Russians continue to give up expensive food, primarily meat and dairy products. There is a rise in the demand for lower cost products, such as basic vegetables, including potatoes, and other groceries. Producers are focusing on promotions while moving over to budget products.
Consumption Mainly Down in Dairy Products Segment Over Two Years
"If we assess the way consumption evolved over time using the balance-sheet approach, we will see that the decline over the past two years was mainly in the dairy products segment. This was largely due to a decrease in market volume, with imports shrinking on the back of the food embargo and a depreciating ruble while the resulting gap was not fully compensated with domestic produce,” Elena Razumova, Expert of the Analytical Center, said in her interview to The Agroinvestor magazine.
In general, food consumption patterns are changing very slowly, so the current levels will only marginally differ from what we had three to five years ago, the expert believes. But, she estimates, if we compare for example the overall food consumption levels in 2015 and in 2003, the growth was 107.6 kilos per capita. This increase was mainly driven by vegetables (+27 kg), eggs (+23 ps), fruit and berries (+22 kg), and meat (+21 kg). "Sugar, vegetable oil, potatoes, and baked goods have only grown 6.6 kg in total, so unless there is a catastrophic collapse in income, these segments are unlikely to see a drastic hike in consumption,” Ms. Razumova explained.