Food industry in Russia

Main article: Industrial production in Russia

Market segments

• Spices (Russian market)
• Alcoholic beverages (Russian market)
• Beer (Russian market)
• Sauces (Russian market)
• Pasta (Russian market)
• Chips (Russian market)
• Sunflower oil (Russian market)
• Cereals (Russian market)
• Vegetable oil (Russian market)
• Frozen Semi-Finished Products (Russian Market)

2024

Potato processing soared 25% in a year to reach 1.5m tonnes

The volume of potato processing in Russia in the agricultural season 2023/24 increased by 25% and reached 1.5 million tons. Such data in February 2025 was presented by the Institute for Agricultural Market Studies (IKAR).

The ICAR presentation notes a significant increase in the production of all major categories of processed potatoes. The largest volume of raw materials - 588 thousand tons - was directed to the production of cooked and canned potatoes, which exceeds the 2022/23 season figure by 70 thousand tons.

Potato processing in Russia soared by 25% over the year

The main directions of potato processing in Russia in the 2023/24 season:

• Cooked and canned potatoes - 588 thousand tons.
• Frozen potatoes (including fries) - 421 thousand tons.
• Potato flour, flakes and granules - 390 thousand tons.
• Potato chips - 93 thousand tons.
• Other types of processing - 8 thousand tons.

The production of frozen potatoes, including French fries, increased by 13% to 421 thousand tons. The production of potato chips increased by 15% and reached 93 thousand tons. The production of potato flour, flakes and granules increased to 390 thousand tons against 275 thousand tons in the previous season.

According to ICAR forecasts, in the 2024/25 season, the volume of potato processing can reach 1.521 million tons. It is expected to increase the production of cooked and canned potatoes to 641 thousand tons, frozen potatoes - up to 430 thousand tons, chips - up to 94 thousand tons.

The increase in processing is taking place against the background of a decrease in the total harvest of potatoes in the organized sector. In 2024, the harvest amounted to 7.37 million tons, which is 1.23 million tons less than in 2023.

The increase in processing volumes indicates the development of the food industry in Russia and the expansion of the production of products with added value. This trend contributes to increasing the efficiency of the use of agricultural raw materials and the development of domestic production of finished products.^[1]

Food Industry Market Growth of 3.5%

The volume of food production in Russia in 2024 increased by 3.5%. This is evidenced by the data that Rosstat published in February 2025.

From the materials of the department it follows that in 2024 in the Russian Federation there was an increase in the volume of production of wheat and wheat-rye flour, cereals, sunflower oil and feed. Thus, the production of wheat and wheat-rye flour increased by 1.5%, to 9.2 million tons, cereals - by 0.8%, to 1.9 million tons. The production of confectionery products rose by 3.9%, to 4.3 million tons.

The food industry of Russia for the year increased by 3.5%

According to the results, cheese production in Russia increased by 5.1% year-on-year, reaching 841 thousand tons. Butter output decreased by 1.4%, to 331 thousand tons.

Canned food for baby food on a fruit and fruit and vegetable basis, as well as juices in 2024 were produced in the amount of 4.4 billion conventional cans (3.8% lower), in December - 0.4 billion (plus 0.9% year-on-year).

The volume of production of processed and canned fish, crustaceans and mollusks for 12 months amounted to 4.3 million tons, 4.5% less than a year by year; in December 2024 - increased by 4.6%, to 0.3 million tons.

The decrease was recorded in production:

• non-dry bakery products (by 2.7%, up to 4.9 million tons);
• white beet sugar (by 0.2%, up to 6.6 million tons).

According to Rosstat, the volume of drinks in Russia at the end of 2024 increased by 9.4%. The department does not give absolute figures for the production of these products.

According to INFOLine analysts, Russia fully provides itself with food. By 2024, the country is equipped with vegetable oil by 226.9%, fish - by 163.7%, sugar - by 108.5%, meat - by 100.5%, dairy products - by 85.9%. Further growth of the industry is directly related to the development of export potential.^[2]

The market for ready-made food for the year grew by 28.8%

Sales of ready-made dishes in Russia increased by 28.8% in 2024. This was announced in early February 2025 by Maria Garanina, head of sales at Nielsen educational projects.

