The analysis of production statistics in the Russian market of coffee shows that natural roasted coffee output has been steadily growing for the fifth consecutive year. During the full year 2016, domestic companies produced 25 thousand tons of roasted coffee, and stable growth in output volumes will continue in the future.
Following a decline in the volume of roasted coffee production in 2011 (-5.1% to 2010), the value began to grow: in 2012, production demonstrated a sharp increase by almost one third (+33.1%), and in the following years it was gradually growing. The minimum production volume during the past 7 years occurred in 2011, when Russian factories produced 12.9 thousand tons of roasted coffee. The maximum within the time period in question fell on 2016, when 25,005.1 tons of roasted coffee were produced in Russia – this is 7.4% more than a year earlier. Analysts at “Analytic Research Group” note that growth in roasted coffee production volumes will continue. The increase in output volumes in the category expected in 2017 is around 9.3% (to 27.3 thousand tons).
Regarding the regional structure of production, in 2016 roasted coffee was produced in 5 Russian regions. The largest share (53.3%) fell on the Northwestern Federal District, where a factory of “Orimi Trade” Group (“Jardin”, “Jockey” trademarks) is located, among other players.
Another large share in the volume of production (42.9%) was accounted for by factories located in the Central region. The Southern, Siberian and Far Eastern Federal Districts occupied less than 4% total in the overall output volume.
Compared to 2015, the regional structure of roasted coffee production underwent a number of slight changes, although the order of regions in the rating remained the same. The share of the leader, the Northwestern Federal District, decreased by 5.3 pp over the year. The volume of production in the region in physical terms amounted to 13.7 thousand tons in 2016. In the Central region, on the contrary, the volume of roasted coffee output increased and reached 9.1 thousand tons, the share having grown by 3.9 pp.
Other regions, accounting for low volumes, demonstrated growth – during the year the shares of the Southern, Siberian and Far Eastern Federal Districts increased by 0.7, 0.5 and 0.2 pp respectively.
After a slight decrease in 2015 (-0.5%), the volume of roasted coffee imports into Russia demonstrated a positive trend once again. In the full year 2016, the volume of imports reached 20,450.9 tons (+8.0% to the volume of 2015). It should be noted that virtually the whole volume of supplies falls on coffee with caffeine (99.3%, or 20,312.3 tons in physical terms), whereas the volume of imports of decaffeinated roasted coffee in 2016 was estimated at 138.6 tons.
Based on the data available on customs supplies, one can assume that the volume of imports will not demonstrate any sharp jumps in 2017. During the first 7 months, the volume of imports amounted to 11,961.4 tons for roasted coffee with caffeine and 72.2 tons for decaffeinated roasted coffee.
Major suppliers of roasted coffee with caffeine include Italy, Germany and Switzerland. They are followed by the Netherlands and Great Britain with a wide gap. Italy, which was the leader in imports of this product type during the year (in both monetary and physical terms) supplied 9,915.9 tons of coffee valued at $ 62.5 million. Compared to the previous year, the volume of supplies increased by 18 and 12.2% respectively. Just like a year earlier, Germany was second in the rating – the volume of coffee imports from this country amounted to $ 25.1 million (-4.9% to 2015). Switzerland also remained at the third position, with the import volume of $ 20.8 million. During the past year, the volume of supplies from this country declined by 11.6% in value terms. Changes took place in positions of the remaining top five countries – Great Britain, which was fourth in 2015, reduced its imports of roasted coffee with caffeine into Russia by almost a third (-30.8%) and moved to the fifth line in the rating. The volume of roasted coffee imports from the Netherlands, on the contrary, increased by 17.8% in monetary terms and reached $ 6.3 million.
It should be noted that the order of countries in the rating by import volumes in physical terms in 2016 was different: whereas the top 2 players (Italy and Germany) remained the leaders in imports in terms of tons, the third place was taken by Bulgaria. The top five countries in this regard also included Switzerland and Poland.
All in all, in comparison to the previous year, the volume of supplies of roasted coffee in physical terms increased for 33 countries and decreased for 35 countries. The most significant growth rate in 2016 was demonstrated by Lebanon (imports from this country having grown almost ten-fold, reaching 1.9 tons) and the United Arab Emirates (an increase by 9.4 times to 11.8 tons).
Decaffeinated roasted coffee was imported from 16 countries in 2016. Similar to the case of imports of this product with caffeine, European countries were the leaders in the segment. In the full year 2016, the leaders in terms of import volumes in monetary terms were Switzerland ($ 1.3 million, which is 13.7% lower than in the previous year), and Italy ($ 613.1 thousand, -5.5%). These countries accounted for 91% of the total volume of imports in monetary terms.
In physical terms, the leaders of the rating switched places: in 2016, 71.1 tons of Italian products and 50.2 tons of Swiss products were imported; even here, these countries remained at the top. The top five supplying countries also included the Netherlands (7.4 tons), Belgium (3.5 tons) and Portugal (2.3 tons). At the same time, the most significant increase in supplies was demonstrated by Brazil – whereas in 2015 imports of decaffeinated roasted coffee from this country was close to zero, in 2016 the value increased by 94 and 60 times in value and volume terms respectively, amounting to $ 1.2 thousand and 120 kilograms.
The volume of roasted coffee exports from Russia was also rather significant. In 2016, exports of coffee with caffeine amounted to 4,588.2 tons (-10.6% to 2015), or $ 25,300.5 thousand (-7.4%). During the first 7 months of 2017, 3,167.3 tons of roasted coffee with caffeine valued at $ 18,567.8 thousand were exported from Russia. Just like in case of imports, decaffeinated non-roasted coffee occupied low volumes in exports – for instance, during the first 7 months of 2017, the volume of exports of this product type amounted to only 148.7 tons, or $ 218.8 thousand.
The CIS as well as Ukraine, China and other countries serve as the main destinations for supplies of roasted coffee with caffeine. Belarus was the leader in supply volumes – in 2016, 2,328 tons of goods valued at $ 13 million were exported into the country. All in all, according to customs statistics, Russia was supplying products within the segment to 29 countries in 2015 and 30 countries in 2016.