Russian Imports of Confectionery EquipmentResearch by the Company “ID-Marketing”
In 2016, production of confectionery in Russia amounted to 3,553 thousand tons, which is 2.6% higher than the figure of 2015. The leading producing regions include Moscow region, Saint Petersburg and Moscow. In 2016 considerable growth in confectionery production was observed in Vladimir and Penza regions, which are among the top 5 producing regions (by 17 and 13% respectively, whereas in Moscow and Moscow region production declined).
In January–May 2017 production of confectionery in Russia increased by 1.5%, amounting to 1.4 million tons.
According to “ID-Marketing”, the confectionery market capacity increased by 1.7% in 2016. All in all, a decrease in the share of imported products in the structure of the confectionery industry and an increase in volumes of export sales should be noted in 2016, which was caused, in particular, by the economic and political influence on the industry.
Imports of confectionery equipment* into the country in 2016 amounted to $ 67 million, against $ 75 million a year earlier. In January–May 2017 imports of confectionery equipment declined by15.6% to the similar period of 2016 and equaled $ 20.9 million. In physical terms imports equaled 2.5 thousand units of equipment in 2016 and reached 1.4 thousand units during the period of January–May 2017, which is 88% higher than during the first 5 months of 2016.
In monetary terms, in 2016 and in January–May 2017 the German “Sollich KG” was leading among foreign manufacturers, equipment of which was being purchased by Russian companies. “Sollich” imported $ 13.8 million worth of products in 2016 and $ 4.7 million during the first 5 months of the current year into the country. Confectionery equipment by this manufacturer was purchased by "Essen Production AG” JSC, “Babaevsky” Confectionery Concern” OJSC, “KDV Voronezh” LLC, "Orion International Euro" LLC (Tver) and “Shokolend” LLC (Stavropol Krai). In particular, icing production lines and tempering machines were among the products purchased.
Candy production machines by the German “Winkler und Dunnebier Susswarenmaschinen GmbH” were second in monetary terms from 2016 to May 2017. $ 12.7 million worth of confectionery equipment by this manufacturer was imported during the time period in question, the importers being as follows: “KDV Voronezh”, “Azovskaya Konditerskaya Fabrika (Azov Confectionery Factory)” LLC (Rostov region), “Essen Production AG” and “Mondelez Rus” LLC (Vladimir region).
The three leading foreign companies also include “Hänsel Processing GmbH”. In 2016 – May 2017 confectionery production lines by “Hänsel Processing” were purchased by “KDV Voronezh” and “Sladkie Traditsii (Sweet Traditions)” LLC (the Mari El Republic).
Among the purchasers of imported equipment in 2016, the leader was “KDV Voronezh”, which launched a factory for snack and candy production near Voronezh. According to the manufacturer, once the factory switches to full capacity 33 lines will operate in it, producing around 20 types of goods with the total product volume of 500 tons per day. It should be noted that production of confectionery in Voronezh region in 2016 grew by 58.9% – in particular, chocolate and sugar confectionery, by 92%; waffles, gingerbread and cookies, by 42%.
“Azovskaya Konditerskaya Fabrika” and “Mondelez Rus” were second and third respectively in equipment import volumes in monetary terms.
During the first 5 months of 2017, leadership in purchases was also held by “KDV Voronezh”.
With supplies not segmented into types, the Chinese “Guangzhou ETON Electromechanical Co., Ltd” leads in imports in quantitative terms – its share in 2016 – May 2017 amounted to 22.1%. Equipment for cotton candy production in street trade and fast food facilities, cinemas and other places makes up the whole volume of goods supplied by “Guangzhou ETON Electromechanical”, and same applies to products by its nearest competitor – “Foodmax Machinery Co., Ltd”. The share of equipment of the latter equaled 20.6%. The three leaders also include “Rudong Jiahua Food Machinery Co., Ltd” with the share of 12% of imports in physical terms; planetary mixers were the products supplied.
All in all, leadership in imports of confectionery equipment in monetary terms belongs to German manufacturers – they accounted for 65% of supplies in 2016 and for 42.2% in January–May 2017. It should be noted that Germany is the global leader in the segment as well. In 2016 global exports amounted to $ 797,710 thousand, the share of German equipment reaching 32.7%. The bulk of supplies were automated production lines.
The analysis of confectionery equipment imports in physical terms indicates that the prevailing share belongs to Chinese products. For instance, in 2016 China accounted for 83.3% of imports. In January–May 2017, the share of Chinese manufacturers equaled 85.7%. The range of equipment imported from China differs significantly from European supplies. China’s share in confectionery equipment supply to the global market in 2016 reached 5% in value terms.
In support of manufacturers of food processing equipment within the country, a program for subsidizing domestic producers of machinery and equipment for the food industry was implemented until the end of 2017. In particular, a manufacturer may be eligible for a subsidy provided that it gives a 15% discount to purchasers buying products manufactured not earlier than in 2016 under contracts signed on January 1, 2017 and later. With the realization thereof, the Ministry of Industry and Trade of the Russian Federation is counting on growth of 25% in food processing equipment production and expects it to expand to exports in the long term. For comparison, Russian exports of confectionery equipment with supplies to countries of the Customs Union not taken into account amounted to $ 1.8 million in 2016 and $ 451 thousand in January–May 2017. The bulk of exports in 2016 went to Spain, Estonia and Ukraine – the shares of these countries equaled 25, 13.5, 13.1% respectively. Over the first 5 months of 2017, the main purchasers of Russian confectionery equipment in monetary terms were Germany, Latvia and Turkey, with the shares of 24, 18 and 13.8% respectively.
In 2016 Russia was second in purchases of foreign confectionery equipment in value terms, following the USA.
* Analysis for the TN VED code TS 84 38 200000 – equipment for the confectionery industry and production of cocoa powder and chocolate.
Research Company “ID-Marketing”