In 2016, 61.3 thousand tons of confectionery fats were imported into Russia; in January–August 2017, imports of this product into the country increased by 21.1%. 72% in the structure of imports falls on various cocoa butter substitutes.
It should be noted that the fatty acid content of cocoa butter substitutes is completely different from that of natural cocoa butter. Equivalents, on the other hand, contain fatty acids present in cocoa butter, and can be mixed with regular cocoa butter in any proportions. Equivalents tend to cost more than substitutes. Demand for both product types is mainly formed by domestic chocolate manufacturers, and typically they are supplied directly from producers abroad.
During the past 4 full years, imports of cocoa butter substitutes into Russia decreased by 15%. A decline in imports from Malaysia served as the main factor – supplies from this country dropped by 38% during the period from 2013 to 2016.
According to estimates by “ID-Marketing”, 43.7 thousand tons of cocoa butter substitutes were imported into Russia in 2016. In January–August 2017, supplies of cocoa butter substitutes increased by 32.7%, reaching 36.7 thousand tons. It should be noted that during the same time period imports of cocoa butter substitutes grew by 62.8% in monetary terms.
Indonesia is the leader in volumes of cocoa butter substitute supplies to Russia, having accounted for 43.6% of imports in January–August 2017. Compared to the similar period of 2016, volumes of substitute imports remained at the same level.
Indonesia’s closest competitor in the segment is Malaysia. Its share in imports equalled 34.7% in January–August 2017, and supplies increased two-fold. The top three leaders among importing countries also include Sweden, volumes of which increased by 56.2% compared to the similar period of 2016.
The largest manufacturer in imports of cocoa butter substitutes in January–August 2017 was the Indonesian company “Pt. Musim Mas” (“Musim Mas Group”). Compared to January–August 2016, the volume of imports of cocoa butter substitutes by “Musim Mas” grew by 11.2%. Products by the Swedish-Danish company “AarhusKarlshamn” (“AAK”) in the segment were second by the end of the 8 months, its import volumes having increased by 58% to the similar period of the previous year. “Pt. Wilmar Nabati” (Indonesia) was third; imports by the company declined by 18.3% during the time period in question.
In the structure of cocoa butter substitute imports by types, the main volume falls on lauric-based substitutes. In January–August 2017, the share of this product type amounted to 75% of imports in volume terms. In comparison to January–August 2016, imports of lauric-based cocoa butter substitutes increased by 32.4%. Imports of non-lauric substitutes in January–August 2017 grew by 44.4%.
According to “ID-Marketing”, “Inforum” Group was the largest importer in the segment of cocoa butter substitute imports in the first 8 months of 2017. “Inforum” accounted for 12.6% of the total import volume in physical terms. “Rot Front” OJSC and “Oyl Treyd” LLC were also among the three leaders, with the shares of 11.2 and 9.4% respectively.
Imports of cocoa butter equivalents into Russia have been declining in recent years. From 2013 to 2016, supplies of this product type in physical terms dropped almost two-fold. In particular, similar to the segment of cocoa butter substitutes, it happened due to decreased imports of products by Malaysian manufacturers. By 2016, the decline in imports of cocoa butter equivalents had reached 53% since 2013.
Cocoa butter equivalent imports into Russia reached 10.8 thousand tons in 2016. In the first 8 months of 2017, imports dropped by 32.7% to the similar period of 2016, reaching 4.5 thousand tons. In monetary terms, the volume decreased by 29.7%.
Swedish products are leading in the segment of cocoa butter equivalents, their share having occupied 45.2% of imports in January–August 2017. Against the similar period of 2016, there is a 9.6% decline in supply volumes in physical terms. “AarhusKarlshamn” (“AAK”) is the leader in cocoa butter equivalent imports, having the share of 45.3% in volume terms. Its closest competitor is “IOI Group Loders Croklaan” (the Netherlands) – unlike the leader, during the first 8 months of 2017 the company increased its import volumes by 33.3%. A decline in values by “PGEO Edible Oils Sdn. Bhd.” (Malaysia) should be highlighted – in January–August 2016 products by “PGEO” occupied 30.4% of imports in physical terms, whereas in the similar period of 2017 the company’s share was as low as 6.7%.
According to “ID-Marketing”, the three largest importers of cocoa butter equivalents in the first 8 months of 2017 were “Rot Front” OJSC, “Kakaomir (Cocoa World)” LLC and “Ferrero Russia” CJSC with the shares of 35.5, 25.7 and 17.8% respectively.
According to official statistics, production of cocoa butter equivalents, improvers and substitutes in Russia amounted to 26.7 thousand tons in January–August 2017. The bulk of production falls on Belgorod region, where production facilities by “Efko” Group, a major player of the oils and fats industry, are located.
It should be noted that imports of cocoa butter (products reviewed above serving as an alternative to it) into the country have been declining as well – in 2014, volumes of imports amounted to 35.7 thousand tons, whereas in 2016 they equalled 28.9 thousand tons. However, 19.4% growth was recorded in January–August 2017, compared to the similar period of 2016. Indonesian manufacturers are leading in cocoa butter imports; in particular, “PT Asia Cocoa Indonesia” accounted for 18% of imports in 2016, and its share in January–August 2017 equalled 16.6%.
Production of chocolate and cocoa-containing goods (excluding sweetened cocoa powder) in Russia amounted to 406.5 thousand tons in January–August 2017, having grown by 5.2% to the similar period of 2016. Cocoa butter substitutes and equivalents remain a fundamental component in chocolate goods produced, allowing for lower costs and improved characteristics. In recent years, domestic production of these product types has been actively developing within Russia, which led to a decline in imports. However, domestic producers are becoming increasingly dependent on imported palm oil, which serves as a raw material for production – since 2011, imports of palm oil, including olein and stearin, had increased by 49% by 2016.
Research Company “ID-Marketing”