Dairy products are one of the key categories of the Russian food market. In the context of economic instability and changing market demand, it is important to understand how the volumes of production, consumption, import and prices of dairy products are changing. This review provides a detailed analysis of the current situation and forecasts for the near future.
Russian dairy production has demonstrated steady growth in recent years. The main market players are concentrated in the Central and Volga Federal Districts, where the largest farms and processing plants are located.
Milk production in 2023 amounted to about 32 million tons, which is 2% more than the previous year. The main products are pasteurized milk, cheese, sour cream and butter. The situation on the market is due to the introduction of modern technologies that help optimize the manufacturing process and improve product quality.
State support has also become a key growth factor. Subsidies and grants provided to producers help offset costs associated with rising prices for raw materials and fuel. However, problems with a shortage of qualified personnel and an increase in production costs remain.
Dairy imports to Russia remain significant, despite the development of domestic production. The main suppliers are Belarus, Kazakhstan and other countries of the Eurasian Economic Union (EAEU). In 2023, imports amounted to about 7% of total consumption.
Cheeses, butter and powdered milk are the most popular imported goods. Russian producers continue to face competition from foreign brands offering high-quality products at affordable prices.
Sanctions and restrictions on the import of certain categories of goods stimulate domestic production, but also create difficulties for consumers due to a reduction in the range. As a result, the share of foreign brands is gradually decreasing.
The popularity of Russian dairy brands continues to grow. According to the 2023 study, such companies as Domik v Derevne, Prostokvashino and Vkusnoteevo stand out among the market leaders. Consumers associate these brands with quality and affordable prices.
Foreign brands such as Valio and President still occupy their niches, especially in the premium segment. However, their share is declining due to the decline in purchasing power of the population and changes in the market situation.
The volume of the Russian milk market in 2023 was estimated at 700 billion rubles. At the same time, growth was about 4% compared to the previous year. The increase in demand is due to the expansion of the range and the promotion of products with added value, such as functional milk and yoghurts. Dairy products are becoming an important part of the daily diet of Russians. The greatest demand is observed in large cities such as Moscow and St. Petersburg, where the market is actively developing due to the introduction of new trade formats and marketing strategies.
Dairy prices continued to rise in 2023-2024. The average price of a liter of milk increased by 8%, reaching 80 rubles. The main reasons for the price increase include:
Rising prices for animal feed.
Increasing logistics costs.
Introduction of new quality standards.
Butter and cheeses also became more expensive, reflecting general inflation in the food market. It is expected that in 2024 the rate of price growth will slow down due to the stabilization of the economic situation.
Dairy consumption in Russia remains stable despite rising prices. Per capita milk consumption is about 230 kg per year. Pasteurized milk, yoghurts and cheeses are the most popular.
The segment of functional products, such as lactose-free milk, is also showing growth. This is due to the increase in the number of health-conscious consumers. Young audiences prefer products with low fat and sugar content, which is creating new trends in the market.
The dairy market in Russia in 2023-2024 continues to develop despite economic challenges. Increased production volumes, support for domestic brands and changing consumer preferences create favorable conditions for growth.
GRADUS provides up-to-date data on the dairy market, including information on sales, prices and consumer preferences. Analysis based on OFD data and field research allows identifying key trends and adapting business strategies in accordance with changes in the market. The use of accurate data is becoming an important tool for maintaining competitive advantages and making informed decisions in an unstable economic situation.
