Which retailers Russians prefer, for which products they are willing to overpay, and how sales of functional products increased, said Elena Korolkova (Nielsen).
About 80% of consumers choose products for a healthy diet, but less than half believe that their needs can be satisfied with the current offer. Elena Korolkova, head of the key client group at Nielsen, shared such data within the business program of the Metro Expo 2019 exhibition.
According to analysts, 37% of Russians are eager to lose weight, another 84% have changed their diet in favor of a healthier one. Of them:
- 53% reduced fat intake;
- 65% reduced sugar intake;
- 67% began to eat more fresh fruits and vegetables;
- 62% choose a diet to prevent certain chronic diseases.
“Now the source of growth in the FMCG market is not the top 10 manufacturers, but, on the contrary, small local brands. This is especially true in categories such as dairy products. Increasingly, customers are choosing retail chains, where a wide range of products for healthy nutrition is presented”, noted Mrs. Korolkova.
The expert cited as an example the network “VkusVill”, which initially sold only dairy products under its own brand “Izbenka”. However, now their stores have grown from a small format to supermarkets, where not only products are sold, but also household chemicals. According to the expert, all retailers that were previously narrowly specialized, are now moving away from the original concept, expanding the range to satisfy the consumer’s need to buy everything in one place.
Superfoods, vegetarianism and fitness
The sports industry is growing from year to year: according to Rosstat, in Russia the volume of paid sports services amounts to 0.8% of the total services market. Among people under the age of 29, about 70% regularly go for sports. Among people aged 30-60, every third attends sports activities.
According to the survey, in Russia about 4% of the population adheres to vegetarianism. For comparison: in England this figure reaches 15%, in India - 35%. There are a number of barriers in the Russian market that impede the development of this diet:
- high price,
- the inaccessibility of fresh fruits and vegetables for a number of regions,
- climatic limitations.
Against the background of these trends, the demand for superfoods as goods with a high content of nutrients is growing. According to the Nielsen survey, 67% of people are willing to pay more for superfood. In Russia, about 34% of consumers believe that superfoods can be an alternative to the prevention of chronic diseases. In the world, this figure is almost twice as high (65%).
The growing popularity of this trend for a healthy lifestyle leads to the fact that 80% of Russian buyers would like to see more natural products on the shelves: 62% choose retailers based on their range of products for healthy eating. About a third say that the application on the package “natural” or organic is an additional incentive to purchase.
“But if you look at the market realistically, then we see that one of the most growing categories is snacks. 62% of consumers perceive them as a quick snack or alternative to breakfast. 50% consume snacks to increase energy. Among them, the largest increase (+ 99%) is shown by protein bars, which are perceived by consumers as functional nutrition. Sales of slimming bars increased by 4%, and sales of fruit bars, which consumers consider to be healthier, increased by 19%, said Elena Korolkova.
Water has the highest growth.
Juices occupy about a third of the entire beverage market in Russia. However, in recent years, this segment either falls or stagnates, as the consumer switches to other beverages. “In the segment of juices, only natural juices show growth”, noted in Nielsen.
At the same time, consumption of bottled water has been growing for the first year. Last year, this segment grew by 14% in money and by 13% in liters. According to experts, the drinking water market has a huge potential for development in Russia, since our country lags far behind Europe in terms of bottled water consumption, per capita per year:
- Western Europe – 125 liters,
- Eastern Europe – 57 liters,
- Russia – 29 liters.
“In the group of sugary carbonated drinks, there are opportunities for growth in drinks without sugar. Now there are a lot of such products that are perceived as more healthy”, added Mrs. Korolkova.
New trends in consumption
According to experts, such categories as granola (+ 92%), vegetable milk (+ 40%) and herbal tea (+ 24%) showed a significant increase last year.
“Soy milk is perceived by Russians as a product for healthy nutrition. In addition, it is suitable for food during Orthodox fast. So far, vegetable analogues occupy about 1% of the milk market, and every year the distribution of this product is growing: there is at least 1–2 SKU milk substitute in every store. Accordingly, every year this segment will show growth”, say Nielsen.
In addition, according to experts, this year it is planned to increase real incomes of the population. Thanks to this, people will be able to buy better products.
Not only eco, but also simple are global trends
The global consumer worries are not only about himself, but about the world. This is reflected in the growing demand for organic products. Under them means products with biodegradable packaging, products that are not tested on animals and comply with the principles of fair trade.
According to Elena Korolkova, the growth of eco-products in the United States is already ahead of the growth of the FMCG market as a whole. Consumers understand that eco or healthy products are goods without artificial additives. If the consumer does not see a huge amount of ingredients in the composition of the product, then he automatically perceives it as more healthy.
They also distinguish the category of simple are products that consist of less than ten ingredients; and environmentally friendly products. These are products that satisfy the principle of caring for the environment. According to experts, this segment is growing by 2–4% per year.
According to Nielsen, organic products are on average 25% more expensive than regular ones.