The Russian Soft Drinks Market: What Consumers Drink and Why?




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Product Synopsis

This report provides the results for the Soft Drinks market in Russia from Canadean's unique, highly detailed study of consumers' Consumer Packaged Goods (CPG) consumption habits, and forms part of an overall series covering all CPG product markets. Its coverage includes, but is not limited to, consumption behaviors, the extent to which consumer trends influence their consumption, the value of the market these trends influence, and brand and private label choices as well as retailer choices in organized sector. Much of this information can also be analyzed by specific consumer groups, providing hard and fast data on consumers and markets at the product category level.

Introduction and Landscape

Why was the report written?

Marketers in the Soft Drinks market face a major challenge. Understanding market size and segmentation is valuable, but the key to effective targeting is knowing just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends. This data report solves these problems by providing survey-based data on consumer trends and consumer groups, and market data that shows the exact size of consumer groups, how much of the Soft Drinks market they account for, and which consumer trends drive their behavior.

What is the current market landscape and what is changing?

As consumer confidence increases with economic recovery, consumer trends will be directly affected. Since the global financial crisis of 2008-2009 the organized retail market has been characterized by an increase in the amount of discounted and own-brand products. Consumers have traded down in more essential product categories such as Bottled Water and Juices, while consumption has declined in product categories such as Sparkling Soft Drinks, Concentrates, Functional Drinks, Smoothies, and Ready to Drink products. However, the Russian economy has recovered relatively quickly, and as economic and market recovery continues over 2012, consumption patterns will record a positive trend in both the medium and heavy frequency bands and the amount of non-users should decrease.

What are the key drivers behind recent market changes?

Consumers' uptake of products and the influence of consumer trends are fundamental causes of change in markets - making knowing what these trends are and the extent of their influence crucial. The survey-based data provided in this report examines over 20 consumer trends that affect the market and examines the share of consumption across 26 consumer groups. This data provides a detailed insight into exactly who the consumer is and just how much impact the latest consumer trends are having.

What makes this report unique and essential to read?

The data provided is unique in the market as it tracks consumer behavior through to its actual value impact on a product market. This provides readers with a unique data analysis of the market, allowing marketing tactics and strategy to be updated in line with the very latest consumer behaviors.

Key Features and Benefits

  • Consumer data, based upon proprietary surveys and then consumer group tracking and modeling for the following specific categories: Bottled Water, Sparkling Soft Drinks, Concentrates, Functional Drinks, Smoothies, Juices, and Ready to Drink Tea and Coffee.
  • Detailed consumer segmentation covering over 26 consumer groups, 20 consumer trends, and consumption frequency for each product category.
  • Consumer penetration for brands and private labels, based upon the original survey and then subsequent consumer tracking and modeling
  • Unique retailer choice data at the product category level in organized sector, based upon the original survey and then subsequent consumer tracking and modeling.

Key Market Issues

  • Overall Functional Drinks penetration is low and consumption frequency across age groups is mostly Medium or Light. The low numbers of Heavy users limits the category's profitability.
  • More women consume Smoothies than men in Russia, although the proportion of consumers in both genders that are Heavy users is virtually identical. This indicates that the health trends driving Heavy Smoothies consumption affect men and women equally.
  • Ready to Drink Tea and Coffee consumption among Older Consumers is mostly Medium or Heavy, with little Light consumption. This indicates that casual consumption is low, with habitual consumption the norm among users.

Key Highlights

  • Indulgence and Better Value for Money are the two most important trends affecting consumers' choice of Soft Drinks, indicating that while consumers value quality, they are still very aware of its cost.
  • The Russian Sparkling Soft Drinks market is characterized by low overall consumption across all age groups, with low or no consumption accounting for the majority of the market. This indicates that there is strong potential in the Russian market for products able to transition non-users of Sparkling Soft Drinks into users and increasing the consumption frequency of current users.
  • Bottled water consumption frequency analysis indicates that there is a significant proportion of Heavy and Light users across all age groups, with little Medium consumption. This indicates two clear consumer segments: convenience consumers, who occasionally consume Bottled Water when other alternatives such as tap water or other Soft Drinks aren't an option, and loyal consumers, who value Bottled Water as a product.