Coffee in Russia

PROSPECTS

Coffee suits busy schedules and a taste for indulgence

Fresh coffee registered strong retail value and volume growth in 2019, with standard fresh ground coffee posting the highest volume rise, due to greater product availability and the expansion of modern grocery retailers. The increasing numbers of specialist coffee shops and fast food outlets also supported retail growth as consumers sought to replicate their experience of premium coffee in these outlets at home.

Instant is still Russians’ favourite but fresh is more dynamic

Although instant coffee is posting decelerating volume growth and losing share in overall coffee, it is still making sales gains mostly thanks to the fact that in general coffee is a trendy drink. While instant coffee mixes are regarded as unhealthy and with high sugar content, they are favoured by the rising convenience trend, while the larger instant standard coffee category is showing signs of maturity.

Health and wellness coffee remains lukewarm

Health and wellness coffee in Russia remains undeveloped and niche, especially in fresh coffee. The main reason is that despite the popularity of coffee it is still perceived as an inherently relatively unhealthy drink.

COMPETITIVE LANDSCAPE

Consumers prefer the international aroma

Coffee sales in Russia continue to be dominated by international players such as Nestlé Russia OOO and Jacobs Douwe Egberts RUS LLC, in both volume and value terms. Nestlé Russia OOO remains the leader in coffee thanks to the high popularity of Nescafé.

Instant coffee sees an Italian recipe launched and another price drop

Instant coffee mixes continued to be led by Future Enterprises Pte Ltd and its brand MacCoffee. It strengthened its position by launching Cappuccino Di Torino as part of the MacCoffee range in 2018.

Private label continues to float to the bottom

Private label’s share in coffee declined in retail volume terms in 2019 for the fourth consecutive year as major players offered lower prices on their brands. As a consequence, consumers often chose well-known brands, which they perceive as offering higher quality for the same price.

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