Russian confectionery and bakery products market
Explore the Russian confectionery and bakery products market, key trends in the industry development and sweet product tendencies at the WorldFood Moscow exhibition.
In 2022, several international confectionery manufacturers, including Nestle, Mars, Mondelez and Ferrero, limited their operations in Russia by suspending sales and investments in the country. Some companies, such as Finnish Fazer and American Kellogg's, exited the Russian market entirely. As a result, Russian producers began to experience difficulties with the supply of imported raw materials, as logistic chains were disrupted, and the prices of foreign ingredients rose significantly. As a result, at the end of 2022, confectionery production decreased by 1% to 3.9 million tonnes, while imports decreased by 8.3% compared to 2021.
However, the reduction in imports and production did not strongly impact the range of confectionery products on the Russian market as local brands expanded their product lines. This is confirmed by the updated industry report for 2023.
Results for 2023 and forecast for 2024
Today, Russia ranks fifth in the world in terms of confectionery production. According to the Ministry of Agriculture of the Russian Federation, in January-November 2023, Russian confectioners produced more than 3.7 million tonnes of confectionery products. This is 3.7% more than in the same period of 2022. Growth was observed in the production of chocolate (273.7 thousand tonnes; +6.6%) and sugar products (659.7 thousand tonnes; +5.6%). The output of flour products, which account for half of the total confectionery production, also grew steadily throughout 2023. According to the Association of Confectionery Industry Enterprises (ASCOND), the volume of confectionery production in Russia at the end of 2023 increased by 2.3% and exceeded 4.115 million tonnes.
One of the main trends in the Russian confectionery industry is the growth of consumption: there is a tendency of «stress-eating» among Russians; they eat sweets because of the stress associated with the external environment. According to Sergei Nosenko, President of ASCOND and Chairman of the Board of Directors of United Confectioners Holding, the average per capita consumption of confectionery in Russia is 26.3kg. Russians mostly eat flour products like biscuits, wafers, and similar products, which account for more than half of domestic consumption. Chocolate and chocolate products, including candies, are in second place, and sugary products like marmalade, marshmallow, and caramel are in third place.
Confectionery production ranks fourth in the structure of Russian agro-industrial exports. Today, sweets from Russia are exported to 81 countries. The main buyers are China, and the Customs Union states. They account for 63% of export supplies. In 2022, exports of confectionery products will amount to 591.3 thousand tonnes, which accounts for $1.63 billion; in 2023, 626.2 thousand tonnes, summing up to $1.7 billion. Sergey Nosenko forecasts that in 2024, exports may grow by 5.9% compared to 2023 and reach 663.4 thousand tonnes, totalling $1.87bn.
Along with exports, imports of confectionery products are also growing. At the end of 2023, import supplies totalled 305.1 thousand tonnes. This is 9.5% more than in 2019. The main contribution to the increase in natural imports was made by the growth of supplies from Germany (+11.2 thousand tonnes), Belarus (+11.1 thousand tonnes), China (+7.2 thousand tonnes) and Turkey (+3.4 thousand tonnes). As for the price of imported products, it was USD 4.82 per kg in 2023, 32.2% higher than in 2019.
Top trends for 2024
Healthy sweets have been one of the main trends, gaining popularity for several years. Today, snacks with natural ingredients are becoming increasingly popular: nuts, dried fruits, and berries. In many stores, cafes and confectionery shops, you can find desserts with sugar substitutes, pastries made of oat or buckwheat flour, candies made of dates, nuts, sesame and seeds, sugar-free marmalade pastilles, dried fruit snacks, vegan desserts and other sweets that fit into the concept of healthy eating. In addition, confectioners refuse to use synthetic flavourings and colourings; instead, they use berry juices for colouring and add natural plant-based flavours.
Another trend for 2024 involves unusual flavours, shapes and textures. This year, desserts with tropical and oriental notes will be popular: papaya, mango, coconut, carambola, açaí fruit, ginger, guava, matcha green tea, Tahitian vanilla bean, Mexican chilli chocolate, saffron caramel. Confectioners will also experiment in every possible way with the decoration and shape of the sweets. One of the most popular formats will be desserts in waffle cones: now these crispy cones will be filled not only with ice cream but also with healthy snacks, marshmallows, chocolate and other delicatessens. Fans of unusual pastries will be pampered with cruffins, which resemble croissants and muffins in flavour, puffs - Japanese profiteroles with diverse fillings, cupcarons with delicate dough like cupcakes and macaroon halves with cream and other interesting desserts.
Along with the desire to try unusual sweets, consumers do not forget about traditional desserts, both in their classic version and in a new reinterpretation. The confectionery industry has even created a special term for this phenomenon - «newstalgia» (new nostalgia). That is why retro desserts are still popular: potato cake, «nuts» with boiled condensed milk, waffle tubes with cream made of boiled condensed milk, classic cakes «Napoleon», «Prague», «Fairy Tale», berry cheesecakes, other memorable desserts.
Another trend in the confectionery industry is using eco-friendly and original packaging. Today, biodegradable materials, compostable wrappers and even fully edible ingredients are often used. Confectioners are looking to reduce the use of plastic and opt for eco-friendly alternatives, while ensuring product safety and long-lasting freshness. In addition, desserts are no longer just put in plain packaging, but also in improvised boxes, hat boxes, pack of cards boxes and other unusual packaging.
The art of confectionery has not been spared by digital technologies either. For example, confectioners are actively using 3D food printer technology to create new designs and shapes, apply drawings on wafer paper, decorate desserts with impressive decorative elements, and mould three-dimensional chocolate figures and letters. In confectionery shops, innovative technologies such as robotic refrigerators, ultrasonic mixing machines for powdered ingredients and much more are appearing. Moreover, today's confectioners are also assisted by artificial intelligence: for example, Chat GPT can create a recipe for a new dessert.
Confectionery and bakery products at WorldFood Moscow
The confectionery and bakery products sector is the most popular section at the WorldFood Moscow exhibition. In 2023, the exhibition was visited by 20,115 specialists from wholesale and retail companies, distributors, representatives of catering companies, and food manufacturers. Of these, 37% (7,443) were interested in Confectionery and Bakery Products.
WorldFood Moscow exhibitors in this sector showcase sweets, chocolate and cocoa products, oriental sweets and halva, marmalade, marshmallows, pastilles, flour products, chewing gums, snacks, Christmas gifts, dietary confectionery, ingredients and food additives required for the preparation of desserts, as well as frozen sweet products and semi-finished products. In 2023, 204 companies presented their products at the exhibition.
Your company can also present its confectionery and bakery products at WorldFood Moscow 2024 and network with decision-makers, study competitors' offers, negotiate supplies, and learn about Russian market trends. Join us!
WorldFood Moscow 2024 will be held on 17-20 September at Crocus Expo IEC, Pavilion 3.
FIND OUT MORE ABOUT EXHIBITING* Sources: retail.ru, mkond.snkigb.ru, businesstat.ru, foodmarket.spb.ru, chocodel.com, sfera.fm, gdcshop.ru, joy-co.ru