Following years of economic turmoil, consumers in the 11 countries of the Commonwealth of Independent States (CIS) are seeing growing incomes once again. With hot drinks spending levels unusually high in the CIS states, great opportunities exist in categories such as instant coffee and premium teas as consumers move look for something new out of their hot beverages.
The 11 members of the Commonwealth of Independent States (CIS) have a great number of features in common with each other that they do not share with their neighbours, or even with the other post-communist states of Eastern Europe. The most important of these are high levels of black tea consumption and a significant degree of Russian economic influence.
Standard black tea has been the main form of hot drinks consumption in the region for a long time, with several countries in the region having some of the highest consumption levels in the world. They are led by Russia, the world’s largest market for black tea. However, trends including interest in health and wellness, a growing coffee shop culture, and a simple desire for something new are boosting alternative forms of tea and coffee.
Russian hot drinks companies such as Orimi Trade and Mai Kompanya exert significant influence not only in Russia, but in much of the CIS. These companies, which rose to prominence focusing on black tea, are now faced with the need to pivot to new forms of hot drinks to compensate for changing consumption patterns in Russia and the wider region. The growing degree of influence of global companies such as JDE and Unilever will also pose a significant challenge to their share.
Hot drinks growth will be robust over the forecast period in every CIS state except for recession-ravaged Ukraine. Black tea will still continue to grow thanks to economic and population growth in Central Asia, but the more dynamic growth will be in coffee and new forms of tea, including value-added forms of black tea that cater to consumers’ desire for novelty.
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