Hot Drinks in Russia

Hot drinks continues its slow recovery

After retail volume declines in 2015 and 2016, hot drinks continued its slow recovery in 2018. If in 2017 the recovery was due to the improvement in consumer purchasing power, in 2018 growth was down to the increasing marketing and business activities of manufacturers.

Fresh coffee continues to register the strongest retail volume growth

Fresh coffee registered high single-digit retail volume growth in 2018 for the second consecutive year, benefiting from greater product availability due to the expansion of modern chained grocery retailers, as well as the growing numbers of specialist coffee shops and fast food outlets. A strong performance in the on-trade had a positive influence on off-trade sales by spreading the perception of fresh coffee as a premium and healthy product.

Competitive tactics vary in 2018

A clear distinction between competitive tactics was observed in the major areas of hot drinks in 2018. Low prices were effective in instant coffee and tea bags, whilst quality was emphasised in other areas.

Growing demand for rapidly prepared drinks drives new product development

The end of 2017 and the year 2018 year witnessed a large number of new product launches, especially of products which can be prepared rapidly, such as fresh ground coffee pods, tea pods, and instant coffee. Demand for these types of product is growing along with the development of coffee and tea consumption cultures.

Hot drinks to continue to grow, driven by coffee

Hot drinks is set to continue its retail volume recovery, largely driven by coffee, given the development of the fresh coffee culture. Per capita consumption of coffee in Russia is nearly half that of the average in Eastern Europe, demonstrating the potential for growth.

Files are delivered directly into your account within a few minutes of purchase.