Health and Wellness in Russia

Health and Wellness in Russia

EXECUTIVE SUMMARY

COVID-19 impact on health and wellness

COVID-19 country impact

Company response

Retailing shift

Foodservice vs retail split

What next for health and wellness?

MARKET DATA

Table 1 Sales of Health and Wellness by Type: Value 2015-2020
Table 2 Sales of Health and Wellness by Type: % Value Growth 2015-2020
Table 3 Sales of Health and Wellness by Category: Value 2015-2020
Table 4 Sales of Health and Wellness by Category: % Value Growth 2015-2020
Table 5 Sales of Health and Wellness by Prime Positioning: Value 2015-2020
Table 6 Sales of Health and Wellness by Prime Positioning: % Value Growth 2015-2020
Table 7 NBO Company Shares of Health and Wellness: % Value 2016-2020
Table 8 LBN Brand Shares of Health and Wellness: % Value 2017-2020
Table 9 Distribution of Health and Wellness by Format: % Value 2015-2020
Table 10 Distribution of Health and Wellness by Format and Category: % Value 2020
Table 11 Forecast Sales of Health and Wellness by Type: Value 2020-2025
Table 12 Forecast Sales of Health and Wellness by Type: % Value Growth 2020-2025
Table 13 Forecast Sales of Health and Wellness by Category: Value 2020-2025
Table 14 Forecast Sales of Health and Wellness by Category: % Value Growth 2020-2025
Table 15 Forecast Sales of Health and Wellness by Prime Positioning: Value 2020-2025
Table 16 Forecast Sales of Health and Wellness by Prime Positioning: % Value Growth 2020-2025

GLOBAL MACROECONOMIC ENVIRONMENT

GLOBAL INDUSTRY ENVIRONMENT

DISCLAIMER

SOURCES

Summary 1 Research Sources

Better For You Beverages in Russia

KEY DATA FINDINGS

2020 IMPACT

Lower disposable incomes lead to slowdown in rapid growth of better for you beverages in 2020

COVID-19 prompts strong shift to home consumption and a preference for larger pack sizes in 2020

Reduced caffeine soft drinks remains underdeveloped in 2020

RECOVERY AND OPPORTUNITIES

BFY reduced sugar soft drinks leads growth prospects as per capita consumption of BFY beverages remains low

Further growth for e-commerce following COVID-19 pandemic

Increased price sensitivity set to drive promotional activity and discounts over the forecast period

CATEGORY DATA

Table 17 Sales of BFY Beverages by Category: Value 2015-2020
Table 18 Sales of BFY Beverages by Category: % Value Growth 2015-2020
Table 19 NBO Company Shares of BFY Beverages: % Value 2016-2020
Table 20 LBN Brand Shares of BFY Beverages: % Value 2017-2020
Table 21 Distribution of BFY Beverages by Format: % Value 2015-2020
Table 22 Forecast Sales of BFY Beverages by Category: Value 2020-2025
Table 23 Forecast Sales of BFY Beverages by Category: % Value Growth 2020-2025

Fortified/Functional Beverages in Russia

KEY DATA FINDINGS

2020 IMPACT

COVID-19 hits demand for on-the-go and impulse purchases of fortified/functional beverages as consumers stay at home in 2020

Price becomes key driver of purchasing behaviour in 2020

Multinationals maintain lead in fortified/functional beverages in 2020 despite fall in value share for Coca-Cola Refreshments ZAO

RECOVERY AND OPPORTUNITIES

Slower growth for fortified/functional beverages as consumers remain cautious over spending

E-commerce set to remain fastest-growing channel as on-the-go consumption returns to drive retail sales

Players set to focus on positioning linked to health and wellness benefits

CATEGORY DATA

Table 24 Sales of Fortified/Functional Beverages by Category: Value 2015-2020
Table 25 Sales of Fortified/Functional Beverages by Category: % Value Growth 2015-2020
Table 26 Key Functional Ingredients in Fortified/Functional Bottled Water: % Value 2015-2020
Table 27 Key Functional Ingredients in Fortified/Functional 100% Juice: % Value 2015-2020
Table 28 Key Functional Ingredients in Fortified/Functional Juice Drinks (up to 24% juice): % Value 2015-2020
Table 29 Key Functional Ingredients in Fortified/Functional Nectars (25-99% juice): % Value 2015-2020
Table 30 NBO Company Shares of Fortified/Functional Beverages: % Value 2016-2020
Table 31 LBN Brand Shares of Fortified/Functional Beverages: % Value 2017-2020
Table 32 Distribution of Fortified/Functional Beverages by Format: % Value 2015-2020
Table 33 Forecast Sales of Fortified/Functional Beverages by Category: Value 2020-2025
Table 34 Forecast Sales of Fortified/Functional Beverages by Category: % Value Growth 2020-2025

