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The 2006-2015 Outlook for the Baby Food Market in Russia

The 2006-2015 Outlook for the Baby Food Market in Russia 2

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Summary During the period from 2005 to 2008 the volume of baby food sales in Russia increased. In 2009-2010 the growth gave way to a decline, caused by an upsurge in prices for basic groups of baby food.

In 2011 the sales will resume their growth. The market growth is stimulated not only by the increase in the share of consumers, but also by the changes in the culture of baby food consumption. Parents are beginning to buy manufactured baby products more often and tend to trust that manufacturers produce high-quality and safe food.

The leader of the baby food market in Russia is the juice segment. In 2009 its share exceeded 60% of the total baby food sales. By 2014 the volume of baby juice sales will have increased by 11.6% from 2009, having amounted to 1.7 million tons. The reason of domination of juices in the market lies in the large number of juice consumers. Unlike baby cereals, infant formulas, baby canned meat, fruit and vegetables, baby juices are also consumed by grown-ups, because many of them believe that juice manufactured especially for infants is of higher quality.

The 2006-2015 Outlook for the Baby Food Market in Russia contains the essential data, necessary to comprehend the current market opportunities and conditions and to assess the future prospects, covering such points as:

The overall assessment of the economic environment in Russia

Volume of baby food sales

Balance of demand for and supply of baby food

Number of consumers and average consumption of baby food

Economic output, total exports and imports, the volume of merchandise in storage

Cost price, import and export cost, retail price for baby food

Ratings of the industry in terms of economic output and sales revenue

Financial and economic profiles of leading enterprises.

In this report the products are categorized the following way:

Substitutes of breast milk and milk-based infant formulas

Dairy products for infants

Infant cereals and cereal-based infant formulas

Preserves for infants

Juice for infants

The report presents an account of top baby food producers.

The survey is based on the official statistics, obtained from:

Federal State Statistics Service of the Russian Federation

Ministry of the Economic Development of the Russian Federation

Federal Customs Service of the Russian Federation

Federal Tax Service of the Russian Federation



Apart from the official statistics, the survey also contains the results of the research done by BusinesStat:

Survey of baby food consumers in Russia

Audit of baby food retailing in Russia

Survey of experts of the baby food market



Table of Contents CONDITION OF THE RUSSIAN ECONOMY ------------------------------------------------------------------------------ 10

Basic Characteristics of the Russian Economy ------------------------------------------------------------------- 10

Table 1. Volume of nominal and real GDP, Russia, 2006-2015 (trillion rubles). ------------------------- 10 Table 2. Volume of real GDP and its index, Russia, 2006-2015 (trillion rubles, as a percentage of

the previous year). ------------------------------------------------------------------------------------------------------- 11 Table 3. Fixed investment with the consideration of all the sources of financing, Russia, 2006-2015

(trillion rubles). ------------------------------------------------------------------------------------------------------------ 11 Table 4. Total exports and imports, export surplus, Russia, 2006-2015(billion dollars) ---------------- 12 Table 5. The average annual exchange rate of the US dollar to the Russian Federation ruble,

Russia, 2006-2015 (RUR / USD) ------------------------------------------------------------------------------------ 12 Table 6. Consumer price index (inflation rate) and food price index, Russia, 2006-2015 (as a

percentage of the previous year). ------------------------------------------------------------------------------------ 13 Table 7. Population size, including migrants, Russia, 2006-2015 (million people). --------------------- 13 Table 8. Actual household income, Russia, 2006-2015 (thousand rubles per month, as a

percentage of the previous year). ------------------------------------------------------------------------------------ 14

Opportunities of the Russian Economy ------------------------------------------------------------------------------ 15

CLASSIFICATION OF BABY FOOD ----------------------------------------------------------------------------------------- 16

DEMAND FOR AND SUPPLY OF BABY FOOD ------------------------------------------------------------------------- 17

Supply --------------------------------------------------------------------------------------------------------------------------- 17

Table 9. The total volume of supply of baby food, Russia, 2006-2010 (thousand tons) ---------------- 17 Table 10. Forecast of the total volume of supply of baby food, Russia, 2011-2015 (thousand tons)17 Table 11. Production, import and in-stock balance of baby food at the beginning of the year, Russia,

