Analysis of the food market. Overview of the Russian organic food market
What does the Grocery Online Retail market look like in the West and what are its specifics in Russia?
Western statistics
According to surveys, 36% of consumers plan to shop for groceries online in 2018. This is 14% more than the previous year and 24% more than three years ago.
One of the significant factors that influences the desire to make purchases online is the banal opportunity to make such purchases provided by the store itself.
In 2017, every fifth customer did not buy products online simply because the store did not have the appropriate option.
Home delivery is the most popular option among online shoppers, but statistics show that you still need to give your customers a choice.
So, 78% of users did not make purchases online. But why? Researchers identify several key reasons:
- 41% - "I like to go to the store every week";
- 36% - "I don't want to pay more";
- 33% - "I don't like that someone else collects / chooses my food";
- 25% - "The local store does not offer such an opportunity";
- 11% - "I was going to, but did not find the time."
In 2017, the vast majority of those who made a purchase online did so at least once. And more than half do it at least once a month.
This suggests that, as a rule, one purchase is enough for a customer to appreciate all the benefits and convenience of online stores. Most online stores that offer a user-friendly interface and comfortable user experience in general easily turn a casual shopper into a regular one.
However, if the delivery service is not convenient enough, it will definitely affect sales. So, 76% of buyers said that they would change the online store if it did not provide a comfortable enough user experience. And this is not the only reason why a buyer may go to competitors. The researchers identified five more:
- 65% - "There are more coupons and offers in another store";
- 58% - "Other store has lower shipping costs"
- 40% - "Delivery is faster in another store";
- 36% - “Personal offers are available in another store”;
- 35% - "Another store has a weekly ad that helps me build my shopping list."
And, if we talk about the amenities provided, then the customers of online stores have already developed certain preferences. Most of all, in such services, they value the following things:
- 34% of customers will switch stores if they can't communicate with the person picking up their order while they're shopping. Moreover, 51% said they want to be able to communicate with the "collector" in real time.
- 56% of customers would like a seller to offer a replacement if the selected item is out of stock. 52% - so that he offers goods at a discount or special offer.
- 55% would like to know when an order is ready via a real-time conversation, 63% would like the place to pick up their order in the store to be clearly marked, and 52% would like to be able to check the order at the pickup point.
And finally, the researchers created a portrait of a customer who will make purchases in 2018.
Specifics of the Russian market
The domestic market is significantly inferior to the Western one. Thus, according to the report of the Association of e-commerce companies, e-commerce of products is only 2% from the Russian e-commerce market.
However, there are reasons to believe that significant changes await this sector in the future. Hope for this, first of all, is given by the fact that Russia is adopting Western trends belatedly. According to the consulting company PricewaterhouseCoopers, 14% of Russians have tried to buy food online at least once, and this number is expected to increase in the near future.
Secondly, experts believe that online product trading in the next few years will be the most profitable direction for investment in Russian eCommerce. According to forecasts, this is the only segment of online trading that will increase turnover in 2018.
From the reports of the investment bank UBS, it follows that eCommerce in Russia used to grow at the expense of non-food products. But in 2018-2022, the growth in sales of non-food products will slow down to 14.7%, and the eCommerce product market will see a strong increase (up to 26.1%). The forecast shows that in five years the share of online product sales in all eCommerce will grow. up to 3.3%.
Although these are only forecasts, we can already talk about the prerequisites for the growth of this segment. Already in the first weeks of 2018, Russians began to order food online more often. Observedincrease in the number of orders in pizzerias (+30%), restaurants (+31%) and food delivery services (+40%).
But if we are talking about the online sale of groceries, and not orders of ready-made meals, then here, too, a specific portrait of the Russian consumer begins to form. Study marketing company Nielsen revealed statistics on how potential customers behave in the field of shopping products online:
The main representatives of online food trading in Russia
| Delivery of products | Ready meal delivery | ||
| Name | Founded | Name | Founded |
| "Platypus" | 2000 | 2009 | |
| Da Mart | 2011 | "Bring.ru" | 2011 |
| "At HomeTastier" | 2013 | "Chef Cook" | 2012 |
| "Globe Gourmet" | 2013 | ZakaZaka | 2013 |
| Metro | 2013 | "Milty" | 2016 |
| Auchan | 2014 | "I would eat" | 2017 |
| "OK" | 2015 | told that the market lacks logisticians who could deliver products in compliance with sanitary standards, taking into account temperature zones and other important factors for the industry.
