Russia chocolate confectionery market: RUB 282 billion industry forecast by 2017

Press Release   •   Jul 17, 2013 15:05 BST

Obiedinenye Konditery, a Russian holding company uniting leading manufacturers of chocolate confectionery such as Krasny Oktyabr, Babaevsky Concern, Rot Front and others, remained a strong leader in the Russia chocolate confectionery market and is expected to hold 19% of value sales in 2012. The holding has obtained a wide range of well-known traditional and new brands. The leading brand Alenka has active marketing support and is developed in different chocolate confectionery categories. The company also developed some related products under the same umbrella brand such as different types of cakes. However, chocolate still remains the main product under the brand. The company develops numerous different brands in all categories of chocolate confectionery.

Volume growth of 2% in 2012 was slightly higher than the volume growth in 2011 and the volume CAGR registered over the review period. Chocolate confectionery was vulnerable during the economic downturn in 2009, which was the only year of the category's decrease over the review period. The market in Russia is not mature. During the review period it saw changes both in structure and in consumption – Russians willingly bought new chocolate products, premium-positioned imported and local brands. Within the recession and afterwards they become more price-conscious, but the end of 2011 and especially 2012 were years of rather stable prices for cocoa and thus for chocolate. It allowed consumers to continue following premiumisation.

Chocolate confectionery is expected to continue developing over the forecast period, with constant value sales expected to increase at a CAGR of 1%. Introduction of new or more sophisticated products is going to be a main driver of chocolate products. Manufacturers will position new products as healthier alternatives to traditional sweets. Premiumisation and invention of various new flavours and shapes are expected to be seen further in 2013-2017; however, it will not likely to cause a rapid growth of average unit price. Producers and retailers will be interested in holding prices more or less stable due to increasing competition.

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