The Russian tea market continues developing and to be the most stable in spite of crisis processes

08 Sep 2009 • by Natalie Aster

Experts of «Information Agency «CredInform North-West» reached such conclusion having made marketing research: The Russian tea market: state and development trends. According to experts estimations in 2008 the market volume in kind grew more than 20% in comparison with 2004. The growth trend in the current year will be also kept at the same level and according to the basic scenario the market volume in kind should grow at 12%.

Consolidation process in the Russian tea market began five years ago. Just at this time the small-sized players started to close their business. Now small companies including elite tea traders occupy approximately 20% of the market in kind. The small-sized players continue to abandon the market in future as the large companies will continue own development way by means of their position replacement. It is quite probable that in some years there are only players of the federal value in Russia which products will be presented in all price segments.

The share of tea grown up in Russia makes less than 0.5% of total Russian tea market volume. Manufacture of the Russian tea is carried out by the following Krasnodar territory enterprises: ZAO "Krasnodarchay", OOO «Adlerskaya chaynaya fabrika», OOO «Dagomysskaya chaynaya fabrika», OOO "Adler-chay", OOO "DCHF".

According to audit data of retail trade the Moscow market is still the most capacious. The third part of considered category products is almost sold in capital - in value terms its share makes about 40% of total amount of tea sales in Russia. That is why the given market is the most profitable for sellers. It is sold 45.5% of tea in value terms in the largest cities of the European Russian part, and in 6 cities of Siberia – 14.5% of such products.

Now the basic development trends of the Russian tea market are the following: retail tea prices growth; competition aggravation; displacement of demand towards average and cheaper tea grades. But at the same time consumers will necessarily pay attention to quality. Those who nevertheless are going to cut down expenses will purchase tea in volume package, and either cardboard or polymeric package.