Representatives of the CDEK courier service explain that food is a niche, not a universal topic. This type of delivery has many different requirements and conditions, and most logistics companies are simply not adapted to such work. This explains the lack of proposals on the market. Director General of LED agency Leonid Dovladbegyan believes that since dead center online trading can be shifted through the lifting of the ban on the remote sale of alcohol. Recently the Ministry of Health blocked bill on the sale of alcohol on the Internet, but, according to Dovladbegyan, only this can significantly stimulate sales. Another problem is the "growing up" of potential buyers. The older generation, for the most part, has not gone through the stages of digital evolution, and is either not ready or does not know how to make online purchases. The generation that is ready for such actions has only grown up - and in the near future all adults will be ready for such technologies. Another disadvantage of the Russian market is technological underdevelopment. In the West, so-called smart speakers (or smart speakers) are becoming a trend: this is a device that is controlled by voice and allows you to make lists of tasks, turn on music, set alarms - and, of course, shop. A 2017 study found that one in five respondents owned such a column, and this number will increase by next year. At the same time, 29% of smart speaker owners made purchases using it. However, no similar Russian service offers interaction with such innovations. findingsRussian market online sales of products is at the very beginning of its development. However, many experts already say that this will be the cornerstone of eCommerce development in the country in the coming years. The boldest forecasts foreshadow the death of the classic grocery retail market, which will finally be replaced by online. But on the way to this, Russian online hypermarkets face quite a lot of problems, the solution of which they must deal with. | |
Why sellers do not have documents for fish and where to complain? Our correspondent figured out how to check the quality of food
Photo: Alisa TITKO
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I went to inspect the markets after I came across a dispute on social networks - they say that all sellers in the markets violate the law. As a rule, they do not have documents for products, it is impossible to check the quality of the goods and off they go.
DOROGOMILOVSKY MARKET
The Dorogomilovsky market is popularly considered the most sophisticated. All year round strawberries are sold here, tangerines are delivered here first of all - and it does not matter that it is five times more expensive. The famous market can be reached in 14 minutes on foot from Kievskaya metro station. Ahead you can see the towers of Moscow City, and near a healthy hangar they are unloading a truck. This is the market. The interior decoration is depressing. Old counters, painted walls...
Sellers are invited to evaluate their goods: “Girl, approaches. Peaches, strawberries…” I choose the fish counter.
- Where is the fish from? I ask.
Kamchatka, - answers.
- What about red caviar?
- Do you have any documents?
Not right here, - the excitement of the seller immediately disappeared. - Come tomorrow - I'll show you. Today it was just until three o'clock.
With open arms, they called me to every counter, but when it came to documents, they tried to send me out as soon as possible. The sellers did not like the questions: “Why are there no price tags on the product?” They answered only one thing: “This is the market. Let's agree." The hype about me ran through the market quickly, and a few minutes later a security guard came up with a seller who asked me to leave the market, not to ask incorrect questions and not to take pictures of the windows.
Finally, I decided to take an interest in jars of pickles.
- Your preservation? I ask the seller.
Home. All own. We ourselves close in the suburbs, - the woman answers.
Does cloudberry also grow in the Moscow region? - I'm surprised. - Why are there no markings on the bank: where is it produced, by whom, when? By the way, you have a mistake on the "maroshka" bank. Fix it.
BUTYRSKY MARKET
At the Butyrka market, they also became nervous when I asked for documents for red caviar. Indeed, they found it. And even the veterinary conclusion was shown. But then a live sterlet and grass carp sailed from nowhere. While the fish was floundering in the aquarium, the sellers made excuses that there were no documents for it. Fruits and eco-honey also entered the market in unknown ways. But the sellers had medical certificates for pickles, but two months ago.
- Can cucumbers be stored for two months? - I'm surprised.
They are barrel.
- But they are in the window in the open.
USACHEVSKY MARKET
Here the service starts from the entrance - there is a place where you can tie a dog, there are containers for separate collection of garbage, a machine for paying for parking. And here you are in gastronomic paradise. Without obsessive "hey, girl, come here" is not enough. But the choice is worthy - burrata from private cheese factories, horse sausage, fresh shrimp, mountains of fruits and vegetables. Young couples and families dine at wooden tables. Someone orders freshly prepared sushi, and someone is served nettle cream soup and Shanghai eggplant. The theme of food courts adds interest to the market itself.
- Do you buy products for making pizza right here in the market? - I'm interested in one of the food courts.
Not all products. We buy pears, milk. In general, it's a little expensive here, - the seller admits. - And we buy the same chickpeas in another place, because there are small deliveries - we need more.
