Frozen bread and bakery foods market is still attractive in spite of occurring crisis processes and slow stage of the market development.

12 Dec 2010 • by Natalie Aster

Experts of Information Agency «Credinform North-West» consider that Russian frozen bread and bakery foods market is in an initial development stage and rather young. But gradual recession of fresh bread demand (1-3% per year) and basic business profitability, undertaken anti-recessionary measures, growth of interest to frozen grain products by HoReCa, mini-bakeries, fast food, households, development of network distribution, and etc are allowed to tell about further development of the given market over next years.

So, during considered period 2003-2007 the capacity of frozen bread market has shown positive growth at level 159.4%. Slightly smaller growth figure of market volume is registered in the frozen bakery products market (half-finished dough products). Since 2003 the market has increased in 1.4 times in kind as of the beginning of 2008.

According to experts, there are about 5 large operators in the frozen bread and bakery foods market which share is about 50% of the Russian market. The rest of 10 operators occupy about 35% of market.

Potential basis for frozen grain production manufacture is enterprises of baking industry. Majority of bakery products is made in two regions – in Central and Privolzhskiy region.

According to experts, the greatest realization volume of frozen bread and bakery foods in Russia through channels of retail trade are grocery stores, markets and supermarkets.

In condition of developing economic crisis in Russia while realizing different projects and investment programs that include in opening of new capacities and reconstruction existing ones. Expert recommendations about planning and realization of anti-recessionary actions are that a company should be ready to the most pessimistic development variant.