Range of products covered in the organic packaged food market basically consist of : Organic Baby Food, Organic Bread, Organic Breakfast Cereals, Organic Chilled Processed Meat and Seafood, Organic Confectionery, Organic Dairy, Organic Edible Oil, Organic Frozen Meat, Seafood, Fruit and Vegetables, Organic Ice Cream, Organic Ready Meals, Organic Rice, Pasta and Noodles, Organic Sauces, Dressings and Condiments, Organic Savoury Snacks, Organic Shelf Stable Meat, Seafood, Fruit and Vegetables, Organic Soup, Organic Spreads, Organic Sweet Biscuits, Snack Bars and Fruit Snacks.
Russia has shown enormous prospective for export of organic foods, though the market still looks for a regulatory framework for proliferating quickly. Russian producers of organic foods have founded the Union of Organic Farming to sway their interests with the mission for the union mainly centered towards formation of a regulatory framework for the market. Organic farming has by now become a global trend as people are largely indulged in organic food production in about 160 countries, and also laws are already available in more than half of these countries for controlling the respective markets. Therefore, the need for a proper framework in Russia is felt for further enhancing organic production as well as turning both domestic sales and exports more lucrative to the farmers in Russia.
In the country, organic packaged food has stayed to be the lowest HW packaged food category in 2016 and the cumulative development of such food can be featured as formative. It has been noticed that very less Russian consumers were aware enough to demand such products, and few manufacturers have made opposing decisions to indulge in higher costs and questionable returns of organic food production.
According to the report, “Organic packaged Food in Russia”, most of the organic products in Russia have prolonged to be imported from EU countries, like Germany, France and Italy. The sales have been taking place in specialized stores especially in places where upper income Russians reside, and also in some other premium retail chain outlets like Azbuka Vkusa and Globus Gourmet in Moscow, which have remained very popular for the distribution and promotion of value-added green and healthy products.
Organic goods are typically observed to be much more expensive than their traditional equivalents, thus they account for a very less percent of the overall supermarket sales in Russia. The main consumers of organic food in the country have majorly been noticed to be the high-income urbanites, largely in Moscow and St. Petersburg, who seem to be careful enough of their diet.
Almost the entire range of packaged food, among the large manufacturers, consists of these top international players namely Hipp Rus OOO and Humana Milchunion eG and the latest grocery retailers extensively sell the baby food manufacturers’ products. Hipp Rus OOO has continually been the leading player in organic packaged food in Russia with a significant value share in 2016.
Russian organic packaged food market is foreseen to witness strongly ameliorated compounded growth rates in the coming future majorly due to stringent laws expected to be passed regarding organic production in the country. Anyhow, the development and enhancement of the market on a whole will not be that easy since it is at its nascent stage currently but gradually it will definitely prosper making the market enjoy huge profits with increased sales targeting the volume majorly.
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