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Russia is Europe’s third largest consumer market by turnover, behind only Germany and France. Russia’s domestic food processing industry and developing food retail sector contributed significantly to the economy. In 2019, revenues from Russia’s food and drink processing sectors reached 102.4 billion USD. The Russian retail sector has been developing rapidly in recent years. Market concentration is moderate. According to the latest figures from USDA Foreign Agricultural Service, in 2018, the share of top ten largest retailers accounted for 32 percent of the food market. Nevertheless, there is strong competition as costs are high and profit margins are low. In 2019, the turnover of Russian food retail industry grew by 1.4 percent and totaled $223.9 billion (16,120.8 billion rubles). Russian consumers are increasingly buying food and drinks via the internet, especially in big cities. According to Euromonitor, food and drink internet retailing grew 20 percent in 2018, to reach $736 million (46.4 billion rubles) and is forecast to reach $1.8 billion (115 billion rubles) in 2023.
Well-organized distribution channels have developed significantly over the last few years, particularly in the major population centers of Moscow and St. Petersburg, and have started to expand to the regions. In the consumer sector, there are large-scale retail stores in Moscow that are able to buy in bulk. Shopping malls and big box stores are common sights in St. Petersburg, Moscow, and many other Russian cities. By employing the domestic distribution organizations, the task of bringing goods to market in Russia has been greatly eased.
The Russian market can be segmented as follows :
In 2019 the top grocery federal retailers by sales turnover are:
Accreditation fees for representative office are as follow:
Accreditation with Russian Chamber of Commerce an Industry: RR 3,000 plus USD 1,500 for a year, USD 2,500 for two years or USD 3,500 for three years.
Accreditation with the State Registration Chamber: RR 35,000 for a year, RR 65,000 for two years and RR 85,000 for three years. For more information, please visit the State Registration chamber website.
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Latest update: June 2022