chains.

At the same time, according to analysts, large retailers and representatives of the catering market, such as Vkusville and Prime, began to offer customers diets - food kits specially selected by nutritionists for one or several days. They are delivered to home, from them you can make the right menu depending on the goal: get rid of excess weight, gain muscle mass, and so on.^[6]

Market shares of leading players in the Russian market for ready-made food delivery

Market Shares of Leading Players in the Ready-Made Food Delivery Market, 2019 - 2020

Delivery to the USSR

Notes