"Production of food and beverages in Russia. Development prospects in 2017"

N.B.! The research is available in English and Russian.

Relevance of the research "Production of food and beverages in Russia: Highlights of 2016. Development prospects in 2017". Food production in Russia faces a period of fast-paced development and has been one of the drivers of industrial production in the last 3 years. Due to the embargo imposed in 2014 on many food categories sourced from the United States, the EU, Canada, Australia and Norway, Russia had to rebuild its import of foods, as well as actively develop the food industry. The challenging macroeconomic situation seriously weakened the ruble: the price of foreign equipment and raw materials skyrocketed for Russian producers. This also gave strong impetus for the development of agriculture and food production. With the lack of competition and annual government support, Russian manufacturers began to accelerate growth and fill the domestic market with their own products. During the period of falling real personal incomes and, as a consequence, low purchasing power, consumers shifted to Russian-made brands, primarily because of their lower cost. In 2010, the President approved the "Food Security Doctrine" that pursued to reduce the dependence of the country on imports, 70-90% of the target was met in 2015, and the indicators grew even further in 2016. In addition, against the backdrop of growing food and beverage production, the government focuses on quality. So, in 2016, the Strategy of improving food quality was approved until 2030.

The development of food production, including beverages, and tobacco has demonstrated an upward trend year-to-date. In January-December 2016, the growth continued and amounted to 2.4% compared with 2015.

To obtain in-depth insights into the state of affairs in the industry and understand how and in which areas it will develop further, we have conducted comprehensive research of the food industry and the food market. This product will help you to determine the position of your company relative to the dynamics of the industry and define future business development.

Purposes of the research: 

• review and analysis of the state of affairs in Russia’s industry and its sectors (meat, fish, fat, milk, flour, confectionery, cereals, pasta, sugar);
• review of food production and consumption dynamics and the development course of the Russian industry through the description of landmark events;
• description of state regulation and support of the industry in Russia;
• identification and description of major M&A in Russia;
• analysis of export and import performance in Russia and international business of companies engaged in this industry.

Top synergistic effect can be achieved through the combination of the research “Production of food and beverages in Russia. Highlights of 2016. Development prospects in 2017” with other INFOLine studies on the industry:

• "Macroeconomics and condition of processing industries. Highlights of 2016. Development prospects until 2019"
• Regular monitoring of the farming sector, food industry and food market as part of Theme-based news service:
  • Theme-based news: “Russia’s food industry and food market”
  • Theme-based news: “Russia’s market of low-alcohol beverages, soft drinks and beer”
  • Theme-based news: “Russia’s market of liquor”

Databases of market players:

• • “120 Russia’s largest greenhouse facilities: 2016”
  • “280 Russia’s largest meat processing companies: 2015”
  • “250 Russia’s largest poultry farms: 2016”
  • “230 Russia’s largest livestock farms: 2016”
• Industry-specific reviews:
  • "New products in the market of meat and delicacies: 2016"
  • "New products in the market of milk and dairy: 2016"
  • "New products in the market of oil, butter, fat and sauce: 2016"
  • "New products in the market of pastry: 2016"
  • "New products in the market of bread, frozen bread and bakery, ready-to-cook pastry, cereals and grains: 2016"
  • "350 largest construction projects of farms and food production facilities in Russia. Projects of  2017-2020"

The research findings can be used in: marketing and strategic planning. Overall analysis of the farming industry and the food industry, as well as benchmarking and competitor analysis of companies.

Research timeline: diverse indicators of the industry since 2011, general statistics for the country and regional statistics as of 2016 (volume production and sale of food products by category), development prospects in 2017 (macroeconomic indicators of Russia, individual investment projects).

Research schedule: Q3 2017

Research advantages: In addition to the detailed analysis of Russian industry’s development, the research features:

• several original ratings compiled by INFOLine (including the rating of the largest producers and suppliers of food in the Russian Federation, the rating of the investing activity in the food industry, which included such companies as PEPSICO HOLDINGS, Nestle Russia, Mars LLC, DANONE in Russia, Baltika Breweries, EFKO Group, NMGK Group, KDV-Group), etc.;
• market survey of leading FMCG suppliers;
• review of the customs data for 2013-2016;
• unique data on the upgrade and construction projects of food industry enterprises in Russia
• the study describes the trends of launching new products on the domestic market and their comparison with the trends in the CIS and the EU, the United States, and other countries.

Research objectives and structure by sections: 

Part I. Current condition of Russia’s industry: key indicators of agriculture and food production, data on lending of producers, the volume of food exports and imports.

Part II. Investments in Russia’s food industry: description of investing activity in the farming industry and food industry, ratings of the largest projects.

Part III. Landmark events of Russia’s industry: measures aimed at the government support of the industry, legislative changes, mergers, resignations and appointments, international activities (food market development, expansion of the food embargo list, import substitution)

Часть IV. Condition of Russia’s individual sectors: detailed description of the state of affairs in all areas of the industry (processing of meat, milk, fish and seafood, production of fat and oil products, sugar, confectionery market, bread and bakery, grain processing, processing and canning of vegetables, market of drinks), in-progress projects of companies, specific investment plans of companies, in particular, the launch and completion of enterprise construction.

Part VI. Rating of the largest Russia’s food manufacturers and suppliers: description of the largest market players, visualization of the geographical location of assets of groups and brands, the progress of financial indicators.

Part VII. Development prospects of Russia’s food production: description of development scenarios for the food industry in 2017.

Track record and references:  INFOLine IA has offered customized research and published independent studies on FMCG retail and food market since 2005. Our regular customers are FMCG chains (including the market leaders: Magnit, X5 Retail Group, Auchan, DIXY, Metro Cash&Carry, Lenta, O’KEY, Selgros, Maria RA, etc., domestic and foreign manufacturers and suppliers of groceries, farming companies (Dymov Group, Valio, Soyuzoptorg, Karavay, UNICONF, Solnechnye Produkty Group, KBK Cheremushki, BKK Kolomensky, Stern Ingredients, Sibirsky Gurman, Mondelēz Rus, NMGK Group, Blago Group, Soyuzsnab, Rusagro Group, Baltika Breweries, EFKO Group, Coca-Cola, Pepsi, SABMiller, Fazer, Mars), etc.

Sources:

• Data of the Federal State Statistics Service of the Russian Federation, the Ministry of Economic Development of the Russian Federation, the Ministry of Regional Development of the Russian Federation, the Ministry of Agriculture of the Russian Federation, the Foreign Agricultural Service, the US Department of Agriculture, the Analytical Center under the Government of the Russian Federation, the National Rating Agency, the Federal Customs Service of the Russian Federation, and the UN Food and Agriculture Organization;
• INFOLine’s database by areas “Investment projects in Russia’s industrial construction”; “New products in the food and beverages market”;
• regular mass media monitoring as part of Theme-based news: “Russia’s farming industry”, “"Russia’s market of low-alcohol beverages, soft drinks and beer", "Russia’s market of liquor", “Russia’s food industry and food market"
• data of the largest agricultural and processing companies (website materials, press releases);
• materials of more than 5,000 Russian mass media (daily monitoring of the federal and regional press, news agencies, electronic media), as well as the industry press.
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