Market Focus: Trends and Developments in the Confectionery Sector in Russia

 Published On: Oct, 2013 |    No of Pages: 39 |  Published By: Canadean | Format: PDF
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Product Synopsis

This report provides a concise overview of the Confectionery market in Russia. After reading this report, you will understand the size of the market, the economic, demographic, and behavioural trends that will drive its evolution and the leading players within the market, allowing you to plan effectively for the future.

Introduction and Landscape

Why was the report written?
This overview of the consumer and market dynamics of Russian Confectionery sector allows new entrants and established players to gain rapid and comprehensive insight into the current state of the market and identify the key trends that will drive growth in the coming years.

What is the current market landscape and what is changing?
Russia’s aging population is driving demand for small portions of better quality food. A growing middle class with rising disposable income is creating opportunities for premium Confectionery products. Health conscious eating and an inclination towards convenience foods are increasing.

What are the key drivers behind recent market changes?
Russia’s aging population is driving demand for small portions of better quality food. Busy lifestyles are creating demand for convenience food which saves time and are easy to eat, creating opportunities for Confectionery. Furthermore, product innovation coupled with premiumization driving growth in Russian Confectionery Market

What makes this report unique and essential to read?
This report brings together consumer insight and market data to provide a comprehensive brief of Russia’s Confectionery sector. This allows for the rapid identification of key growth opportunities across three Confectionery categories and their packaging.

Key Features and Benefits

Analysis of consumer behaviour, economic conditions and demography reveals emerging opportunities in the Confectionery sector.
Key growth categories are highlighted by analysing the market dynamics of three Confectionery categories.
Market shares are provided for the leading brands across Confectionery categories.
An overview of packaging trends in Russian Confectionery sector is provided, including primary packaging material and type, packaging closures, and outer packaging.

Key Market Issues

Russian retail players such as X5 Retail Group and Magnit, continue to lead retail space; however, the French Auchan and German Metro Group have gained significant market share in the last decade. Hypermarkets & Supermarkets continue to constitute the largest retailers, followed by Convenience stores, and Food & Drink specialists.
Convenience plays a major role in Confectionery sales, owing to the impulse nature of the category. Convenience Stores are the most important retail outlets for Confectionery in 2012. Hypermarkets & Supermarkets and Department Stores are the second and third most important retail formats for confectionery in value terms.
Older consumers, aged 55+ constitute over one fifth of the consumption in Confectionery market indicating opportunity for healthy product line, so that Russians can have guilt free indulgence.
The most important motivation for Confectionery Consumption, by far is Indulgence, followed by Better Value for Money and Personal Space & Time.
Marketers are innovating to target consumer's personal space and time with confectionery products. Companies are also focusing on quality seekers with handmade chocolates to offer more value to products targeting gifting occasions.

Key Highlights

Russians’ growing disposable income and strong propensity to look for indulgent, quality confectionery will increase opportunities for artisanal style and handmade chocolates.
Russian chocolates are less sweet than the North American variety and popular chocolates are most often fruit or liquor filled.
Consumers in households with a total income in or above the 50th centile of the country eat over one-third of Confectionery in Russia.
Experience seeking is among key motivation that influences chocolate consumption in Russia.

Table of Contents

Country Context
-          Rising Income and growing middle class are fuelling growth in Russia
-          Russia retail market varies significantly with regional parameters
-          Convenience plays a major role in Confectionery sales, owing to the impulse nature of the category
-          Busy life style impacting Confectionery market, as small size products increasing considered for snacking
Consumer Overview
-          Moderate and Better Off wealth group driving consumption, can be encouraged to trade-up with Premium Confectionery
-          Majority of Russian Confectionery consumers have heavy consumption habit
-          Indulgence, quality seeking and experience seeking impacting Confectionery market in Russia
-          Indulgence and better value for money products driving demand in Confectionery Sector
-          Marketers are offering occasion based Confectionery products
Sector Analysis
-          Product innovation coupled with premiumization driving growth in Russian Confectionery Market
-          Innovation and product positioning helping Sugar Confectionery and Gum category to grow faster
-          Fluctuating exchange rates have added complexity to the Russian Confectionery market
-          Premium Chocolate and innovation in Gum products are driving value growth in the Chocolate and Gum categories
-          Innovation and healthy positioning driving Sugar Confectionery category
Brands & Private Labels
-          Confectionery Private Label penetration at nascent stage in Russia
-          Private Label growing faster in Chocolate and Sugar Confectionery category
-          Key brands by category
Packaging Insight
-          Chocolate Category’s high volume share is creating demand for Paper & Board and Flexible Packaging Material
-          Usage of Flexible Packaging growing faster than other packaging material
Future outlook – key trends in Russia’s Confectionery sector
-          Opportunities with Artisanal Brand
-          Experimentation with new flavors
-          Premium Confectionery will grow
-          Innovation in texture and design
Data Appendix & Summary Methodology

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