According to Adindex, the largest growth was demonstrated by pasta - 62.1%, vegetable dishes with meat or fish - 50.9%, soups and broths - 43.3%. The minimum growth was shown by perishable salads - 19.3%, complex dishes - 21.6% and dough-based products - 24.9%.

The Russian market for ready-made food for the year grew by 28.8%

In the structure of sales of ready-made dishes, bakery products occupied 28.9%, perishable salads - 25%, complex dishes - 19.5%. The share of rice-based foods was 7.7%, based on dough - 6.2%, based on potatoes - 3.8%.

According to the research company Nielsen, the regional distribution of sales shows the dominance of the Central Federal District with a share of 43.9%. The most dynamic growth was demonstrated by the Southern District - 38.5%, the Urals - 36.6% and Siberia - 31.1%.

Among sales channels, supermarkets are leading, having increased their share by 1.9 percentage points. Hypermarkets reduced their presence by 2.8 percentage points to 21.8%. The share of minimarkets increased from 0.9% to 12.9%, hard discounters - from 1.2% to 12.4%.

The largest dynamics of sales growth was shown by hard discounters - 78.3%. Minimarkets increased sales by 34.5%, supermarkets - by 32.8%, hypermarkets - by 14.2%.

In the general structure of the perishable products market, the share of ready-made dishes reached 7.5% in 2024 against 6.8% in the previous 2023.

The growth of this segment demonstrates a change in consumer preferences in favor of ready-to-eat foods. The expansion of the range and the development of new trading formats contribute to increasing the availability of ready-made food for consumers.^[3]

Sales of ready-made food in Russia for the year increased by 35.6% and reached ₽1,27 trillion

In mid-January 2025, it became known that the volume of sales of finished cooking and baking in Russian retail in 2024 reached ₽1,265 trillion, an increase of 35.6% compared to ₽933 billion in 2023.

According to RBC, the share of finished products in the turnover of food retail increased to 4.8% compared to 4.1% in 2023. The growth in indicators is due to the gradual refusal of Russians from cooking at home and an increase in demand for ready-made dishes in all sales channels.

Sales of ready-made food in Russia for the year increased to ₽1,3 trillion

The largest retail chains showed significant sales growth in this segment. The Pyaterochka network more than doubled the figure - from ₽57 billion to ₽119 billion. In 2023, the retailer's culinary sales growth rate was 59%.

Crossroads accelerated its growth rate in the ready-to-eat category from 20% to 41% in 2024, reaching a turnover of ₽37 billion. VkusVill also showed an increase in sales growth from 36% to 43%, bringing revenue in this category to ₽56,6 billion.

RBC analysts note that ready-made cooking in retail chains is a serious competition for catering establishments and delivery services from restaurants due to more attractive prices, which is especially important in the face of cost savings by consumers.

Retail operators are actively adapting to changes in consumer preferences, promptly revising and updating the range of finished products in accordance with current customer requests. This trend is becoming a determining factor in the development of food retail.

The study shows that the ready-to-eat and cooking category is emerging as one of the key growth drivers for retail chains, demonstrating sustainable development dynamics over recent years.^[4]

In the Ryazan region for ₽1,8 billion built a plant for the production of medical nutrition

The company "Leovit Nutrio" invested ₽1,8 billion in the creation of the production of specialized medical and preventive nutrition in the Ryazan region. By the end of December 2024, the plant was built, its launch is scheduled for early 2025, and reaching full production capacity by the middle of 2026. Read more here.

Amaranth oil plant opened near Voronezh for ₽1,5 billion rubles

The enterprise for the deep processing of amaranth began work in the special economic zone "Center" of the Voronezh region in mid-November 2024. Investments in the construction of the first stage amounted to ₽1,5 billion, which made it possible to create 149 jobs. The production capacity of the plant reaches 6 thousand tons of processing of raw materials per year. Read more here.

