Gardening in Russia

2024: Russia's first fulvat plant built to serve as natural plant growth boosters

In early August 2024, the first plant in Russia for the production of fulvats, natural plant growth stimulants, began work in the Guryevsky district of the Kaliningrad region. Kaliningrad Potassium LLC, located in the village of Ushakovo, specializes in processing peat into high-quality preparations for crops with a high content of fulv and humic acids. Read more here.

2023

Sales growth of garden plants by 35.1% to ₽109 billion

In 2023, the market for trade in garden plants in Russia reached a record ₽109 billion, which is 35.1% higher than in 2022. This became known in October 2024.

Ka reports "GuideMarket," such an increase is due to high demand for products, as well as comprehensive state support for the industry. After the COVID-19 pandemic, which negatively affected the market in 2020-2021, there has been steady growth in the past two years. In 2020, the market volume decreased by 4.3%, and in 2021 the decline was 4.7%. However, from 2022, the recovery began: the growth rate reached 4.1%, and in 2023 the figure soared to 35.1%. The real growth of the market, taking into account inflation, amounted to 26.2%, which confirms the steady demand for garden plants and products for landscaping.

According to GuideMarket, the demand for garden plants was largely stimulated by the transition to remote work and the desire of people to improve their living space. Gardening and landscaping have become popular hobbies, causing a sharp increase in interest in plants and landscaping.

An important factor for the market was also government support measures, including subsidies for the agricultural and construction sectors, as well as preferential mortgage programs that stimulate demand for suburban housing. An increase in demand for suburban areas increased interest in landscaping, which contributed to an increase in sales of garden plants. In addition, import substitution and the growth of domestic production made it possible to significantly expand the range and improve the quality of products.^[1]

Plant imports in Russia for the year increased by a third to 348.3 million units

In 2023, the supply of imported garden and potted plants to Russia increased by a third compared to the previous year, reaching 348.3 million units. At the same time, compared to 2019, an increase of only 2% was recorded. Such data are reflected in the BusinesStat review, which was published at the end of July 2024.

The study looks at ornamental, fruit and berry crops, as well as seedlings of vegetables, flowers and berries. In 2019, the import of these products into the Russian Federation was estimated at 341.4 million units. A year later, purchases increased by 15.8%, reaching 395.3 million units. And in 2021, a decline of 26.6% followed with a result of 290.3 million units. This is primarily due to the reduction in imports from Belarus - minus 190.7 million units year-on-year. Previously, supplies from this country were dominated by plants grown in European nurseries. But in 2021, the benefit (exemption from VAT) ceased to apply for a number of authorized economic operators when importing products into Belarus, which were then exported to the EAEU countries . The benefit made it possible to supply plants to Russia at low prices.

In 2022, against the background of European sanctions, a further decrease in imports was recorded: purchases decreased by 10.3% - to 260.5 million units. Imports from Hungary (minus 44.4 million units), the Netherlands (minus 10.5 million units), Poland (minus 8.1 million units) and France (minus 3.2 million units) decreased most significantly.

But already in 2023, new ways of importing plants of European producers into Russia were formed, as a result of which imports jumped by 33.7% on an annualized basis. Deliveries from partners from Belarus (plus 127.6 million units), Lithuania (plus 92 million units), Turkey (plus 1.6 million units) and Kazakhstan (plus 1.3 million units) increased significantly. Plants, including from European countries, were imported into the Russian Federation through the borders of these states.^[2]

2022: Cut garden and pot plant imports by 10% to 260m

In 2022, about 260 million garden and pot plants entered the Russian market from abroad, which is 10.3% less than deliveries a year ago (290 million units). This is evidenced by the data of the analytical company BusinesStat, released in November 2023.

According to experts, in 2022, within the framework of European Union the adopted sanctions, a ban was introduced on the supply of planting material: bulbs, tubers, tuberous roots, rhizomes, rhododendrons and azaleas, grafted and unvaccinated roses, other living plants, cuttings and sections. Difficulties in importing plants also arose due to the complication of mutual settlements, transportation and storage of products. Most significantly in 2022, the supply of garden and potted plants from,, and decreased Hungary Netherlands. Poland France

According to the researchers, the Russian market for garden and pot plants is highly dependent on imports: it accounts for more than half of sales. In addition to direct sale, part of the imported plants is intended for growing in Russian nurseries. The largest countries supplying garden and pot plants to Russia in 2022 were the Netherlands, Poland and Belarus.

Despite the development of domestic production, it is completely difficult to abandon foreign garden and pot plants, they say in BusinesStat. The range of Russian manufacturers in 2022 was limited, especially in terms of indoor and ornamental plants. There is also a dependence on imported materials: chemical agents to control diseases and pests, stimulants and growth regulators, seeds and planting material are purchased in a significant amount abroad, the study adds.^[3]

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