2006-2010 (thousand tons) -------------------------------------------------------------------------------------------- 18 Table 12. Forecast of production, import and in-stock balance of baby food at the beginning of the

year, Russia, 2011-2015 (thousand tons) ------------------------------------------------------------------------- 18

Demand ------------------------------------------------------------------------------------------------------------------------- 19

Table 13. The total volume of demand for baby food, Russia, 2006-2010 (thousand tons) ----------- 19 Table 14. Forecast of the total volume of demand for baby food, Russia, 2011-2015 (thousand tons)

------------------------------------------------------------------------------------------------------------------------------- 19 Table 15. Sales and export of baby food, Russia, 2006-2010 (thousand tons) -------------------------- 19 Table 16. Forecast of sales and export of baby food, Russia, 2011-2015 (thousand tons) ----------- 19

Balance of Demand and Supply ---------------------------------------------------------------------------------------- 20

Table 17. Balance of demand for and supply of baby food, including in-stock balance at the end of the year, Russia, 2006-2010 (thousand tons, %) ---------------------------------------------------------------- 20

Table 18. Forecast of the balance of demand for and supply of baby food, including in-stock balance at the end of the year, Russia, 2011-2015 (thousand tons, %) ------------------------------------ 20

RETAIL SALES OF BABY FOOD -------------------------------------------------------------------------------------------- 21



Actual Volume of Sales ---------------------------------------------------------------------------------------------------- 22

Table 19. Actual volume of sales of baby food, Russia, 2006-2010 (thousand tons, %) --------------- 22 Table 20. Forecast of the actual volume of sales of baby food, Russia, 2011-2015 (thousand tons,

%) ---------------------------------------------------------------------------------------------------------------------------- 22 Table 21. Actual volume of sales of baby food by type, Russia, 2006-2010 (thousand tons) --------- 22 Table 22. Forecast of the actual volume of sales of baby food by type, Russia, 2010-2014

(thousand tons) ----------------------------------------------------------------------------------------------------------- 23

Cost Volume of Sales ------------------------------------------------------------------------------------------------------- 24

Table 23. Cost volume of baby food sales, Russia, 2006-2010 (billion rubles) --------------------------- 24 Table 24. Forecast of the cost volume of baby food sales, Russia, 2011-2015 (billion rubles) ------- 24 Table 25. Cost volume of baby food sales by type, Russia, 2006-2010 (thousand tons) -------------- 24 Table 26. Forecast of the cost volume of baby food sales by type, Russia, 2011-2015 (thousand

tons) ------------------------------------------------------------------------------------------------------------------------- 24

Retail Price for Baby Food ------------------------------------------------------------------------------------------------ 25

Table 27. Retail price for baby food, Russia, 2006-2010 (rubles per kg) ---------------------------------- 25 Table 28. Forecast of the retail price for baby food, Russia, 2011-2015 (rubles per kg) --------------- 25 Table 29. Retail price for baby food by type, Russia, 2006-2010 (rubles per kg) ------------------------ 26 Table 30. Forecast of the retail price for baby food by type, Russia, 2011-2015 (rubles per kg) ---- 26

Correlation between the Retail Price and the Inflation Rate --------------------------------------------------- 27

Table 31. Correlation between the retail price for baby food and the inflation rate, Russia, 2006-2010 (%) ------------------------------------------------------------------------------------------------------------------- 27

Table 32. Forecast of the correlation between the retail price for baby food and the inflation rate, Russia, 2011-2015 (%) ------------------------------------------------------------------------------------------------- 27

Correlation among the Actual Volume of Sales, the Cost Volume of Sales and the Retail Price -- 28

Table 33. Correlation among the actual volume of sales, the cost volume of sales and the retail price for baby food, Russia, 2006-2010 (thousand tons; rubles per kilogram; billion rubles) --------- 28

Table 34. Forecast of the correlation among the actual volume of sales, the cost volume of sales and the retail price for baby food, Russia, 2011-2015 (thousand tons; rubles per kilogram; billion rubles) ---------------------------------------------------------------------------------------------------------------------- 28

CONSUMPTION OF BABY FOOD ------------------------------------------------------------------------------------------- 29

Number of Consumers ----------------------------------------------------------------------------------------------------- 29

