Russia
Country
Russia
Continent
Eastern Europe
Market Performance
The Russian organic food market has been showing substantial growth over recent years. Particular emphasis has been on luxury goods and baby foods. Organic premiums on average range between 20 – 400% above conventional goods. Regulations are currently under development, it is hoped they will be well balanced in terms of imports and exports especially given their current market demands. However given the potential production capacity in terms of raw materials it is easy to see Russia pursuing a much larger export market opportunity.
Experts estimate (GAIN 2013) future sales of organic products could reach $167 million in 2013 and up to $225 million in 2015.
Consumer Preferences & Channels
The main consumers of organic food in Russia are high-income urbanites, largely in Moscow and St. Petersburg, who tend to be aware of their diet. (GAIN 2013) Currently, Russian consumers have no reliable standard to refer to when purchasing organic foods. Luxury goods and baby foods markets show strong growth – linked to the wealth metro population that is currently driving the organic market. Imports with recognizable certification control is trusted more by the Russian consumer.
Legislative Considerations
Currently at regulatory approval stage it is expected to be enforced early 2015. Driven by a number of factors – uncontrolled organic imports, desire to tap into raw material demand especially in the EU and as a support mechanism of Farmers that Russia needs to demonstrate as part of its desire to join WTO.
Events
DIT Russia are inviting business to join the webinar 'Setting up a representative office in Russia’ that will take place on 13 July 2017 at 10.00 a.m. UK time.
The webinar is designed for UK companies willing to set up representation in Russia. Tom Stansmore, General Director of Emerging Market Groups will cover key aspects of establishing a representative office or branch in Russia. The topics will include - forms of representation, common mistakes of international companies when they start business in Russia, managing distance employees. The speaker is an experienced lawyer who regularly advises companies on various aspects of doing business in the market.
Please register to the webinar following this link
https://attendee.gotowebinar.com/register/3019574873167366657
Sources & Links to Further Info