2023

Imports of food flavors to Russia for the year decreased by 19%, to 19.8 thousand tons

In 2023, 19.8 thousand tons of food flavors were imported to Russia. For comparison, a year earlier, the volume of import of these products was estimated at 24.4 thousand tons. Thus, there was a fall of almost 19%, as stated in the BusinesStat review, published at the end of September 2024.

The main volume of imports of food flavors to Russia falls on the countries of the European Union - more than 80%. Against the background of the formed geopolitical situation, the supply of products from Germany, Ireland and France decreased. At the same time, other EU member states, on the contrary, increased imports, thanks to which the share of the European Union in the total volume of imports to the Russian Federation in 2023 exceeded 83%.

According to estimates, 21.1 thousand tons of food flavors were imported to Russia in 2019. In 2020, the indicator rose by 10.1% - to 23.3 thousand tons, and in 2021 - by another 6.6% with a result of 24.8 thousand tons. But a 1.9% decline followed in 2022. This is due to the fact that some of the companies supplying food flavors left the Russian market. In general, in 2022-2023, the volume of imports decreased by about 20%. Products previously exported from the country and re-imported back are not taken into account in the total volume.

The study says that in Russia there is an increase in demand for food flavors from food industry companies. However, the industry faced certain difficulties due to falling imports. Domestic manufacturers are increasing production, developing new recipes and tastes, but these products also remain dependent on foreign raw materials and components. Among the significant players in the industry are Soyuzsnab JSC, KPF Milorada LLC, Simraiz Rogovo LLC, VM Ingredients LLC and Professional Biotechnology LLC. ^[5].

Horseradish sales for the year increased by 13.2%, to 2.81 thousand tons

In 2023, 2.81 thousand tons of horseradish were sold in Russia. For comparison, a year earlier, sales were estimated at 2.48 thousand tons. Thus, an increase of 13.2% was recorded. Domestic demand for these products is quite stable, and the market is close to full saturation. This is stated in the review of BusinesStat, presented at the end of August 2024.

The study takes into account the supply of wasabi and traditional horseradish. Among the leading enterprises of the industry are named "Agrocomplex named after N.I. Tkacheva," "Essen Production AG," "Kukhmaster," "Canning Enterprise Russian Field - Albashi," "Sostra," "Bastion," "Petroproduct-Otradnoye," "Europroduct," "Skit Company," "Lytkarinsky Food Plant."

In 2019, according to BusinesStat, 2.86 thousand tons of horseradish were sold in Russia. In 2020, the volume of sales decreased by 0.6%, amounting to 2.85 thousand tons. In 2021, a decrease of 0.5% followed with a final result of 2.83 thousand tons, and in 2022 a reduction of another 12.4% was recorded (to 2.48 thousand tons). Such a sharp decline is associated with stagnation of real incomes of the population, economic uncertainty, the growing popularity of other types of sauces, as well as with a decrease in production due to packaging problems against the background of the formed geopolitical situation. Under the conditions of sanctions, the food industry faced a shortage of raw materials and materials - aseptic cardboard, aluminum caps, moisture-resistant paper labels, paints, glue, etc.

In general, from 2019 to 2023, horseradish sales in the Russian Federation decreased by 1.9%. A decrease in wasabi sales was recorded: this is due to the departure abroad of young people who are the main consumers of sushi and rolls (these products usually include wasabi). In 2023, a significant part of the relocants returned to Russia, which, together with the general stabilization of the economic situation within the country, led to a recovery in demand.^[6]

The market for food additives in Russia grew by 9% to 165.1 thousand tons

In 2023, sales of complex food additives in Russia amounted to approximately 165.1 thousand tons. This is almost 9% more compared to the previous year, when the volume of sales was estimated at 152 thousand tons. The industry is showing steady positive momentum, according to the BusinesStat review published in early September 2024.

According to estimates, in 2019, 79.7 thousand tons of food additives were sold on the Russian market. In 2020, an increase of 19% was recorded - to 94.8 thousand tons, and in 2021 - by another 42.1% with a final result of 134.7 thousand tons. In 2022, the increase was at the level of 12.8%. In general, during 2019-2023, sales of complex food additives in the Russian Federation increased 2.1 times.

