Frozen convenience foods market trends and description with 2008 outlook
— 2007-10-15 —
Produkty Pitania Vice-President Damir Imamovic delivered a report at the Russian Agricultural Products Forum at the World Food Moscow 2007 exhibition.
The Russian frozen convenience products market demonstrated sustainable growth.
However, industry players are facing some problems. There is a need for clear classification of products in order for market players to be able to use a single set of statistics.
Another problem is the consumer stereotype against frozen products, which they often consider to be long-stored and not fresh. This is not true but consumers have to be made aware of modern technologies that help preserve fresh food and offer improved taste and convenience to consumers.
Internationally the development of frozen convenience sector is growing much slower than in Russia.
In the last several years the general economic development boosted demand for frozen convenience products in Russia. Damir Imamovic described situations where such products provide the best solution to everyday issues of consumers.
Despite the stability and saturation of the international market it is impossible to replicate European experience due to specific features of the Russian market.
Pelmenis, a traditional Russian product, have been a major competitor for the sector and was represented by quite a number of minor and major producers. 90% of consumers prefer products from the brand they know and recognize.
Major discounters have demonstrated their interest in premium category pelmenis but they are not capable of finding a good compromise here.
Medium segment will stagnate while premium segment is expected to be growing.
Vareniki is another competitive market share. Some analysts regard them as pelmenis due to lack of classification while others prefer to consider them as a separate category of products.
Frozen pancakes are fairly new and interesting on the market. This segment has good growth prospects in the regions while the market reached its apex in major cities of Central Russia.
Hot meals category is also expected to develop rapidly in the next several years.
Pizza segment has been growing steadily for the last several years and the trend is expected to continue. Frozen pizza market is far from being saturated and investments are made in the market segment.
Local producers of pizza have major advantages over international market players in Russia.
Based on analytical data Produkty Pitania decided to produce dough products at its testing production facility. Within the framework of the company’s diversification strategy a new position of snacks will be included in the company’s portfolio.
Frozen fish and sea products segment is a growing and promising one.
Frozen vegetables and fruit have demonstrated somewhat slowing growth trends.
Generally speaking, frozen convenience foods market is growing and complex recipe products are facing a bright future. As production technologies develop, they help consumers buy better products at cheaper prices and foster the development of public catering facilities and retail chains. The importance of healthy nutrition will be growing. Today Russia can rely on excellent examples of the world’s frozen foods market development and, based on this experience it is possible for Russia to avoid mistakes made previously in other countries.