Executive Summary

Aug 2018
Prospects
Low culture of cheese consumption

The culture of cheese consumption is not well developed in Kazakhstan. Considered an expensive product, Kazakhstanis are not used to consuming cheese on a regular basis or with different meals.

Some development in craft cheese production

The per capita consumption of cheese in Kazakhstan is relatively low. However, the rising interest in healthy lifestyles has seen some consumers shift towards natural and ecological products.

Cheese is for sandwiches

In Kazakhstan, cheese is mainly consumed as one ingredient of a sandwich, while the culture of consuming cheese with wine is very weak. In 2018, a wide range of brands offered cheese in pouch packaging, with each slice of cheese wrapped separately.

Competitive Landscape
Companies invest in new product and packaging development

Cheese witnessed significant new product/packaging development in 2018. For instance, Président release blue-veined French cheese in composite containers with closures.

Weak marketing of cheese

The marketing of cheese in Kazakhstan was very weak in 2018. There was very little advertising of cheese on television, the internet or social networks, and few special offers or promotions in retail stores.

Competition between craft and unpackaged cheese manufacturers

While craft cheese is at an early stage of development in Kazakhstan, there has been a positive response from consumers. The number of domestic craft cheese manufacturers is rising, while some producers have opened specialist retail stores.

Prospects
Opportunities for fresh milk development

Fresh milk has developed alongside the health and wellness trend in Kazakhstan. With a short expiration date, fresh milk is considered a more natural and purer option.

Growing demand for fortified drinking milk products

In line with the healthy lifestyle trend, consumers pay increasing attention to ingredients and product positioning. Due to higher purchasing power and higher health consciousness, the demand for drinking milk products fortified with vitamins and minerals or with other components offering potential health benefits is highest in cities and large towns.

Traditional tea consumption with full fat milk

The traditional beverage in Kazakhstan is black tea with milk, which consumers drink throughout the day. The key feature of traditional Kazakh tea is the addition of full fat milk.

Competitive Landscape
False claims for drinking milk products

In 2018, Sapa (the National Society for the Protection of Consumer Rights) organised the examination of drinking milk products by brands available in retail stores in Kazakhstan. Sapa reported that the health claims and contents displayed on packaging by Shadrinskoe (Danone Berkut), Adal (Adal AO) and Odari (Agroprodukt Asia) were false.

Active promotion and advertising of drinking milk products

There is strong competition in drinking milk products in Kazakhstan. Thus, players invest in promotions and advertising in order to differentiate brands and products and gain a competitive edge.

The emergence of affordable brands of milk alternatives

Kazakhstan has witnessed the emergence of milk alternatives, such as almond milk, coconut milk, goat milk and soy milk, since 2016. Such milk alternatives were considered niche and associated with premium prices.

Prospects
Health and wellness is the key driver

Both yoghurt and sour milk products benefit significantly from the health and wellness trend in Kazakhstan. Health attributes have become a key factor in the purchasing decisions of consumers.

Convenience of consumption

Consumers have started to give preference to brands of yoghurt and sour milk products that offer convenience in terms of consumption at home and on the go. Thus, convenience and portable packaging has become a key criterion.

Mood improving products

Manufacturers of yoghurt started to focus consumers’ attention on mental health in 2018. The health and wellness trend contributes to the growing number of fortified yoghurt and sour milk products offering benefits for health.

Competitive Landscape
Communication with consumers is a key strategy

Manufacturers of yoghurt and sour milk products communicate well with consumers in Kazakhstan. In 2018, companies concentrated on transparency of production.

Active new product development

The category witnesses regular new product development in Kazakhstan. Manufacturers offered new flavours and varieties of yoghurt and sour milk products in 2018.

Frequent advertising and promotion of yoghurt and sour milk products

In 2018, Danone Berkut promoted Rastishka in collaboration with the Shazam entertainment application. Using the app, children were encouraged to take photos featuring the packaging and create “selfies”.

Prospects
Opportunities lie in healthy and on-the-go snacks

In large urban areas, where consumers lead hectic lifestyles, there is a growing demand for on-the-go snacking products. This provides opportunities for manufacturers of chilled snacks and chilled and shelf stable desserts.

The emergence of convenience packaging for curd

In line with the growing demand for convenience of consumption, Food Master presented curd in pouches with multiple closure effect under Président in 2017. Other curd manufacturers followed suit in 2018.

Strong focus on children’s nutrition

Glazirovanniy syrok, a popular and traditional type of chilled snack in Kazakhstan, usually has a cottage cheese texture and comes in a rectangular form coated in chocolate. The popularity of glazirovanniy syrok reflects a strong focus on children in chilled snacks.

Competitive Landscape
Significant new product development

“Other” dairy manufacturers tried to attract consumers through new product developments and launches in 2018. For instance, Sterilgarda Alimenti released Sterilgarda chilled desserts.