The authors of the study highlight several key factors that contribute to the development of the industry. One of them is the emergence of new types of food, the production of which requires a high-precision dosage of components: complex mixtures and additives help to comply with the necessary proportions. In addition, there is a change in consumer preferences: this is an interest in a healthy balanced diet, conscious consumption, refusal of harmful components in food, an increase in the proportion of processed products (semi-finished products and ready-to-eat dishes) in the diet due to the acceleration of the rhythm of life. The demand for food additives is also stimulated by the desire of manufacturers to improve the efficiency of the manufacture of products, while maintaining a high level of quality.

Among the significant players in the market under consideration are Rusagro-Saratov LLC, Mareven Food Santral LLC, Deler Nachrel Food End Beveridge Ingredients LLC, Puratos JSC and Green Lines LLC. Analysts believe that the Russian industry of dietary supplements is far from saturated, and therefore the demand for products will continue to increase.^[7]

Increase in consumption of sugar syrup by 21.2% to 9.18 billion rubles

At the end of 2023, the volume of sugar syrup consumption in Russia reached 9.18 billion rubles. This is 21.2% more compared to 2022, when sales were estimated at 7.57 billion rubles. The corresponding indicators are reflected in the review of the analytical agency "GuideMarket," published on August 6, 2024.

In 2019, according to estimates, sugar syrup in the amount of 4.74 billion rubles was sold in the Russian Federation. In 2020, there was a significant decrease in consumption: sales decreased by 15.8% - to 3.99 billion rubles. The reason for this was the introduction of restrictions on visits to cafes, bars and restaurants, as well as other places of recreation and catering in connection with the COVID-19 pandemic.

But already in 2021, the industry showed an increase of 46.3% with a final result of 5.84 billion rubles. This is due to the lifting of restrictions, the restoration of the catering market, as well as an increase in production in accordance with demand. In 2022, an increase of 29.8% followed. Analysts identify four key factors affecting the consumption of sugar syrup in Russia:

· Consumer preferences: Over time, buyers' tastes change, which leads to a change in demand for certain types of products, including sugar syrup;

· Development of the industry: new technologies stimulate the emergence of alternative products that compete with sugar syrup. These are, for example, artificial sweeteners, due to which the demand for sugar syrup may decrease;

· Changes in raw material prices: fluctuations in the cost of sugar, which is the main component for the production of sugar syrup, affect the cost of production and, therefore, the consumption of products;

· Seasonality: sales of some products, including sugar syrup, depend on the time of year. So, in the summer, the demand for soft drinks, for the preparation of which sugar syrup is used, increases.^[8]

Decrease in starch production by 1.1% to 50.4 thousand tons

In 2023, approximately 50.4 thousand tons of wheat starch were produced in Russia. This is 1.1% less than in the previous year, when the output was estimated at 51 thousand tons. In general, the wheat starch market in the Russian Federation is relatively stable, as stated in the BusinesStat study, the results of which were published in mid-June 2024.

Starch is widely used in various industries, including in the food industry (sausage, confectionery, bakery and other segments), pulp and paper production, textile, construction and other areas. Among the key players in the Russian market are named Cargill LLC, Biotechnological Complex-Rosva JSC, Miranda LLC, Partner-M JSC and Foodmix LLC.

According to estimates, in 2019, approximately 50.3 thousand tons of wheat starch were produced in Russia. A year later, production rose 5%, reaching 52.8 thousand tons. In 2021, a significant decline was recorded: the volume of production decreased by 23.9% on an annualized basis - to 40.2 thousand tons. This is partly due to a twofold increase in starch imports to Russia - from 5.4 thousand to 10.5 thousand tons.

In 2022, as noted in the BusinesStat review, wheat starch production in the Russian Federation jumped by 26.8%, reaching 51 thousand tons. The deterioration of the geopolitical situation contributed to an increase in demand for domestic products - especially due to import substitution in the pulp and paper industry. In addition, the increase in the utilization of production capacities for deep processing of wheat grains stimulated high yields and falling prices for major grain crops. Until 2022, wheat starch was imported into Russia from Latvia in a large volume. However, in 2023, supplies from this country almost completely stopped.^[9]

Gelatin sales growth by 15.4% to 12.1 thousand tons

In 2023, approximately 12.1 thousand tons of gelatin were sold in Russia. This is 15.4% more compared to the previous year, when 10.52 thousand tons of these products were sold. A study by BusinesStat, published in mid-April 2024, says that after the worsening geopolitical situation, the situation in the segment of the Russian market under consideration began to stabilize.

