The United States Department of Agriculture considers the Russian direction promising in terms of the export of some American food products. The USDA notes that Russia is Europe's largest consumer goods market. According to Russian experts, manufacturers in the United States are aware that the sanctions policy has led to losses for business, and are looking for opportunities for collaboration with Moscow, despite the current sanctions.
"The growth of the Russian food industry and retail market offers attractive niche opportunities for US suppliers," the USDA Foreign Agriculture Service said in a report. American experts pointed out that in 2019, the retail trade turnover in Russia, according to Rosstat, reached RUR 33.5 trillion ($ 444.21 billion), which is 1.6% higher than the level of 2018. Meanwhile, the turnover in the direct food retail segment slightly exceeded RUR 16.1 trillion ($ 213.49 billion), which, in turn, is 1.4% more than a year earlier. At the same time, American analysts noted that currently 80% of Russian food products presented in retail outlets are produced domestically, while until 2014, domestic production accounted for about 60% of products.
Also, the USDA studied the trends that Russian consumers tend to follow. With reference to a study by the German company GfK, Russians have a request to purchase natural products labeled "bio" or "eco". According to USDA analysts, this is due to the fact that many residents of the country are increasingly showing interest in a healthy lifestyle, changing their eating habits. "Russian consumers are counting calories more and more carefully and looking at the composition carefully, buying products with less artificial ingredients, fat and sugar," the report says. According to Euromonitor estimates, in 2019 the sales of such goods in the Russian market could exceed RUR 900 billion ($ 11.93 billion). American analysts also note that Russians value convenience when choosing food. In particular, they have a positive attitude towards finished products as an alternative to cooking at home. In addition, consumers tend to shop rationally by purchasing goods at lower prices. "Goods that are cheaper, more valuable, or not produced domestically represent an opportunity for US suppliers," the report says.
The trends discussed in the USDA report, experts are sure, increase the potential opportunities of American manufacturers in the Russian market, as they meet consumer needs. According to the report, the United States supplies Russia with tomato paste, nuts, dried cranberries, prepared foods, and sauces; to a lesser extent - wine, rice and food for cats and dogs. However, the share of many of the listed products on the Russian market is several times less compared to European and other foreign counterparts.
"Russia is a net importer of consumer products and the largest consumer goods market in Europe with nearly 145 million consumers," the USDA noted.
Source: DairyNews.ru.