Naturally Healthy Beverages in Russia

KEY DATA FINDINGS

2020 IMPACT

NH tea drives sales of NH hot drinks amid slower overall growth for naturally healthy beverages in 2020

Economic and financial uncertainty hit demand for NH fruit/vegetable juice in 2020

Value share growth for leading players in 2020 amid continued fragmentation

RECOVERY AND OPPORTUNITIES

Focus on health and wellness set to drive demand for naturally healthy beverages

NH fruit/herbal tea set to benefit from status as a healthy and non-caffeinated alternative

Strong focus on price will remain key to continued growth over the forecast period

CATEGORY DATA

Table 35 Sales of NH Beverages by Category: Value 2015-2020
Table 36 Sales of NH Beverages by Category: % Value Growth 2015-2020
Table 37 NBO Company Shares of NH Beverages: % Value 2016-2020
Table 38 LBN Brand Shares of NH Beverages: % Value 2017-2020
Table 39 Distribution of NH Beverages by Format: % Value 2015-2020
Table 40 Forecast Sales of NH Beverages by Category: Value 2020-2025
Table 41 Forecast Sales of NH Beverages by Category: % Value Growth 2020-2025

Organic Beverages in Russia

KEY DATA FINDINGS

2020 IMPACT

High unit prices continue to present major barrier to growth in organic beverages in 2020

New legislation on labelling for organic products enters into force in 2020

Biotta AG retains lead in 2020 as limited growth opportunities and complex regulatory process deter domestic producers

RECOVERY AND OPPORTUNITIES

Organic beverages set for further decline as consumers remain loyal to familiar and lower-priced products

Modern retailing set to be the main distribution channel for organic beverages

Organic beverages unlikely to achieve mass appeal over the forecast period

CATEGORY DATA

Table 42 Sales of Organic Beverages by Category: Value 2015-2020
Table 43 Sales of Organic Beverages by Category: % Value Growth 2015-2020
Table 44 NBO Company Shares of Organic Beverages: % Value 2016-2020
Table 45 LBN Brand Shares of Organic Beverages: % Value 2017-2020
Table 46 Distribution of Organic Beverages by Format: % Value 2015-2020
Table 47 Forecast Sales of Organic Beverages by Category: Value 2020-2025
Table 48 Forecast Sales of Organic Beverages by Category: % Value Growth 2020-2025

Better For You Packaged Food in Russia

KEY DATA FINDINGS

2020 IMPACT

Demand for healthy treats due to COVID-19 drives sales of BFY reduced sugar packaged food in 2020

Growth in home cooking drives demand for reduced fat dairy and reduced fat sauces, dressings and condiments in 2020

Mars and Mondelez maintain lead as smaller players keep pace with new product development in 2020

RECOVERY AND OPPORTUNITIES

More natural ingredients and new technologies set to drive development of BFY reduced sugar packaged food

Growth for reduced fat dairy as reduced fat sauces, dressings and condiments struggles with unhealthy image

Few growth prospects for better for you reduced salt products despite early exploration of a labelling standard

CATEGORY DATA

Table 49 Sales of BFY Packaged Food by Category: Value 2015-2020
Table 50 Sales of BFY Packaged Food by Category: % Value Growth 2015-2020
Table 51 NBO Company Shares of BFY Packaged Food: % Value 2016-2020
Table 52 LBN Brand Shares of BFY Packaged Food: % Value 2017-2020
Table 53 Distribution of BFY Packaged Food by Format: % Value 2015-2020
Table 54 Forecast Sales of BFY Packaged Food by Category: Value 2020-2025
Table 55 Forecast Sales of BFY Packaged Food by Category: % Value Growth 2020-2025

Free From in Russia

KEY DATA FINDINGS

2020 IMPACT

Free from dairy continues to drive sales of free from packaged food in 2020 despite slowdown due to more cautious spending

Slower growth in free from gluten baby food as parents prepare more meals at home in 2020

Sady Pridonya closes in on leader Hero Rus due to continued rise of free from dairy in 2020

RECOVERY AND OPPORTUNITIES

Free from dairy milk set to lead value sales growth over the forecast period

Free from meat set to remain a niche area over the forecast period despite new investment

Domestic player Sapsan set to enter free from gluten baked goods with promise of high quality at low prices

CATEGORY DATA

Table 56 Sales of Free From by Category: Value 2015-2020
Table 57 Sales of Free From by Category: % Value Growth 2015-2020
Table 58 NBO Company Shares of Free From: % Value 2016-2020
Table 59 LBN Brand Shares of Free From: % Value 2017-2020
Table 60 Distribution of Free From by Format: % Value 2015-2020
Table 61 Forecast Sales of Free From by Category: Value 2020-2025
Table 62 Forecast Sales of Free From by Category: % Value Growth 2020-2025

