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NUMBER:  ¹1   ¹2   ¹4   ¹5   ¹6   ¹7   



¹ 5(2015)

CONTENT


DRINKS
Review of Russian Alcohol Market
Research of the Company “Euromonitor International”

Review of Russian Market of Fruit and Vegetable Juice
Research of the Company “ID-Marketing”


TEA & COFFEE
Review of Russian Market of Tea and Coffee
Research of the Company “Market Analitika (Analytics)”


CONFECTIONERY
Review of Russian Market of Sugar Confectionery
Research of the Company “Step by Step”


MEAT
Review of Russian Sausage Market
Research of the Company “RBC.research”

Consumer Preferences On Moscow Market of Chilled Ready-To-Cook Chicken Products
Research of Marketing Agency “ScanMarket”


FISH & SEAFOOD
Review of Russian Market of Fish/Seafood
Research of Information Agency “CredInform”


DAIRY PRODUCTS
Review of Russian Market of Milk and Dairy Drinks
Research of the Company “GFK Rus”

Counterfeit Products on Russian Dairy Market
Research of Information Agency “Credinform”


INGREDIENTS
Review of Russian Flavor Market
Research of the Company “I-Marketing”

Widening the scope of Energy



FRUIT & VEGETABlES
Review of Moscow Vegetable and Fruit Market
Research of Marketing Agency “FDFgroup”


RETAIL
Retail Trade in Russia
Research of Information Agency “INFOLine”


PACKAGE
Review of Russian Market of Wrappings and Films
Research of the Company “Abercade”


FOODSERVICE
Review of Russian Food Service Market
Research of the Company “NPD”


TRADE SHOWS
The 19th International Exhibition “Interfood 2015”


The 24th International Specialized “Beer-2015” Exhibition and Fair


The 20th International Specialized Exhibition “RosUpak-2015”

Review of Russian Flavor Market
Research of the Company “I-Marketing”

Flavors are mixtures giving taste and aroma to beverages, confectionery, chewing gum, chips and other food products. Practically all carbonated and low alcohol drinks, tonics and RTD cold teas are produced with application of flavors. Formulation of flavor mixtures can be different, they are offered in various forms: concentrates, syrups and powders.
According to “I-Marketing” key consumer of flavors* is beverage industry providing about 50-60% of total consumption volume. Next large consumers are confectioners, manufacturers of chewing gum and dairy products providing about 15-20% of consumption volume and manufacturers of snacks with 10-15%.
Main players of Russian flavor market, according to “I-Marketing”, are foreign companies: “Symrise AG”, “Coca-Cola Midi S.A.S”, “Doehler GmbH”, “Givaudan”, “The Concentrate Manufacturing Company of Ireland”, “Rudolf Wild”, “Aromco Limited” and others. Russian companies mainly specialize in ingredients for cosmetics and perfumes.
In 2014 Russia imported 18 thousand tons of flavors, by 13% more than in 2013. In Q1 2015 import volume constituted about 4 thousand tons which is similar to index of Q1 2014.
In value terms import of flavors accounted for $ 435 million, by 7% less than in 2013. In Q1 2015 import value of the review category constituted $ 65 million, by 39% less than in Q1 2014.
Difference between dynamics of import volume and value is determined by underdeclaration of import contract amounts by customs declarants due to ruble devaluation.
In 2014 flavors were mainly imported to Russia from Germany (6.2 thousand tons or 34% in volume) and France (4.3 thousand tons or 23%). Other important suppliers were Great Britain (1.6 thousand tons or 9%), Ireland (1 thousand tons or 6%), Switzerland (0.9 thousand tons or 5%) and Hungary (0.9 thousand tons or 5%).
In value terms most important foreign suppliers of flavors to Russia in 2014 were France ($ 139 million or 32%) and Ireland ($ 102 million or 23%). They were followed by Germany ($ 84 million or 19%), Switzerland ($ 25 million or 6%), Great Britain ($ 18 million or 4%) and USA ($ 18 million or 4%).
In terms of manufacturers the largest suppliers of flavors to Russia in 2014 were “Coca-Cola Midi S.A.S” (3.8 thousand tons or 21% of import volume) and “Symrise AG” (3.5 thousand tons or 19%).
The leaders of import value in 2014 were the following companies: “Coca-Cola” ($ 132 million or 30%), “The Concentrate Manufacturing Company of Ireland” ($ 39 million or 9%), “Symrise” ($ 40 million or 9%), “Atlantic Industries” ($ 41 million or 9%) and “Givaudan” ($ 34 million or 8%).
In Q1 2015 supplies of the review category by the following companies saw increase in volume over Q1 2014: “Symrise” (+54%), “Coca-Cola” (+5%), “Wild” (+93%), “Pepsi” (+5%) and “Frutarom” (+25%). In value terms most impressive increase was demonstrated by “IFF” (+123%) and “Pepsi” (+54%).
According to Rosstat, in H1 2015 Russia produced 166.1 million dal of flavored carbonated drinks and 26.4 million half-liter bottles of flavored mineral water. Despite increase of segment in absolute terms its share in total production volume of soft drinks declined: in 2010 carbonated drinks provided 30% of production volume while in H1 2015 about 28%.
We are not saying that mineral water will force carbonated drinks off the market. However, consumers will increasingly switch to “healthier” beverages like juice containing drinks and RTD cold tea. Anyway, manufacturers of flavors have nothing to worry about: flavors are used in production of the majority of flavored soft drinks, besides, carbonated drinks so loved by Russians are not going to yield leadership in short term perspective.
Sanctions of 2014 had no direct influence upon Russian market of flavors: import of this category was not banned while increase of prices for imported ingredients (and related increase of ready product unit prices) was not so obvious in the context of hyperinflation.
According to “I-Marketing”, Russian market of flavors is forecasted to grow stimulated by such factors as increasing production of confectionery, chewing gum, snacks and beverages. For instance, production of confectionery in Russia increased by 31% in 2014 over 2010, of chewing gum - by 95%, of chips - 31%.

* Analysis was made for TN VED code 3302 “Mixtures of flavors, mono- and multi-component, used as ingredients for industrial production” excluding flavors for tobacco and perfumes. 

Nikita Fedyushin,
Analyst
“I-Marketing”

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