Industry experts indicate that Russian cheese industry demonstrates significant growth

Despite political sanctions (import substitution), the domestic cheese market, which showed a slight increase in apparent consumption in 2018, according to the results of the first half of 2019 shows a 15% increase in the cheese market in value terms. According to the Ministry of Agriculture, by the end of 2019, the amount of cheese produced in Russia would reach 680-700 thousand tons.

There is clear lack of premium mozzarella on the Russian market

There are around 30 mozzarella producers located in the European part of Russia. Most of them are concentrated in Moscow and Saint Petersburg Oblasts. Out of 30 companies, 24 produce mozzarella for the mass market with the average price of 1.5EUR/100Gr. 5 companies produce mid-range mozzarella with the average price of 2.5EUR/100Gr. Only one company in Russia offers Mozzarella di Buffalo with 4.2EUR/100GR price tag.

Table of content

Current trends in the Russian cheese industry
  • Cheese import
  • Recent investment projects
Russian premium segment market size
  • Premium HoReCa
  • Gourmet shops and small premium retail
  • Federal premium retail chains
Appendices
  • List of gourmet shops and premium retail
  •  List of Market Players
  • List of potential HoReCa and Retail distributors
  • Buffalo breeding in Russia
  • Potential governmental support (only applicable to the Moscow Region)
  • SWOT analysis

Russian companies expand their businesses and foreign companies invest in Russian cheese industry

Numerous cheese production investments projects have been announced in 2018 and 2019. Both Russian and international companies demonstrate a solid interest in expanding the existing business or establishing new cheese production facilities in Russia. Despite the fact that the majority of companies are trying to enlarge their share in mass-market segment, some foreign companies are going to target premium market segment, such as Deutsches Milchkontor GmbH or Savencia F & D.

Potential for distribution

The HoReCa segment can be targeted through food distributors that operate all over Russia. Some distribution companies have thousands of clients and there is no need to build a big sales team for targeting specific restaurants.
The number of high-end restaurants also indicates that premium segment exists despite the economic sanctions and currency weakness. However, almost all potential customers are located in 2 cities: Moscow and Saint Petersburg.

OCTOBER 2019 – 41 pages