At the very first fishing point, I was shown documents for chinook salmon and sockeye salmon. Moreover, the seller praised me, saying that I was doing the right thing, that I was checking the quality. It was more difficult with caviar, but they also showed me papers from the market laboratory. In one of the cheese shops, the seller thought that I wanted to spy on suppliers and set up my own business.
- And why do you have a cheese delivery date already in December? - I'm nitpicking.
Because then they received a large batch from the Tambov region, and the expiration date was 10 months.
But with vegetables here is a mess. The seller called the same tomatoes either suburban, Uzbek, or Turkish. The seller promised to show the documents tomorrow. Somewhere I've heard this before. It seems that some entrepreneurs moved here from the Dorogomilovsky market. The seller of dried fruits was generally ready to give dried apricots to me at a 50% discount, so long as I did not ask about the documents. And after all the persuasion, I was able to show only a self-adhesive label on the box. Pickled cucumbers also turned out to be illegal. The seller got out to the last, calling them either Ryazan or Dagestan, but she did not find any certificates. While the sellers calmly provided documents for eggs and meat.
DANILOVSKY MARKET
I dare to call only the Danilovsky market exemplary. Although there are still questions to some sellers. Food courts with Indian salads, Uzbek flatbread, Peking duck, Korean fried dumplings are located in a circle on the first and second floors. I decide to try the vaunted Vietnamese pho soup, for which a rather big queue lined up. A huge portion of soup with noodles and beef is only 350 rubles. The same price for a cocktail of freshly squeezed mango juice with milk. Everything is thought out - there are comfortable tables nearby. If you wish, you can bring a tray to the second floor - there is generally a beautiful view of the busy market.
AND WE HAVE A MORATORIUM
How to check the quality of food in the markets of the capital? AT Rospotrebnadzor in Moscow, Komsomolskaya Pravda was told that there is a state moratorium (temporary restriction) on inspections of private traders who rent places in the markets. But after complaints from customers, an unscheduled inspection is always organized.
The buyer must be registered on the portal public services RF, only after that leave a complaint to in electronic format- explained in Rospotrebnadzor. - Or you can contact the address of the Office, or send a written request by mail, or by making an appointment in person.
In the appeal, it is important to indicate where the goods were purchased (address of the enterprise, manufacturer, production date, other information about the seller and the product), as well as your coordinates.
And buyers often complain, and Rospotrebnadzor understands all the shortcomings.
The main violations in the markets are related to the lack of a seller's card (badge) on trading places ah, inconsistency in the placement of trading places with the scheme, violation of the conditions for storing products, the unsatisfactory condition of utility warehouses, the lack of sheds for storing solid domestic waste, and the failure to carry out disinfection measures in full. For violations of the requirements of sanitary legislation and legislation in the field of consumer protection, the perpetrators are brought to justice. administrative responsibility, - said in the department.
IMPORTANT!
When buying products at the market, "weekend fairs", pay attention to the seller's neatness and proper storage conditions for products;
It should be remembered that raw products (meat, fish, eggs, vegetables and fruits) and processed foods should not be sold together with ready-to-eat products;
Perishable products (meat, fish semi-finished products, dairy products, cream, confectionery) should be stored in a cool place, and frozen - separately from chilled ones;
The seller must not take unpackaged and unpackaged goods by hand, weigh products on scales without packaging or wrapping paper, and must hand over the goods to you in packaging;
If you buy goods in industrial packaging, check its integrity;
Carefully read the information on the label, which should include: manufacturer's address, information about the packer, exporter and importer of the product, name of the country and place of origin, expiration date, production date; net weight, volume and quantity of products; nutritional value (except for alcoholic products, coffee, tea); storage conditions; designation of technical regulation, GOST or specifications, according to which the product is manufactured and can be identified; information on certification (declaration) of a food product or compliance with the requirements of regulatory documents;
Agricultural and home-produced products can be sold in the markets only with permits and under the control of the state laboratory of veterinary and sanitary examination, which is carried out in each market. In case of doubts about the quality of the products sold, the buyer has the right to seek clarification from the above-mentioned laboratory.
Overview of the Russian Healthy Food Market
Research of the consulting company "Foresight 24"
The growth of the healthy food market is a direct consequence of changes in consumer behavior patterns. A recent study by Deloitte showed that the traditional criteria for consumer choice in the food market - price, taste and quality - are now inseparable from new group criteria - health and healthy lifestyle (health & wellness), safety and transparency (consumers want to know what they are consuming). A healthy lifestyle is becoming not just a trend, but a lifestyle all over the world.