Table 35. Number of consumers of baby food, Russia, 2006-2010 (million people) -------------------- 29 Table 36. Forecast of the number of consumers of baby food, Russia, 2011-2015 (million people) 29 Table 37. Number of consumers of baby food by type, Russia, 2006-2010 (million people) ---------- 30 Table 38. Forecast of the number of consumers of baby food by type, Russia, 2011-2015 (million

people) --------------------------------------------------------------------------------------------------------------------- 30

Share of Consumers in the Population ------------------------------------------------------------------------------- 31

Table 39. Share of consumers of baby food in the population of Russia, 2006-2010 (%) ------------- 31 Table 40. Forecast of the share of consumers of baby food in the population of Russia, 2011-2015

(%) --------------------------------------------------------------------------------------------------------------------------- 31



Level of Consumption and Average Expenditures --------------------------------------------------------------- 32

Table 41. Volume of consumption of and average expenditures on baby food, Russia, 2006-2010 (kg per annum; rubles per annum) ---------------------------------------------------------------------------------- 32

Table 42. Forecast of the volume of consumption of and average expenditures on baby food, Russia, 2011-2015 (kg per annum; rubles per annum) --------------------------------------------------------- 32

Table 43. Volume of consumption of baby food by type, Russia, 2006-2010 (kilograms per annum) ------------------------------------------------------------------------------------------------------------------------------- 33

Table 44. Forecast of the volume of consumption by type of baby food, Russia, 2011-2015 (kilograms per annum) -------------------------------------------------------------------------------------------------- 33

Table 45. Average customer expenditures on baby food purchase, Russia, 2006-2010 (rubles per annum) --------------------------------------------------------------------------------------------------------------------- 34

Table 46. Forecast of the average customer expenditures on baby food purchase, Russia, 2011-2015 (rubles per annum) ----------------------------------------------------------------------------------------------- 34

PRODUCTION OF BABY FOOD ---------------------------------------------------------------------------------------------- 35

Actual Volume of Production -------------------------------------------------------------------------------------------- 35

Table 47. Production of baby food, Russia, 2006-2010 (thousand tons) ----------------------------------- 35 Table 48. Forecast of baby food production, Russia, 2011-2015 (thousand tons) ---------------------- 35 Table 49. Production of baby food by type, Russia, 2006-2010 (thousand tons) ------------------------ 36 Table 50. Forecast of baby food production by type, Russia, 2011-2015 (thousand tons) ------------ 36

Production Cost -------------------------------------------------------------------------------------------------------------- 37

Table 51. Production cost of baby food, Russia, 2006-2010 (rubles per kg) ------------------------------ 38 Table 52. Forecast of the production cost of baby food, Russia, 2011-2015 (rubles per kg) --------- 38 Table 53. Production cost of baby food by type, Russia, 2006-2010 (rubles per kg) ------------------- 39 Table 54. Forecast of the production cost of baby food by type, Russia, 2011-2015 (rubles per kg)

------------------------------------------------------------------------------------------------------------------------------- 39

Rating of Companies by Economic Output ------------------------------------------------------------------------- 40

Table 55. Rating of companies, producing substitutes of breast milk and milk-based infant formulas, by economic output, Russia, 2009 (tons) -------------------------------------------------------------------------- 40

Table 56. Rating of companies, producing dairy products for infants, by economic output, Russia, 2009 (tons) ---------------------------------------------------------------------------------------------------------------- 41

Table 57. Rating of companies, producing infant cereals and cereal-based infant formulas, by economic output, Russia, 2009 (tons) ------------------------------------------------------------------------------ 42

Table 58. Rating of companies, producing canned fruit and vegetables for infants, by economic output, Russia, 2009 (tons) -------------------------------------------------------------------------------------------- 43

Table 59. Rating of companies, producing juice for infants, by economic output, Russia, 2009 (tons) ------------------------------------------------------------------------------------------------------------------------------- 44

EXPORT AND IMPORT OF BABY FOOD ---------------------------------------------------------------------------------- 45

Trade Balance ----------------------------------------------------------------------------------------------------------------- 45

