The Unusual Concepts analysts believe that Russian manufacturers and retailers are reorienting themselves to cheap food. According to them, in self-isolation, Russians are reluctant to spend money on food products of higher price categories. Analysts were based, inter alia, on official statistics and data provided by retailers.
According to the Covid-report on the consequences of the development of a pandemic in the world, food production in the Russian Federation is growing (increase for the Q1 2020 by almost 10%). At the same time, manufacturers are switching to cheaper products. The reason was the change in demand: in the first half of April, the turnover of products sold under the own brands of retailers and traditionally cheaper than analogues of other brands increased by 20%.
Sales of healthy food sets in April compared with March decreased by 35–40%, sales of fresh vegetables and fruits - by 60–65%, salad from their own departments of ready-made meals - by 80%. Unusual Concepts also noted an increase in demand for long-term storage products. In the first half of April, sales of canned goods increased by 50-60% compared to March 2020, and the sale of cereals jumped 120%. In March, buckwheat production increased by 40% compared to the same period last year and by 45% compared to February 2020. For pasta, volumes increased by 20%. Factories also began to produce more canned fruits and vegetables (+ 17% compared to last year), vegetable and animal oils (+ 18%).
The company's partner, Yuri Filatov, told Izvestia that in the next two years, food production will only increase momentum. Already at the end of the Q2 2020, food can occupy more than half of the entire consumer basket of Russians. The cost of production will be the main selection criterion. Unusual Concepts predicts that this situation will last until mid-2021, after which customers can return to their normal consumption patterns.
Source: agro.ru.
