Confectionery products are getting cheaper without compromising quality

19 april 2018 | RBC-TV

RBC journalists note that Russians are eating more and more confectionery products. Currently, the market is growing and the prices of pastries and sweets are falling, will this economic situation persist? Analytical Center expert Elena Razumova tried to answer this and other questions on RBC-TV.

Elena Razumova
Elena Razumova
Department for Expert Analytics

Market players got worried when the Ministry for Trade of Russia suggested raising import tariffs on equipment for production of confectionery products. "The share of imported confectionery equipment is very high," Elena Razumova agreed, "However, the Ministry for Trade is probably going to follow the logic of the manufacturers, imposing high import tariffs only on equipment for which there are Russian equivalents while gradually imposing tariffs on other types of confectionery equipment."

On the whole, the market has been demonstrating sustained growth. Statistics suggest confectionery sales are on the rise in Russia and this is not just a result of increase in exports. "Thanks to active growth of beetroot production, the price of sugar has gone down. In addition, the butter and fat segment has seen some success recently and those products are also used on confectionery and pastry production," the expert summed up. "Both these factors are kind of propping up confectionery production financially."

As for the decline in the prices of sweets that we've been seeing recently, the expert sees several reasons for that: more ingredients are being used, they are more accessible, new plants have been launched, competition has increased. And cheaper does not always mean poorer quality or harmful products. "Even palm oil can be expensive and high quality," Ms Razumova stressed.

Source: RBC TV