This report provides the results for the Spirits 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 Spirits 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 Spirits 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 proportionally to 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. Brandy, Whiskey, Rum, Gin and Genever, Vodka, Tequila and Mezcal, Specialty Spirits, and Liqueurs are not considered essential items and therefore consumption patterns have been negatively affected. 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: Brandy, Whiskey, Rum, Gin and Genever, Vodka, Tequila and Mezcal, Specialty Spirits, and Liqueur.
- 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
- Consumer segmentation based on wealth reveals that the Moderate Income wealth group has the largest value share in the Spirits market in Russia. This suggests that there is a large consumer base for mass market products.
- Consumption frequency analysis reveals Russians have a low preference for Whiskey. Overall penetration remains below 50% across all age groups, with consumption declining as consumers get older. Furthermore, significantly more men than women consume Whiskey, though the number of Heavy users is similar in both genders.
- Tequila and Mezcal consumption declines as consumers get older, suggesting producers should target consumers in younger age groups, which also feature the highest number of Heavy users.
- Market valuation reveals that Vodka accounts for the majority of the Spirits market in Russia, encompassing around 70% of the market, followed by Speciality Spirits and Brandy. Tequila and Mezcal is the smallest selling segment.
- Private labels accounts for over 50% of the Russian Specialty Spirits market, a very high penetration rate. This success isn't replicated across other Spirits categories, where the highest penetration is 8% in Brandy.
- The Russian Spirits organized retail market is fragmented, with Metro Group leading the field with 15% market share. However, retailer concentration is expected to increase as the Russian market matures.