Emily McCormack, Moscow Office, Bord Bia – Irish Food Board

Russia continues to remain the second largest confectionery market globally, and remains open to EU access. Although its per capita annual confectionery consumption is about 5kg, (lower than Germany and France’s 8kg), it remains a significant player in the global confectionery market.

Women make up about 57.1% of consumers of confectionery by volume, while men account for 42.9%. Russia traditionally has strong indigenous chocolate producers, with Soviet brands such as Krasnie Oktyabr retaining popularity to this day. However, there are opportunities in the market for more innovative brands, for artisanal style products, and for different flavours and experimentation within the category. Private label opportunities are also growing within many retailers.

In terms of retailers, convenience stores account for the greatest share of confectionery bought in Russia, making up about 46% of the market. Hypermarkets and supermarkets account for 29%, and department stores make up 11% of the confectionery market. As the Russian retail market continues to consolidate, it is generally expected that supermarkets will hold a greater share of product sold.

Russia, despite 2014’s economic slowdown, remains home to some of the fastest growing retailers in the world. Magnit and X5 lead this retail growth, being listed on the London Stock Exchange along with Saint Petersburg based Lenta. Magnit, for example, expects growth of 22% for 2014 alone.

Despite a slowdown in the economy and ruble devaluation, Russia remains an important global market, and for those with a long-term perspective it is likely to bring rewards.

For more information contact: emily.mccormack@bordbia.ie