Gelatin is widely used in the production of various food products (ice cream, yogurt), ready-made dishes (pour, mousse), confectionery (creams, cakes), as well as meat and fish canned food. At the same time, as noted in the BusinesStat report, as of the end of 2023, the basis of the Russian gelatin market is imported products. Domestic manufacturers purchase gelatin abroad, pack it into retail packaging and indicate themselves as a manufacturer.

According to estimates, in 2019, gelatin sales in the Russian Federation amounted to about 8.94 thousand tons. In 2020, the volume of sales rose by 3.6% - to 9.26 thousand tons, and in 2021 an increase of 16.5% was recorded with a final result of 10.79 thousand tons. In 2022, a 2.5% decline followed, which is associated with a decrease in business activity in the country due to the economic crisis, the imposition of sanctions, an increase in the key rate CENTRAL BANK OF THE RUSSIAN FEDERATION and a change ruble in exchange rate against foreign currencies.

In 2023, gelatin sales in Russia returned to growth. The imposed sanctions stimulated companies to replace imported products, which pushed the Russian industry, including food, to develop and increase output. It is noted that in 2023, the Miratorg-Zhelatin plant was launched in the Kursk region, which by 2025 intends to bring the annual production of relevant products to 6 thousand tons. This will reduce the purchase of gelatin abroad.^[10]

Growth in food production by 5.9%

Russia According to the results of 2023, food production increased by 5.9% compared to the volume of one year ago. This is evidenced by data Rosstat published in February 2024.

From the materials of the department it follows that in 2023 the production of rice increased (by 10.7%, to 610.8 thousand tons), flour (by 1.8%, to 9.1 million tons), buckwheat cereals (by 5.1%, to 541.6 thousand tons), the production of bakery products decreased (by 1.5%, to 5.1 million tons).

Food production in Russia in 2023 increased by 5.9%

According to Rosstat estimates, the fat and oil industry produced 2.7 million tons of refined sunflower oil and its fractions in 2023, which is 5.5% more than in 2022. The production of unrefined sunflower oil in 2023 increased by 13.2%, to 6.9 million tons.

It is also reported about a 3.8% increase in the production of chocolate and confectionery products at the end of 2023 - up to 2 million tons. Also in 2023, manufacturing volumes increased in Russia:

• cheeses - by 16.2%, up to 792.3 thousand tons;
• sour cream - by 6.7%, up to 583.5 thousand tons;
• fish preserves - by 7%;
• meat and meat-containing semi-finished products, chilled or frozen - by 6.1%, up to 4.7 million tons;
• boiled sausages - by 1%, up to 1.7 million tons.

In 2023, the production of cottage cheese decreased by 4.4% (to 440.7 thousand tons), butter - by 1% (to 323.4 thousand tons), pasta - by 4.3% (to 1.5 million tons).

According to the press service of the Ministry of Agriculture of the Russian Federation, commenting on the data on the production of food products in 2023, in general, the Russian food and processing industry demonstrates high efficiency in the current conditions, the ability to steadily develop and provide the domestic market with the necessary volumes of high-quality products.^[11]

Growth in the production of equipment for the food industry by 27.5% to 128 billion rubles

The production of machinery and equipment for the food industry in Russia in 2023 reached 128 billion rubles, which is 27.5% more than a year earlier, when the figure was about 100.4 billion rubles. Such in the Russian Association of Manufacturers of Specialized Equipment and Equipment (Rosspetsmash) led in January 2024.

As noted by Roman Salomatin, Deputy Director of Rosspetsmash for Food Engineering, the association does not calculate the production of equipment for the food industry in physical terms due to the high degree of individualization of products.

