Russia’s economic situation is
affecting the beverage sector because consumers are spending more on affordable
beverages. The ever growing population in Russia is one of the major factors
for growth in the affordable beverage sector. The living standards in Russia
declined due to consumer’s lower spending limit. The lower income group and
middle income group have economized. However, the poverty level in the country
is growing and the population is looking for ways to save their money. Health
awareness continues to influence consumer’s beverage consumption choices.
Russian government is providing generous subsidies to boost domestic production
of beverages, to reducing imports and become more competitive.
According to the study “Russia
Beverage Forecasts March 2017”, it was observed that there is a decline
in the consumption of beer in Russia due to price and it has led to the growth
in regional inexpensive beer brands. Beer advertising is only permitted during
sports in television and radio programmes. Currently, beer advertising is
continuing due to the FIFA World Cup that would be held in Russia in the year
2018. Baltika Pivovarennaya Kompaniya is the leading competitor of beer in
Russia. Baltika has introduced new non/low alcohol beer with brand name Zatecky
Gus attracting the consumer’s who are interested in non/low alcohol beer. The
production capacity is increasing due to its great demand for non/low alcohol
beer.
The sale of cider/perry has increased
drastically in the recent years due to boom in domestic cider production and
availability of cider/perry in modern retailers. Young population are attracted
towards the cider/perry which is a natural low alcohol drinks compared to beer.
Baltika Pivovarennaya Kompaniya is the leading producer of in Russian
cider/perry with a large distribution chain. Russia passed laws stating that
domestically cider/perry is categorized as an agricultural product similar to
wine.
United Bottling Group is the leading
manufacturer of RTDs or high-strength premixes in Russia. The country has
banned sales of high-strength premixes or RTDs containing caffeine and taurine
that have energising effects. The growth of wine-based ready to drink beverages
in Russia has witnessed a low growth in the past years but there is a demand
for wine based RTD’s due to offers, increasing number of female consumers and
no limitations on sales. Russian health committees state that alcohol combined
with caffeine and other stimulant have a great impact on the central nervous
system in a human and has dangerous health effects. It was observed that the
spirit-based RTDs are predicted to decline over the coming years. The wine
category in Russia is highly fragmented due to many players. The leading
players in the wine category are Kuban-Vino OOO, Igristye Vina ZAO, MZVV OOO,
Viktoria TD OOO and Fanagoriya APF OAO. The leading player in Russian sparkling
wine is Abrau-Durso JSC.
Vodka category has stagnated in
Russia due to its illegal sales. The increased availability of economy vodka in
Russia has supported the legalisation process of vodka’s sales in the recent
years. Tatspirtprom OAO, Synergya OAO are the leading competitors in the
spirits category. Tatspirtprom has significantly increased the distribution of
vodka brands such as Russkaya Valyuta and Xanskaya. Russian reviving economy
and rising cafe culture are the major factors affecting the hot drink beverages
sector, where hot drinks are hot coffee, hot tea and hot chocolate drinks.
Hypermarkets, supermarkets, convenience stores, food & drinks specialists,
e-Retailers and others account for the majority share in the distribution of
hot drinks. Orimi Trade, Princess Gita, Ahmad Tea and Nestle are the leading
players in the Russian hot drinks sector.
Consumption of soft drinks in
Russia has decline due to price and consumers’ demanding for better products.
Bottled water, popular soft drinks, sports and energy drinks and RTD coffee
witnessed a growth while the growth other variants of soft drinks continued to
decline. The juice and RTD tea category has remained weak due to the
significant price increase. The soft drinks category includes Asian speciality
drinks, bottled water, carbonates, concentrate juice, juice, RTD coffee, RTD
tea, sports and energy drinks. Energy drinks category remained highly immature
and has registered a slight growth in the recent years due to the wide
distribution and consumer awareness. Dairy drinks, soy drinks, milk
alternatives such as condensed milk, drinking yogurt, fermented milk, flavoured
milk, grain nut rice and seed milk alternative drinks, soymilk, white milk are
few other beverages available. It was observed that there is a minimal growth
of these products in the Russian beverages market.
Many new laws regulating Russian
beverages market were imposed in the past year. The major concern is the excise
duty rates and usage of PET (Polyethylene terephthalate) for alcoholic
products. The excise duties on most of
alcoholic drinks is raised and on the exported ingredients used for making
beverages. Russia bans production and sales of alcoholic products in plastic
bottles. Alcoholic drinks category in Russia has declined in terms of volume
and sales in the recent years due to decline in consumes’ spending income. The
government's anti-alcohol policy has also reduced the consumer’s purchasing
power.
Spirits category in alcoholic
drinks has witnessed a marginal decline due to the illegal sales of vodka’s.
Cider/perry category has developed dynamically in Russia. Majority of the
Russian consumers are demanding for economy products across all categories due
to the country’s economic conditions. It was observed that there was a stiff
competition across all categories of alcoholic drinks. The domestic companies
are actively developing and collaborating with international giants. The small
independent players in Russia are dynamically developing in the beer sector.
Many domestic players in wine category are gaining momentum and enjoying the
Russian legislative privileges of low excise tax. The imported brands in
spirits, RTD’s and cider/perry are witnessing a decline of imported brands due
to their price. Grocery retailers are the leading distributors of alcoholic
drinks in Russia along with the development in the alcohol speciality stores.
These alcohol chain outlets offer alcoholic beverages at affordable prices and
convenient locations. The alcoholic beverages market in Russia is expected to
witness a continuing decline over the coming years due to less demand, slow
recovery of spending incomes and increasing excise tax.
Key Topics Covered in the Report:
Russia Naturally Healthy Beverages
Market Research Report
Russia Naturally Healthy Beverages
Market Size
Russia Non Alcoholic Beverages
Market
Russia Non Alcoholic Beverages
Import Volume
Russia Non Alcoholic Beverages
Export Volume
Russia Naturally Healthy Beverages
Market Future Outlook
Russia Healthy Beverages Market
Competition
Russia Beverages Retail Market
Russia Juice Market Demand
Russia Coconut Water Demand
Beer Market Research Report Russia
Alcoholic Beverages Market Russia
Russia Juices Market Revenue
Soy Milk Consumption Russia
Wine Consumption Russia
Russia Non Alcoholic Beverages
Market Competition
Russia Non Alcoholic Beverages Market
Future Outlook
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Ken Research
Ankur Gupta, Head Marketing &
Communications
0124-4230204
