Consumer demand for packaged foods boosts Russian specialty fats market

By Caroline Scott-Thomas

- Last updated on GMT

Related tags: Fat

Packaged food demand boosts Russian specialty fats market
Russia’s specialty fats market has rocketed in the past decade, driven by increasing consumer demand for processed foods and higher levels of disposable income – and the sector is expected to continue growing over the coming ten years, according to a new report from UkrAgroConsult.

The market research firm said that production of sunflower oil in Russia more than doubled from 2001 to 2011, peaking at 2.8m tonnes in 2009, while alternative oils, including rapeseed, soybean and linseed oils, multiplied more than six times to reach 507,000 tonnes by the end of 2011.

Meanwhile, the specialty fats and oils market grew 30% in just the last five years, from 2006 to 2011.

“The market of special purpose fats and margarine products is one of the most dynamic sectors of the oils and fats industry in Russia,”​ the report said. “This includes confectionary fats, cocoa butter substitutes, milk fat substitutes, fats for bakery and pastry, multipurpose food fats, and margarines designed for industrial processing and application.”

It said that key players in this market include Russian producers like EFKO, NMZhK, Solnechnye Produkty, and Soyuz, as well as Cargill’s Russian arm.

Mayonnaise

Russia is the world’s largest consumer of mayonnaise in the world, consuming 38% of the total – about 5.3 kg per person annually.

The market researcher said that as incomes grow, it expects this amount to increase another 13% by 2020, while growth in value terms may increase as much as 65%.

“The competition will rise and force large manufacturers towards further consolidation, better quality and a more diversified range of products,”​ it said, saying that the four leading producers each control at least 10% of the market.

“Stable growth of consumer incomes and the population itself could speed the growth rate of the mayonnaise market both in volume and value by increasing per capita and overall consumption.Otherwise we expect moderate growth rates till 2020 along with the population’s buying capacity in general.”

Related topics: Market Trends, Fats & oils

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