Table 60. Balance of export and import of baby food, Russia, 2006-2010 (thousand tons) ----------- 45 Table 61. Forecast of the balance of export and import of baby food, Russia, 2011-2015 (thousand

tons) ------------------------------------------------------------------------------------------------------------------------- 45



Actual Volume of Export -------------------------------------------------------------------------------------------------- 46

Table 62. Actual volume of baby food export from Russia, 2006-2010 (thousand tons) --------------- 46 Table 63. Forecast of the actual volume of baby food export from Russia, 2011-2015 (thousand

tons) ------------------------------------------------------------------------------------------------------------------------- 46 Table 64. Actual volume of baby food export from Russia by type, 2006-2010 (thousand tons) ----- 47 Table 65. Forecast of the actual volume of baby food export from Russia by type, 2011-2015

(thousand tons) ----------------------------------------------------------------------------------------------------------- 47

Cost Volume of Export ----------------------------------------------------------------------------------------------------- 48

Table 66. Cost volume of baby food export from Russia, 2006-2010 (million dollars) ------------------ 48 Table 67. Forecast of the cost volume of baby food export from Russia, 2011-2015 (million dollars)

------------------------------------------------------------------------------------------------------------------------------- 48 Table 68. Cost volume of baby food export from Russia by type, 2005-2010 (million dollars) ------- 49 Table 69. Forecast of the cost volume of baby food export from Russia by type, 2011-2015 (million

dollars) ---------------------------------------------------------------------------------------------------------------------- 49

Export Cost -------------------------------------------------------------------------------------------------------------------- 50

Table 70. Average export cost of baby food, Russia, 2006-2010 (dollars per kg) ----------------------- 50 Table 71. Forecast of the average export cost of baby food, Russia, 2011-2015 (dollars per kg) --- 50 Table 72. Average cost of baby food, exported from Russia, by type, 2006-2010 (dollars per kg) -- 51 Table 73. Forecast of the average cost of baby food, exported from Russia, by type, 2011-2015

(dollars per kg) ------------------------------------------------------------------------------------------------------------ 51

Actual Volume of Import --------------------------------------------------------------------------------------------------- 52

Table 74. Actual volume of baby food import into Russia, 2006-2010 (thousand tons) ---------------- 52 Table 75. Forecast of the actual volume of baby food import into Russia, 2011-2015 (thousand

tons) ------------------------------------------------------------------------------------------------------------------------- 52 Table 76. Actual volume of baby food import into Russia by type, 2006-2010 (thousand tons) ------ 53 Table 77. Forecast of the actual volume of baby food import into Russia by type, 2011-2015

(thousand tons) ----------------------------------------------------------------------------------------------------------- 53

Cost Volume of Import ----------------------------------------------------------------------------------------------------- 54

Table 78. Cost volume of baby food import into Russia, 2006-2010 (million dollars) ------------------- 54 Table 79. Forecast of the cost volume of baby food import into Russia, 2011-2015 (million dollars)

------------------------------------------------------------------------------------------------------------------------------- 54 Table 80. Cost volume of baby food import into Russia by type, 2006-2010 (million dollars) --------- 55 Table 81. Forecast of the cost volume of baby food import into Russia by type, 2011-2015 (million

dollars) ---------------------------------------------------------------------------------------------------------------------- 55

Import Cost -------------------------------------------------------------------------------------------------------------------- 56

Table 82. Average import cost of baby food, Russia, 2006-2010 (dollars per kg) ----------------------- 56 Table 83. Forecast of the average import cost of baby food, 2011-2015 (dollars per kg) -------------- 56 Table 84. Average cost of baby food, imported into Russia, by type, 2006-2010 (dollars per kg) --- 57 Table 85. Forecast of the average cost of baby food, imported into Russia, by type, 2011-2015

(dollars per kg) ------------------------------------------------------------------------------------------------------------ 57

ECONOMIC INDICATORS OF THE INDUSTRY -------------------------------------------------------------------------- 58



Rating of Companies by Sales Revenue ----------------------------------------------------------------------------- 59

Table 86. Rating of companies, producing baby food, by sales revenue (net), Russia, 2009 (thousand rubles) -------------------------------------------------------------------------------------------------------- 59

Financial Results ------------------------------------------------------------------------------------------------------------ 60