The Russian market, following the markets of other countries, begins to actively move towards new consumer needs, which are formed under the influence of various factors.
In a row key factors- an increase in the incidence of the population, which stimulates the demand for food products for the prevention of various diseases and for medical nutrition (Fig. 1).
According to the Nielsen global survey, 67% of consumers in Russia actively monitor their diet to prevent various diseases, and 39% of respondents limit the amount of sugar and fat in their diet. Changing dietary habits has a direct impact on purchasing behavior. Thus, 74% of Russians carefully study the composition of food and drinks before purchasing them. At the same time, about 70% of Russians declare their willingness to pay more for products that do not contain unwanted elements.
An important role is played by the growing popularity of sports and a healthy lifestyle in big cities. At the same time, active promotion of a healthy lifestyle and support for sports are carried out at the state level.
The speed of urban populations is increasing, leaving less and less time for cooking and eating, which stimulates the demand for quick and healthy snacks.
The services of nutritionists and professional fitness trainers for weight loss and weight control are gaining popularity.
Finally, a significant factor influencing the change in consumer behavior is the vigorous activity of manufacturers in the field of R&D (Research & Development) * and promotion innovative products supply, which allows them to generate demand and lure consumers away from competitors.
If a few years ago it was possible to speak only about individual healthy products or niches in the Russian food market, today “healthy trends” have penetrated almost all product categories. This situation is fully consistent with the trends of foreign markets, where today there is a boom in demand for health & wellness products, which include the following groups:
* healthy snacks that have already stepped over from the category of muesli bars into a separate large product category, which includes a whole range of snack foods (including drinks): for example, fruit and nut mixes TM Brainfoods (OOO Brainfood Moscow), protein bars TM Bionova (LLC NovaProduct AG, Moscow), cookies with cereals TM Khlebny Spas (LLC KF Khlebny Spas, Moscow) and others;
* products enriched with vitamins and fatty acids: for example, chicken egg TM Extra Omega-3 Active (JSC Roskar Poultry Farm, Leningrad Region) or chicken egg TM Sinyavinskoe Effect with selenium (CJSC Sinyavinskaya Poultry Farm, Leningrad region.);
* Products enriched with probiotics and prebiotics: for example, a dry mix of TM "Resurs Optimum" with pre- and probiotics (LLC "Nestle Russia"), nectar TM "J7 Tonus" with prebiotics (LLC "PepsiCo Holdings"), yogurt TM "BIO -balance" (Danone in Russia Group of Companies) and bio-yogurt TM "Useful Products" with probiotics (CJSC "Sernur Cheese Plant", Mari El);
* bread and bakery products containing nuts, seeds, dried fruits, peeled rye flour, bran, whole grain flour and others: for example, bread TM Hercules (JSC Khlebny Dom, St. Petersburg) or bread TM Harry's with bran (LLC " Harris CIS, Moscow region);
* products “without …”, that is, not containing sugar, preservatives, gluten, lactose, artificial colors and flavors, including clean label products: for example, sugar-free protein ice cream TM Prolce (LLC "Qualitative Products", St. Petersburg), sugar-free ice cream with honey TM Chistaya Liniya (Chistaya Liniya LLC, St. Petersburg), gluten-free amaranth bread TM Di&Di (D&D Corporation LLC, St. Petersburg), ketchup TM Mr. Ricco Pomodoro Speciale (JSC Nefis-Bioproduct, Tatarstan), lactose-free milk ТМ Valio Eila (ООО Valio, St. Petersburg) and lactose-free ice cream TM Ice Cro Vegan (ООО Il Mio Morozhenko, Moscow);
* products with a reduced sugar or fat content: for example, TM Gallina Blanca broth with a reduced salt content (CJSC Europ Foods GB, Nizhny Novgorod region), TM Calve Light mayonnaise (OOO Unilever Rus, Moscow), TM cheese "Karat Domashniy light" (OJSC "Moscow plant of processed cheeses "Karat");
* foods for vegetarians, vegans and raw foodists, the number of which in Russia is increasing every year (according to Mintel Global Food and Drink Trends 2017, the number of vegan food and drinks in the world in 2016 increased by 257% compared to 2012) ;
* vegetable products with a high concentration of nutrients, or superfoods, which are still not very popular in Russia (goji berries, quinoa, chia and others);
* food products with seaweed (for example, kelp noodles, which replaced traditional wheat noodles), which are gaining popularity abroad: seaweed nori chips TM Sen Soy (LLC Sostra, Moscow region) or chips TM Fine Life (STM LLC "Metro Cash & Carry") from nori seaweed with olive oil;
* Drinks that replace traditional coffee: for example, the “golden” anti-inflammatory latte drink with turmeric, coconut oil, ginger, black pepper, cinnamon, honey and unsweetened plant milk;
* sports nutrition for mass consumption, and not just for professional athletes;
* organic products produced without chemical fertilizers, herbicides, pesticides, as well as GMOs, dyes, stabilizers, thickeners, replacement of milk fat with vegetable fats and the like: for example, products of TM "Urbech" (LLC "Live Product", Dagestan), Ecor (EcorNaturaSi Spa, Italy), Geo Goods and Fitnessier (Geo Goods LLC, Novgorod region);
* fermented foods that are good for intestinal health and digestion (miso, kichi, sauerkraut and others);
* herbal products, which are still practically not represented in Russia, but, according to a new study from Technavio, are among the top three key trends in the global healthy food market, along with the growing demand for probiotic, natural and functional products and consumer interest in innovative packaging.
