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Market News

Demand for Mayonnaise in Russia Increased

In 2006-2010, according to BusinesStat estimates, supply of mayonnaise on the Russian market went up by 13.3%. Supply growth was caused by increase in the domestic production of mayonnaise in Russia. In 2006-2010, the production growth of mayonnaise was influenced by several factors. First of all, focused route-to-market efforts for brand produce (including TV spots) should be mentioned. It accelerated the saturation process of the consumer market. The other factor was expansion of the product range of mayonnaise of middle and low quality. It has also heightened the consumer interest.

Supply dynamics repeats the dynamics. In 2006-2010, demand for mayonnaise in Russia increased by 69.5 thousand tons. In 2001-2015, rates of growth of the mayonnaise market will be gradually going down. The mayonnaise market is close to being saturated. Mayonnaise is a bulk product, therefore the beginning of the stagnation phase will be indicated by the high market entry barrier. By 2015, almost 93% of the population will have become the mayonnaise consumers.

The main mayonnaise competitor is sour cream.  However, cost of the primary sour cream in the dairy product industry is high, therefore the retail price for sour cream toward mayonnaise is significantly higher.

Global Market of Mayonnaise Was Dynamically Developing

From 2006 up to 2010, the global market of mayonnaise was dynamically developing. The sales volume of mayonnaise was rising by 1.5-3.8% during this period, and in 2010 it amounted to 24.4 million tons. Besides, even in 2008-2009, the crisis affected the global mayonnaise market slightly.

Mayonnaise production in the world is increasing, following the growing demand for the product. The production volume of mayonnaise in the world went up, and in 2010 it reached 26.0 million tons. In 2006-2010, annual production growth amounted to 1.7-4.4%. The top manufacturers of mayonnaise in the world are China and the USA.

In most of the countries the domestic production almost absolutely meets demand for mayonnaise. In 2006-2010, trade of the imported produce in the world did not exceed 8%.

According to BusinesStat estimates, in 2011-2015, this rate will go down.