International Food Exhibition
17 – 20 September 2018 • Expocentre, Moscow, Russia

Here’s why Russia is your next food & drink market

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Don't let sanctions get you down - Russia is still a massive market full of potential for international food and drink exporters. Need convincing? Check out these five big reasons why Russia should be your next market.
Here’s why Russia is your next food & drink market
Even though sanctions have been ongoing for three years now, Russia remains a massive market for international food and drink producers. With the embargo restructuring the shape of Russia’s food sector, amazing opportunities have emerged for suppliers.
 
Considering Russia as your next export destination? Here are five reasons why you should.
 

5 big reasons why Russia remains an amazing food & drink market

 
Russian food & drink imports total in the billions
 
Import levels have dropped off. That’s a fact. Crucially, however, Russia is still amongst the top five food and drink importers in the world. In 2016, for instance, Russia imported foodstuffs worth $25 billion.
 
Indeed, not every food category was banned from export by sanctioned states, which means producers in those countries still have access to the huge Russian market. For instance, Italian wines, German chocolate, Dutch organic coffee, and much more is still in demand throughout Russia.
 
Sanctions create market gaps for non-sanctioned states
 
Fruits and vegetables, meats, seafood, and milk and dairy products from the EU, US, Australia, Norway, and Canada are banned in Russia. With those nations’ goods off the table, though, this has opened up exports for non-sanctioned countries and their producers.
 
Countries from the Middle East, Africa and Asia have enjoyed significant boosts in Russian trade, thanks to Russia slapping the aforementioned exporting countries with big bans.
 
Argentina and Brazil, two massive meat suppliers, have grown their meat exports by 25% and 10% respectively what with EU and US beef, pork, and poultry being restricted. Over in Asia, Pakistan has bumped exports of various fruits and vegetables by 14%.
 
You can find all about the sanctions in our free 14-page market guide. Click here to download your copy.
 
Food & drink markets rarely come bigger than Russia
 
Roughly 53% of Russia’s total retail sales are covered by food and drink spending. In total, the value of food and drink throughout the nation clocks in at roughly $150 billion annually, indicating plenty of cash to spend on food – despite Russia’s recent economic wobbles.
 
144 million people live and work, and eat and drink, across the Russian Federation. What’s more, the population has been growing at a steady rate since 2010. As the population grows, so does the need to feed.
 
Outside of pure sales, Russia is the world’s 12th largest economy, with a GDP of approximately $1.2 trillion. While it’s true its economy has dipped in recent years, growth is starting to come back. According to Russia’s Federal Statistics Office, the economy has grown 2.5% in 2017 so far.
 
A major food production machinery market
 
Outside of pure commodity exports, the market for food processing and packaging equipment and machinery is truly massive. Imports of such equipment have doubled over the past 10 years. 
 
Globally, Russia is the eight largest market for packaged food and drink items, with trade volumes adding up to 27.5 million tons of food, and 26 billion litres for bottled beverages, a year.
 
Demand for packaged products is expected to grow 7.7% until 2020, bringing with it an increased demand for top quality, internationally sourced, packaging and production equipment.
 
Niche export sectors emerge as Russian consumer habits change
 
Societally and economically, Russia is currently in flux – and many Russians are turning towards product groups that have, traditionally, not been popular nationwide (until now).
 
For instance, healthy, organic options are starting to bed into Russian eating habits. 3% of Russia’s population regularly consumes organic food following market growth of 60% over the past five years.
 
Frozen food, in part down to tighter household budgets during Russia’s recession years and busier lifestyles, is enjoying increased sales too.
 
One of the biggest sectors that might be unknown to the larger global community is halal food.  20 million Muslims live in Russia, creating a domestic halal market worth around $1.1 billion.
 
There are plenty of emerging sub-sectors waiting to be filled by international produce in Russia. Can you supply them?
 

WorldFood Moscow: Your gateway to Russia’s food & drink buyers

 
Whether you are an exporter looking to get your products into Russia, you’re a supplier of food production equipment, or you just want to check out your opportunities available in person, you should be at WorldFood Moscow.
 
As Russia’s premier food and drink trade show, exhibitors and visitors alike can meet and do business with thousands of Russian and international buyers, distributors, producers, and importers.
 
To secure the best space at next year’s show, click here to book your stand.
 
Need more information? Contact us now.