Confectionery in Russia may fall in price by 15–20% in 2023. This forecast was announced to Izvestia by the founder of the All-Russian network of online confectionery Family Dessert Dmitry Duran on Thursday, September 8.
“The confectionery market is gradually getting rid of the dollar component when pricing. The national currency, however, maintains its stability and in 2023 there is every chance that the picture will not change. Therefore, ruble prices on the confectionery market will be practically unaffected by currency fluctuations,” the expert noted.
According to him, a further transition to settlements in national currencies will also contribute to the stabilization of prices for confectionery.
In Russia, there is a gradual import substitution in the food retail sector, including in the production of sweets and confectionery, Dmitry Duran said.
“Moreover, it was in this area that the share of imports reached 80% – that is how much space on the shelves of chain retailers was occupied by Western brands. Now there is an active replacement of foreign brands with Russian ones and a very significant growth in the sphere of Russian mini-productions,” he said.
The creator of the confectionery network noted that Russian products are significantly inferior to Western ones in price, but not in quality. Over the past year, hundreds of small-scale confectionery production facilities have opened in the Russian Federation. And the share of foreign confectionery brands on store shelves may drop to 30-40%, the expert believes.
September 2businessman” reported that the Ministry of Agriculture, as counter-sanctions, is considering the possibility of a complete ban on imports from the European Union of vegetable fats used in confectionery production. Later, the Ministry of Agriculture stated that no decisions had been made to ban the supply of oil and fat raw materials from Europe. The ministry noted that they are working on possible supply channels for both imported raw materials and Russian analogues, as well as the possibility of developing the production of certain types of ingredients in Russia in order to avoid dependence on imports and logistics costs.
Doctor of Economics, former Deputy Minister of Agriculture of Russia Leonid Kholod suggested that a large increase in prices for confectionery products should not be expected. According to him, commonly used vegetable fats from Europe for the confectionery industry are not imported to the Russian Federation, only firms themselves can supply them for their own production.
#Confectionery #Russia #fall #price