Table 87. Sales revenue, Russia, 2006-2010 (billion rubles) ------------------------------------------------- 60 Table 88. Business and executive expenses, Russia, 2006-2010 (billion rubles) ----------------------- 60 Table 89. Product cost, Russia, 2006-2010 (billion rubles) ---------------------------------------------------- 61 Table 90. Gross profit on sales, Russia, 2006-2010 (billion rubles) ----------------------------------------- 61

Economical Effectiveness of the Branch ---------------------------------------------------------------------------- 62

Table 91. Economical effectiveness of the branch, Russia, 2006-2010 (%, time, day)----------------- 62

Investments -------------------------------------------------------------------------------------------------------------------- 63

Table 92. Investments into the branch, Russia, 2006-2010 (million rubles) ------------------------------- 63

Labor Resources ------------------------------------------------------------------------------------------------------------- 64

Table 93. Labor resources of the branch, Russia, 2006-2010 (thousand people, million rubles, thousand rubles per annum) ------------------------------------------------------------------------------------------ 64

ECONOMIC PROFILES OF THE LEADING COMPANIES ------------------------------------------------------------ 65

EXPERIMENTAL CANNERY «LEBEDYANSKY», OJSC ---------------------------------------------------------- 65

Registration Data of the Company ----------------------------------------------------------------------------------- 65 Company Management ------------------------------------------------------------------------------------------------ 66 Employee Number ------------------------------------------------------------------------------------------------------- 66 Major Shareholders ----------------------------------------------------------------------------------------------------- 66 Subsidiary Companies -------------------------------------------------------------------------------------------------- 67 Economic Output by Produce Type --------------------------------------------------------------------------------- 68 Accounting Balance Sheet (Form 1) -------------------------------------------------------------------------------- 69 Statement of Income and Expenditures (Form 2) ---------------------------------------------------------------- 70 Financial Indexation of the Company ------------------------------------------------------------------------------- 71

«Progress», OJSC ----------------------------------------------------------------------------------------------------------- 72

Registration Data of the Company ----------------------------------------------------------------------------------- 72 Company Management ------------------------------------------------------------------------------------------------ 73 Employee Number ------------------------------------------------------------------------------------------------------- 73 Major Shareholders ----------------------------------------------------------------------------------------------------- 73 Subsidiary Companies -------------------------------------------------------------------------------------------------- 73 Economic Output by Produce Type --------------------------------------------------------------------------------- 74 Accounting Balance Sheet (Form 1) -------------------------------------------------------------------------------- 75 Statement of Income and Expenditures (Form 2) ---------------------------------------------------------------- 76 Financial Indexation of the Company ------------------------------------------------------------------------------- 77

Baby Food «Istra-Nutrizia», OJSC ------------------------------------------------------------------------------------- 78

Registration Data of the Company ----------------------------------------------------------------------------------- 78



Company Management ------------------------------------------------------------------------------------------------ 79 Employee Number ------------------------------------------------------------------------------------------------------- 79 Major Shareholders ----------------------------------------------------------------------------------------------------- 79 Subsidiary Companies -------------------------------------------------------------------------------------------------- 79 Economic Output by Produce Type --------------------------------------------------------------------------------- 80 Accounting Balance Sheet (Form 1) -------------------------------------------------------------------------------- 81 Statement of Income and Expenditures (Form 2) ---------------------------------------------------------------- 82 Financial Indexation of the Company ------------------------------------------------------------------------------- 83

Nutritek, CJSC ---------------------------------------------------------------------------------------------------------------- 84

Registration Data of the Company ----------------------------------------------------------------------------------- 84 Company Management ------------------------------------------------------------------------------------------------ 85 Company Management ------------------------------------------------------------------------------------------------ 85 Employee Number ------------------------------------------------------------------------------------------------------- 85 Major Shareholders ----------------------------------------------------------------------------------------------------- 85 Subsidiary Companies -------------------------------------------------------------------------------------------------- 85 Economic Output by Produce Type --------------------------------------------------------------------------------- 85 Accounting Balance Sheet (Form 1) -------------------------------------------------------------------------------- 86 Statement of Income and Expenditures (Form 2) ---------------------------------------------------------------- 87 Financial Indexation of the Company ------------------------------------------------------------------------------- 88