The production of machinery and equipment for the food industry in Russia in 2023 reached 128 billion rubles

In some separate areas, statistics can be kept in jokes, but in general in the industry it is not possible, since the equipment is very diverse - both in terms of production volumes and in terms of its characteristics, - he explained.

According to Salomatin, the main measure to stimulate demand in the segment of equipment for the food industry is related to Government Decree No. 823. In 2023, the budget for food engineering amounted to 1.3 billion rubles, 2 billion rubles are planned for 2024. Also, in addition, in 2023, equipment for the food industry is included in preferential leasing programs - it is planned that from 2024 Rosagroleasing will actively develop and increase support for the food and processing industries, a representative of Rosspetsmash said.

The largest share in the industry is occupied by equipment for the production of flour, cereals and feed - in total, this industry accounts for 52% of the market - and equipment for catering establishments, it also accounts for 52%. In second place is equipment for the dairy industry (47%), in third place is equipment for packaging and bottling (35%).^[12]

2022

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.

According to analysts of the credit institution, the leaders in the sale of ready-made food in 2022 were the Jewish Autonomous Region, Tyumen, Kirov, Omsk Regions, and the Yamalo-Nenets Autonomous Okrug. In the structure of the total expenses of the population of these regions, the purchase of finished products takes more than 10%. On average, a Russian resident allocates about 7% of the total expenses for the purchase of ready-to-use products, not counting visits to cafes and restaurants.

Since 2017, the volume of ready-made food production has grown by an average of 55% annually. Taking into account this dynamics, it is expected that in 2025 the market may reach a volume of 800 thousand tons, according to the Rosselkhozbank.

According to the study, food sales in the ready to eat and ready to cook categories in 2022 increased by 4.7% compared to 2021 amounted to 2.28 trillion rubles.

Ready-made food services will occupy a certain share, working at the junction of HoReCa and retail. For customers, this is convenient and does not take much time, and for business, the opportunity to expand the range and audience of consumers offered. Companies are already using different formats of work in parallel, for example, darkstors2 or individual kitchens that cook only for delivery, so this segment will develop and take on new forms, "said Andrei Dalnov, head of the Rosselkhozbank Center for Industry Expertise.

According to the Unified State Register of Legal Entities, in 2022, 30 thousand food production facilities were registered on the Russian market. In addition to the usual worries such as logistics, rising prices for raw materials, packaging materials, equipment and its components, companies from this business area also face the problem of assessing and controlling the quality of products, changing purchasing habits towards savings, the Rosselkhozbank notes.^[13]

Gelatin sales decreased by 26.8% in Russia - up to 16 thousand tons

In 2022, 16 thousand tons of gelatin were sold in Russia, which is 26.8% less than a year ago. Such data in August 2023 led to the research company BusinesStat.

Food gelatin is mainly used in the food industry, where it produces various food products, ready-made dishes and confectionery products. In winemaking, gelatin is used to clarify difficult-to-filter wine materials and correct coarse wine materials with increased tart. Food gelatin is also used in the pharmaceutical industry, where it is used to make capsule shells as well as plasma substitutes. With the growth of consumption of such products in Russia, the demand for food gelatin in the country increased, analysts say.

According to them, by 2022, food gelatin on the Russian market was almost completely represented by imported products. In 2022, due to the aggravation of foreign policy relations, imported gelatin supplies to Russia decreased by 7.5%, or 0.9 thousand tons. The dependence of the domestic food gelatin market on imports spurred manufacturers to start developing projects in this area.

In 2022, the Russian holding Miratorg began construction of two enterprises in the Kursk region for the production of gelatin and processing of pork mucose. The design capacity of the gelatin plant is 6 thousand tons per year. Investments in projects exceeded 4.5 billion rubles. The Administration of the Kursk Region announced the intention of Pharmstandard Group of Companies to expand the production capacity of its plant. According to plans, in 2024, the production of medical gelatin will be launched on the basis of the enterprise. The production of medical gelatin in the Kursk region will be the first in Russia.^[14]

2021: Cheese production - 7.4 kg per capita

See also

• Digitalization of the food industry

Notes