
See also:
Market News
Russian Spread Market is Actively Developing
The Russian spread market is actively developing. In 2006-2010, the spread production increased three times and in 2010 it amounted to 168.5 thousand tons. Spreads do not differ from butter by its consumer qualities. However, due to the extremely high prices for milk and complicated technological process of its processing to butter, the production of spreads on the base of animal fat has become more economic in Russia. Besides, spread is significantly cheaper than butter. This fact will guarantee the stable demand increase in the future both in the industrial and the retail sales sectors. In 2006-2010, the average selling price for spread in all the sectors went up by 12.8 % and reached 83.1 rubles per kilogram.
In 2006-2010, consumer number of spread in Russia increased primarily due to the heavy advertising and sudden extension of assortment in the retailing trade. In 2010, the share of the spread consumers accounted for 26.9 % of the population size. Manufacturers use technologies for producing spread, which is maximally corresponds to butter by flavor and consumer properties. In years to come spread with higher content of milk fat is expected to appear on the market. It will guarantee further consumption growth of spread in the retail sector.
Production Volume of Margarine and Spread in the World is Growing
From 2006 up to 2010, the global margarine and spread market was developing dynamically. In this period the sales of margarine and spreads in the world increased by 5.2% and in 2010 it amounted to 8.4 million tons.
Production volume of margarine and spreads in the world is growing, following the increasing demand for the product. In 2006-2010, production of margarine and spreads rose by 1.5%. Top manufacturers of margarine and spreads in the world are the USA, Russia, and Brazil.
Trade of the imported produce accounts for the significant share of the world commerce volume. In 2010, the share of the imported produce trade equaled 36%, and by 2015 it will have reached 39%
Demand for Industrial Margarine in Russia is Increasing
Since 2006 the major sectors of the margarine market in Russia have been demonstrating oppositely directed dynamics: the sector of industrial margarine has had a tendency towards growth, while the volume of the retail sector has been steadily declining. From 2006 to 2009 the volume of sales of industrial margarine increased by 15 thousand tons, while the volume of the retail market reduced by 39 thousand tons. In 2010, sales in the industrial sector dropped, too, affected by the overstocking of the market in 2009. However, the slump in demand for industrial margarine is temporary.
The growth of demand for margarine in the industry is connected with a more global tendency to substitute butter with vegetable oils in the food processing industry. Modern technologies of production of margarine and food on the whole make it possible for producers to cheapen the product, adding vegetable raw materials into them without losing the quality of produce.
In the retail market the situation is different. The presented products are divided into all-purpose (table) margarine and margarine for cooking. From 2006 to 2010 the retail sales of margarine in Russia were steadily declining. The volume of sales of margarine for cooking fell from 226 thousand tons to 203 thousand tons, and sales of all-purpose margarine reduced from 136 thousand tons to 64 thousand tons. The volume of sales of margarine for cooking decreases due to the introduction of instant dough-mixtures, ready-made dough and frozen baked goods to the market. All-purpose margarine is being actively substituted with vegetable oils and spreads (mixtures of butter and vegetable fats) in the kitchen.