Baby Food Plant «Faustovo», OJSC ---------------------------------------------------------------------------------- 89

Registration Data of the Company ----------------------------------------------------------------------------------- 89 Company Management ------------------------------------------------------------------------------------------------ 90 Company Management ------------------------------------------------------------------------------------------------ 90 Employee Number ------------------------------------------------------------------------------------------------------- 90 Major Shareholders ----------------------------------------------------------------------------------------------------- 90 Economic Output by Produce Type --------------------------------------------------------------------------------- 90 Accounting Balance Sheet (Form 1) -------------------------------------------------------------------------------- 91 Statement of Income and Expenditures (Form 2) ---------------------------------------------------------------- 92 Financial Indexation of the Company ------------------------------------------------------------------------------- 93



Condition of the Russian Economy

Basic Characteristics of the Russian Economy

Table 1. Volume of nominal and real GDP, Russia, 2006-2015 (trillion rubles). 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Trillion rubles (current prices) 26.9 33.2 41.4 39.1 45.7 51.6 57.1 63.2 68.5 74.0

Trillion rubles (prices of 2003) 16.3 17.6 18.6 17.1 17.7 18.3 18.9 19.5 20.5 21.4

Source: Ministry of the Economic Development of the Russian Federation, BusinesStat

In 2008 the GDP of Russia was 41.3 trillion rubles on the current basis. At the year-end the economic growth equaled 24.6% in nominal terms (in current prices, unadjusted for inflation) and 5.6% in real terms (in fixed prices for 2003). Nevertheless, the GDP decreased by 6% in 2009.

The rapid growth of the Russian economy in the middle of the 2000's was made for by 3 major factors:

Record income of energy product and metal exporters

Availability of financial resources to the Russian enterprises in the credit and stock markets

Permanent income growth and availability of consumer loans

Pumping of the economy with easy money and rush demand urged the manufacturers and distributors to augment trade stocks, hoping for greater demand. With the beginning of the crisis availability of loans plummeted, devaluation reduced attraction of import, and consumer pessimism prevailed in the market. The stocked merchandize became surplus. Consumers refused to do shopping, and production started slumping without orders. Customers went on strike: instead of spending, they began to save money.

By the middle of 2008 Russian banks and companies had accumulated significant external debts, which totaled 540 billion dollars. It is particularly remarkable, that it took them only 3 and half years to do it: on 1 January 2005 the volume of external debt equaled 100 billion dollars. It was the credit abundance that was the major driver of the economic buoyancy in the middle of the 2000s, not oil sales.

However, as soon as the sources of foreign borrowings became unavailable, the whole Russian economy received a great shock. According to Sergey Aleksashenko, Macroeconomic Research Director of the State University – Higher School of Economics, 40% of the foreign debts were short-term. From the middle of 2008 to the end of 2009 banks and enterprises were to acquit 200 billion dollars of debt. This sum should be added to uncollected 200 billion dollars that had been sunk into the economy for the previous one and a half years. All in all, the total credit crunch neared 400 billion dollars (25% of the national GDP).

The greatest losses in Russia fell on the financial, construction, automobile and metallurgical industries, that were greatly dependant on the investments, loans and external economic conditions. The rest of the industries suffered as well, to a greater or lesser extent. The demand was the same only for staple foodstuffs and essential commodities. However, manufacturers of these goods incurred losses because of the prolonged arrears in payment from distributors and retailers.

In 2009 about 37 thousand of companies were dissolved in Russia, 30% of which were liquidated due to bankruptcy. Such companies as “KrasAir”, “IzhAuto”, “Avia”, “Betalink”, “Tsifrograd”, “Dixis”, “Neotorg” and “Tyumenenergobank”.



Classification of Baby Food Depending on the raw material, the group of products for infants is divided into sub-groups:

Substitutes of breast milk and milk-based infant formulas

Dairy products for infants

Infant cereals and cereal-based infant formulas

Canned food for infants

Juices for infants

Substitutes of breast milk and milk-based infant formulas are products based on cow milk, soy protein, and other raw materials of high quality. The raw material is similar to breast milk by content and quality, and is thus adapted to the functional peculiarities of the newborn organism.