New regulation is set to bring changes

From early 2019, a new Eurasian Economic Union regulation is expected to impact product positioning and the performance of manufacturers. The regulation obliges manufacturers to state if a product contains a dairy fat substitute or vegetable oils.

Challenges for domestic manufacturers

There are significant barriers to local companies trying to compete with international companies. Domestic producers of “other” dairy face challenges in terms of the availability of local raw ingredients.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Kazakhstan with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Dairy industry in Kazakhstan, our research will save you time and money while empowering you to make informed, profitable decisions.

The Dairy in Kazakhstan market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Dairy in Kazakhstan?
  • What are the major brands in Kazakhstan?
  • How has the economic downturn impacted sales performance given its staple food status?
  • Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
  • How are volatile farmgate prices for milk impacting retail prices and sales performance?

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This industry report originates from Passport, our Packaged Food market research database.

Butter and Spreads

Cheese

Drinking Milk Products

Other Dairy

Yoghurt and Sour Milk Products

Packaged Food in Kazakhstan - Industry Overview

EXECUTIVE SUMMARY

Packaged food volume sales increase due to a number of factors
Single portions and on-the-go snacking develop in 2018
Modern grocery retailers expand in large towns
Foreign manufacturers continue to hold significant shares of packaged food in 2018
The growing healthy lifestyle trend to guide the development of packaged food

FOODSERVICE

Sales to Foodservice
The growing popularity of celebrating various occasions outside of the home has a positive impact on foodservice development
Millennials one of the main consumer groups contributing to growth in the fast casual trend in foodservice
Domestic manufacturers lead foodservice sales

CATEGORY DATA

Table 1 Foodservice Sales of Packaged Food by Category: Volume 2013-2018
Table 2 Foodservice Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 3 Forecast Foodservice Sales of Packaged Food by Category: Volume 2018-2023
Table 4 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2018-2023

MARKET DATA

Table 5 Sales of Packaged Food by Category: Volume 2013-2018
Table 6 Sales of Packaged Food by Category: Value 2013-2018
Table 7 Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 8 Sales of Packaged Food by Category: % Value Growth 2013-2018
Table 9 GBO Company Shares of Packaged Food: % Value 2014-2018
Table 10 NBO Company Shares of Packaged Food: % Value 2014-2018
Table 11 LBN Brand Shares of Packaged Food: % Value 2015-2018
Table 12 Distribution of Packaged Food by Format: % Value 2013-2018
Table 13 Distribution of Packaged Food by Format and Category: % Value 2018
Table 14 Forecast Sales of Packaged Food by Category: Volume 2018-2023
Table 15 Forecast Sales of Packaged Food by Category: Value 2018-2023
Table 16 Forecast Sales of Packaged Food by Category: % Volume Growth 2018-2023
Table 17 Forecast Sales of Packaged Food by Category: % Value Growth 2018-2023

DEFINITIONS

SOURCES

Summary 1 Research Sources

Packaged Food in Kazakhstan - Industry Overview

EXECUTIVE SUMMARY

Time-poor consumers, higher living standards and an increase in Westernisation boosts results in 2019 
Players respond to the growing health and wellness trend, boosting sales across multiple packaged food options 
Foreign manufacturers benefit from established offerings, while local players respond to the taste preferences of consumers 
Modern grocery retailers are increasing share year-on-year as consumers appreciate the high service levels and a wide variety of goods 
The forecast looks bright for packaged food, which will benefit from the recovering economy

FOODSERVICE

Sales to Foodservice
Consumers eating out more frequently, especially to celebrate occasions, boosting packaged food sales to foodservice
Domestic manufacturers lead foodservice due to their strong production capacity for essential products
An increase in purchasing power over the forecast period will see consumers choosing to eat out more often, boosting sales to foodservice
Category Data
Table 18 Foodservice Sales of Packaged Food by Category: Volume 2014-2019
Table 19 Foodservice Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 20 Forecast Foodservice Sales of Packaged Food by Category: Volume 2019-2024
Table 21 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2019-2024

MARKET DATA

Table 22 Sales of Packaged Food by Category: Volume 2014-2019
Table 23 Sales of Packaged Food by Category: Value 2014-2019
Table 24 Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 25 Sales of Packaged Food by Category: % Value Growth 2014-2019
Table 26 GBO Company Shares of Packaged Food: % Value 2015-2019
Table 27 NBO Company Shares of Packaged Food: % Value 2015-2019
Table 28 LBN Brand Shares of Packaged Food: % Value 2016-2019
Table 29 Distribution of Packaged Food by Format: % Value 2014-2019
Table 30 Distribution of Packaged Food by Format and Category: % Value 2019
Table 31 Forecast Sales of Packaged Food by Category: Volume 2019-2024
Table 32 Forecast Sales of Packaged Food by Category: Value 2019-2024
Table 33 Forecast Sales of Packaged Food by Category: % Volume Growth 2019-2024
Table 34 Forecast Sales of Packaged Food by Category: % Value Growth 2019-2024

DEFINITIONS

SOURCES

Summary 2 Research Sources