R.I.M. Porter Novelli

Export of Russian confectionery products sets a new record

17.05.2019

At year-end 2018, the export of confectionery products from the Russian Federation set up a new record in money and in kind. The scope of supply from Russia increased by 16.2% to reach 530,250 tons to the amount of US$1.143 bln (growth by 8.9%). These data were presented by Association of Confectionery Manufacturers “ASKOND” at the round table in Moscow on May 16.
Export of the Russian confectionery products started to grow rapidly from the beginning of 2016, and the record in the scope of confectionery supply was set up for the first time at that year-end. In 2017, export increased by 9% again, thus beating the previous year record. In 2018, the record was renewed.
Chocolate items formed the export basis. The share of sales amounted to 55% or US$626.1 mln. In kind, this indicator constituted 44% (232.300 tons). In 2018, the supply of chocolate products increase by 24.2% as compared to 2017. This is the highest value in terms of growth rates among all confectionery being exported. Moreover, the growth rate of Russian chocolate export has resulted in a situation where export share today is 30% of all chocolate confectionery manufactured in Russia, while some years ago this figure was about 25%.
Export of pastry in 2018 increased by 14.9% (228,800 tons), including 12.7% to far-abroad countries, and 15.4% to the CIS countries. The sales also rise due to expanded export to the markets that are relatively new to the Russian players.
The geography of supplies of the Russian confectionery products comprises about 70 destinations: from Singapore and Australia to Canada. Throughout all time, near abroad countries remained the major buyers of the Russian confectionery: Kazakhstan, Belarus, Azerbaijan, and Central Asian countries. The share of Kazakhstan in the total export volume was 28%; however, supply rates to this country ceded ground to China and constituted 23%.
The top 10 foreign buyers of Russian chocolate included United Arab Emirates and Saudi Arabia. In 2018, these countries purchased over 9,200 tons, which is respectively 5 to 9 times more than in 2015. China has become the most dynamically growing destination for the Russian export since 2016. In 2018, we exported 52,300 tons of confectionery products, which is by 35.6% more than the previous year. The share of China made 10% of supplies.
“The increased popularity of the Russian confectionery products is promoted by the attractive quality-to-price ratio, wide range of products, ability to comply with the demands and tastes of the target audiences in countries with various cultures of consumption,” comments Vyacheslav Lashmankin, Executive Director of Askond. “Moreover, confectionery sector today is one of the drivers of the Russian economy and non-resource exports, because we supply advance processing products and operate as one of the largest consumers of domestic products, i.e. milk, butter, sugar, flower, etc.).”
Founded on December 30, 1996, Association of Confectionery Manufacturers “ASKOND” is one of the oldest and the most authoritative professional non-commercial organizations. Today, ASKOND includes more than 50 largest confectionery enterprises, which account for about 85% of confectionery manufacture in the chocolate segment and more than 65% of the total volume of confectionery production in the territory of the Russian Federation.
R.I.M Agency has been providing all-round support for Askond since 2019.

Participants of the round table organized by the Association of Confectionery Manufacturers