Fortified/Functional Packaged Food in Russia

KEY DATA FINDINGS

2020 IMPACT

FF yoghurt drives growth in FF dairy as consumers favour more natural products in 2020

Switch to breastfeeding, a declining birth rate and pressure on incomes hinder growth of FF baby food in 2020

Livingood from Makfa OAO helps to drive growth of FF pasta in 2020

RECOVERY AND OPPORTUNITIES

Low but steady value growth for FF dairy as consumers shift towards FF milk and yoghurt and FF fromage frais and quark

Gradual recovery for FF milk formula and FF prepared baby food despite economic headwinds

FF chocolate confectionery will struggle to shake off perception as an unhealthy product

CATEGORY DATA

Table 63 Sales of Fortified/Functional Packaged Food by Category: Value 2015-2020
Table 64 Sales of Fortified/Functional Packaged Food by Category: % Value Growth 2015-2020
Table 65 Key Functional Ingredients in Fortified/Functional Breakfast Cereals: % Value 2015-2020
Table 66 Key Functional Ingredients in Fortified/Functional Bread: % Value 2015-2020
Table 67 Key Functional Ingredients in Fortified/Functional Sugar Confectionery: % Value 2015-2020
Table 68 Key Functional Ingredients in Fortified/Functional Sweet Biscuits: % Value 2015-2020
Table 69 Sales of Fortified/Functional Yoghurt by Standard Fat vs Reduced Fat: % Value 2015-2020
Table 70 NBO Company Shares of Fortified/Functional Packaged Food: % Value 2016-2020
Table 71 LBN Brand Shares of Fortified/Functional Packaged Food: % Value 2017-2020
Table 72 LBN Brand Shares of Fortified/Functional Bread: % Value 2017-2020
Table 73 Distribution of Fortified/Functional Packaged Food by Format: % Value 2015-2020
Table 74 Forecast Sales of Fortified/Functional Packaged Food by Category: Value 2020-2025
Table 75 Forecast Sales of Fortified/Functional Packaged Food by Category: % Value Growth 2020-2025

Naturally Healthy Packaged Food in Russia

KEY DATA FINDINGS

2020 IMPACT

NH dairy drives stronger growth for naturally healthy packaged food in 2020

Sales of NH high fibre breakfast cereals boosted by home seclusion and greater at-home consumption in 2020

Danone Russia maintains lead as smaller players expand presence across naturally healthy packaged food in 2020

RECOVERY AND OPPORTUNITIES

Short-lived growth for NH dairy as consumers revert to yoghurt-based products

Innovation and new product development set to support NH high fibre breakfast cereals over the forecast period

Exchange rate volatility set to impact growth potential of NH fruit and nut bars and NH nuts, seeds and trail mixes

CATEGORY DATA

Table 76 Sales of NH Packaged Food by Category: Value 2015-2020
Table 77 Sales of NH Packaged Food by Category: % Value Growth 2015-2020
Table 78 NBO Company Shares of NH Packaged Food: % Value 2016-2020
Table 79 LBN Brand Shares of NH Packaged Food: % Value 2017-2020
Table 80 Distribution of NH Packaged Food by Format: % Value 2015-2020
Table 81 Forecast Sales of NH Packaged Food by Category: Value 2020-2025
Table 82 Forecast Sales of NH Packaged Food by Category: % Value Growth 2020-2025

Organic Packaged Food in Russia

KEY DATA FINDINGS

2020 IMPACT

Organic packaged food records steady growth while remaining a niche area in 2020

New legislation aims to boost production and status of organic products in Russia in 2020

Confusion remains over the difference between organic and environmentally friendly in 2020

RECOVERY AND OPPORTUNITIES

Legislation and consumer education aim to drive further growth in organic packaged food over the forecast period

Growing retail presence for organic packaged food

Focus on both local production and imports to boost growth of organic products over the forecast period

CATEGORY DATA

Table 83 Sales of Organic Packaged Food by Category: Value 2015-2020
Table 84 Sales of Organic Packaged Food by Category: % Value Growth 2016-2020
Table 85 NBO Company Shares of Organic Packaged Food: % Value 2016-2020
Table 86 LBN Brand Shares of Organic Packaged Food: % Value 2017-2020
Table 87 Distribution of Organic Packaged Food by Format: % Value 2015-2020
Table 88 Forecast Sales of Organic Packaged Food by Category: Value 2020-2025
Table 89 Forecast Sales of Organic Packaged Food by Category: % Value Growth 2020-2025

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