UKRAGROCONSULT PUBLISHES ITS FINDINGS ON THE RUSSIAN SUNFLOWER OIL AND FAT MARKET7946447
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The sector demonstrated a stable growth in 2001–2012 and is expected to keep on expanding in the next 10 years following an increase in consumer demand and personal income.
Russian margarines market
The current Russian market of margarines, including specialised fats (confectionery, bakery, culinary fats and milk fat substitutes), cacao butter substitutes and equivalents and other margarine products, constitutes one of the most swiftly developing segments of the food industry with a significant growth potential.
In 2006–2012, capacity the Russian industrial margarines market is expected to increase from 830 thousand tonnes to 1,070 thousand tonnes. The market in value terms will grow by 170% within the same period and total RUB 55.6 billion in 2012. Excessofvaluegrowth over physical indicators is associated with growing global prices of raw materials (vegetable oils).
In 2006, domestic production of specialised fats and other margarine products totalled almost 558 thousand tonnes, with a 75% increase by 974 thousand tonnes expected by the end of 2012.
According to our estimates, in 2012 Russia will produce 403 thousand tonnes of specialised fats and 571 thousand tonnes of other margarine products for the food industry. In 2012, margarine exports and imports will reach 61 and 153 thousand tonnes respectively.
Key consumers of margarines and specialised fats are confectionery, dairy, bakery, food concentrates, canned food and other food industries, public catering companies and HoReCa segments.
The largest industry holdings account for a larger part of margarines produced for further processing by different food industries. According to UkrAgroConsult estimates, key players on the Russian industrial margarine market in 2012 are EFKO (33%), SolnechnyeProdukty Group (16%), NMZhK Group (10%), Soyuz Corporation (7%), and Cargill's Russian division (11% as per projection).
According to our forecast, competition on the Russian margarines market will strengthen in 2013–2020. Russian margarine producers, including foreign capital companies, will strive to expand their market share replacing imported oil and fat products by increasing quality and depth of oil and fat processing and improving production and logistics costs.
In compliance with the global industry trend, the key growth drivers in 2020 will be new products with certain technological properties and functional food. Growth of oil and fat product sales will also rely on exports from Russia.
