Hike in demand for indulgence fuels Russian confectionery growth

By Jane Byrne

- Last updated on GMT

Related tags: Russia, Confectionery, New product development, Euromonitor international

Indulgence products are gaining in appeal in Russia due to increasing disposable income among the middle classes, notes Euromonitor, and it reports a volume growth in confectionery products of 1.2 per cent last year.

This growth, said the market specialists, represents a moderate improvement over the performance registered in 2009, when sales grew by a mere 0.4 per cent in retail volume.

However, the market researchers note that an obstacle to further expansion of confectionery sales in Russia is the relatively low birth rate in the country, which is “affecting demand for traditionally children-oriented products such as boiled sweets and liquorice.”

According to Euromonitor International's countries and consumers' database, birth rates in Russia stood at 12.4 per '000 inhabitants in 2009, compared with the 19.9 per '000 inhabitants average at world level.

Pastilles, gums, jellies and chews was the most dynamic product area in 2010, recording 10 per cent growth in current value terms and seeing 2 per cent volume growth to reach almost 18,000 tonnes.

Jellies, in particular fuelled this growth, as they are “very popular in Russia and often consumed with tea.”

“After stagnation in 2009, gum saw volume growth driven by new product development from the leading players in 2010.

Young Russian people who are active gum consumers view its consumption as a part of their image. Furthermore, they are open to novelties and very keen to try new products, such as new Eclipse Karma gum with cardamom, recently introduced by Wrigley,”​ note the analysts.

Euromonitor reports that a hike in chocolate consumption in volume last year was significant in comparison with 2009: “There was retail volume growth of 2 per cent in 2010 in contrast to the stagnation recorded in 2009. This indicates that chocolate confectionery is moving into recovery, a trend that is likely to continue in 2011 and 2012.”

Related topics: Markets, Emerging Markets

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