Demand for organic and functional food in Russia
The rapidly growing demand for organic, functional and ecological food in Russia provides interesting business opportunities for Finnish food and beverage companies.
Nowadays, more and more people lead a healthy lifestyle and buy organic products with health promotion promises. Following European trends, Russians also tend to live a healthy lifestyle. In Russia, demand for organic food is growing despite the country’s economic and financial crisis. Russia’s organic market is in the early stage of development; however, it is growing fast.
Russia’s organic food market has grown by over 60% over the past five years. Experts estimate that future sales of organic products will reach $250 million in 2017. The organically produced food industry held a market valuation of $178 million in 2015. An increase of $116 million in total from 2010 demonstrates how Russian consumers are hungry for healthier, organic, and also ecological offering. Roughly, 3% of Russia’s population regularly choose healthier, organically sourced options. This equates to four and a half million health conscious Russians on the look for organic products – and this demand is only set to rise.
The embargo on importing European foodstuffs, imposed by Russia in 2014, is acting as an incentive for domestic production. However, there could be interesting market opportunities since there are a number of sanction free product categories. It is still early days for this young market, so imports from producers in more established markets play a vital role – imports are prevailing in the health food market.
Products with good market potential include e.g:
- organic and eco-products
- food supplements
- lactose-free, gluten-free and hypoallergic products
- jams and fruit jelly
- muesli and cereals
- sauces, seasoning
- baby food
- tea, cocoa
All these categories are sanction free and allowed to be imported to Russia.
Seizing the opportunity
There are several food/wellness fairs in Russia this autumn such as World Wood – International Food Exhibition in Moscow in September and EcoCityExpo in Moscow in November.
If you are interested in the Russian market, please contact the Finnish-Russian Chamber of Commerce (FRCC) in St. Petersburg to get advice of where to target and who to contact. Regarding Russia, it is important to be proactive and offer solutions to the market.
Project Manager, FRCC
+7 812 322 2121