Dairy products for infants are divided into the following groups by texture:

Liquid and paste-like products are manufactured from whole cow milk and are used for children up to 12 months (as complementary food) and for 1-3 year-old children. Liquid and paste-like products include sterile milk, cultured milk products, cottage cheese and milk drinks.

Milk powder, dry and liquid milk drinks, imported preserves based on milk and fruit: yoghurt with pears (“Heinz”, Italy); canned puree from yoghurt with pears (“Bona”, Finland).

Depending of the content and purpose, infant cereals and cereal-based infant formulas are classified into:

Cereals (for infants from 5 months)

Different kinds of diet powder, for making formulas and cereals at home

Formulas based on diet powder (for infants from 3 months)

Formulas based on decoctions (for infants from 2 weeks)

Instant baby cookies

The range of preserves for infants has significantly expanded during the recent years.

There are canned meat and canned meat and vegetables, produced for infants. Canned meat without other additives is manufactured from natural meat (beef, pork, poultry meat) that has been properly processed, with broth, butter, vegetable oil, stabilizers (starch, powder), or onion.

Canned fruit and berry include:

Natural fruit puree; puree from a mixture of fruits; fruit or berry puree with sugar; puree from a mixture of fruit and berries with sugar; puree from a mixture of fruit, berries, vegetables, fruit and berry juices with sugar; puree from fruit with grains and milk; puree from fruit with cream.

Fruit and berry creams

Fruit and berry desserts

Preserves with vitamins

There are both, clarified juices and pulpy juices manufactured for infants, which provide the organisms of infants with food fibers stimulating activity of the digestive tract. That is the reason why pulpy juices are given to older children, who have a more stable mucous coat in the bowels.



Consumption of Baby Food In the current chapter the market is analyzed in terms of consumption patterns. It concerns all the consumers, including foreigners living in Russia, because they can also turn out to be consumers of baby food.

BusinesStat carries out annual surveys of consumers of baby food with the sample of 1,400 respondents.

Number of Consumers

Table 35. Number of consumers of baby food, Russia, 2006-2010 (million people)

2006 2007 2008 2009 2010

Number of consumers (million people) 75.4 76.0 76.5 76.5 76.7

Dynamics (% of the previous year) 0.5 0.8 0.6 -0.1 0.3

Source: BusinesStat, Standardized Survey of Baby Food Consumers, All-Russian regular survey, sample of 1,400 respondents.

Table 36. Forecast of the number of consumers of baby food, Russia, 2011-2015 (million people)

2011 2012 2013 2014 2015

Number of consumers (million people) 77.3 77.4 77.5 77.7 77.7

Dynamics (% of the previous year) 0.8 0.1 0.1 0.2 0.1

Source: BusinesStat, Standardized Survey of Baby Food Consumers, All-Russian regular survey, sample of 1,400 respondents.



Actual Volume of Export

Export characterizes coming-out of goods from Russia to the countries of the world. Not all the products are regarded as export, but only the goods that do not return to Russia. Part of produce can be re-exported, if, for example, it was rejected as defective or had not been sold at a commodity auction.

Table 62. Actual volume of baby food export from Russia, 2006-2010 (thousand tons)

Parameter 2006 2007 2008 2009 2010

Export (thousand tons) 18.1 18.6 17.5 16.4 16.2

Dynamics (% of the previous year) 7.3 2.9 -6.1 -6.4 -0.9

Source: Federal Customs Service of the Russian Federation. Customs Declaration / Transit Entry for participants of the foreign economic activity "Record of Cargo and Fund Transit across the Border”.

Index “Export of Baby Food" reflects the net amount of the goods, carried across the Russian border during the year. The measurement unit “Net cargo - tons" is obtained from weighing the cargo at the border, exclusive of the vehicle and package weight. Unit of account: all enterprises engaged in foreign economic activities in Russia.

Table 63. Forecast of the actual volume of baby food export from Russia, 2011-2015 (thousand tons)

Parameter 2011 2012 2013 2014 2015

Export (thousand tons) 16.5 16.4 16.4 16.5 16.6

Dynamics (% of the previous year) 1.5 -0.5 -0.02 0.8 0.7

Source: BusinesStat, Complex Analysis of Marketing Data

the 2006-2015 outlook for the baby food market in …the 2006-2015 outlook for the baby food market...

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