Despite the above classification, today in Russia and abroad there is no common understanding of which types of products belong to the healthy food market. This is primarily due to the fact that the dynamic development of the market annually leads to the emergence of new types of products. In addition, all market participants recognize that one of the significant difficulties is the lack of an unambiguous understanding of the term "healthy diet" and state regulation market in matters of its certification. Based on this, it is extremely difficult to reliably assess the size of the Russian market for healthy food products.
A review of the range of products for a healthy diet allows us to distinguish two fundamentally different groups, the development of which in the future will go in parallel:
1. traditional food products (industries) responding to changes in consumer behavior patterns with new products based on the usual assortment (for example, bread, yoghurts, confectionery and others);
2. "healthy" food products, that is, new products that are developed specifically for the needs of the target audience (for example, protein bars for athletes, diabetic products, and others).
Products for a healthy diet are located in the middle and high price segments. The use of natural ingredients (including flavors, preservatives, dyes, extracts, high-quality sublimates, etc.), enrichment with vitamins and microelements, special production technologies and innovative packaging lead to the fact that the cost of such products is sometimes 1.5–2 times more than the price of "simple" analogues. For example, this is very noticeable in the market of dairy products and bakery products.
It is important to note that the crisis and sanctions have become an engine for Russian manufacturers – every year more and more domestic products for a healthy diet appear in different categories, which are a worthy replacement for imported ones. However, it is important to note that foreign manufacturers localized in Russia (Mars, Nestle, Danone and others) remain the flagships of this market. They are the first to bring new products to the Russian market (for example, Activia Drink & Go from Danone).
As the results of observations of the dynamics of the penetration of foreign product trends into the Russian market in 2013–2017 show, they appear with a delay of 1–3 years.
Today's consumers want to know what they are eating. One of the ways to gain trust is the constant confirmation by producers of the naturalness and quality of their food products (the formation of “transparency” of brands).
New tools for confirming the quality and naturalness of products are entering the arena, including mobile applications such as Shopwell, Open Label and the Smart Label platform, which make goods and supply chains “transparent” to consumers (block chain technology).
This approach is already used in Russia the largest producers dairy functional products, thereby emphasizing its naturalness and usefulness. For example, buyers are given the opportunity to track which farm the milk came from, production procedures are explained, and the usefulness of products is confirmed based on the results of scientific research.
Today, brands need to have simple and very obvious characteristics that consumers can verify and that do not require lengthy explanation and description (so-called anti-authentic marketing). Today in Russia, this trend is increasingly being used by small farms that offer their customers packaged short-term storage products. Another example is the appeal of manufacturers in their marketing activities to GOSTs, which orient buyers to the level of quality and composition of products, and also cause an associative connection with the times of the USSR, when there were practically no “harmful” food products on the market. This approach is implemented by manufacturers of sausages, ice cream and other products. On the same wave, small producers offering food products have good chances to enter the market. handmade made according to old time-tested recipes (craft beer, handmade chocolate, homemade sour cream and others).
Another trend is a global movement towards a healthy lifestyle and naturalness. In addition to health & wellness, healthonism and weight management come to the fore. Healthonism (from health - “health” and hedonism) is a trend associated with the desire to combine the consumption of food that is enjoyable with health benefits (for example, alcohol with antioxidants, low-sugar foods, “healthy” fast food and others) . Weightmanagement is a weight management system that involves comprehensive work to reduce or control weight. Part of this work are various mobile offers manufacturers whose goals are not only direct communication of companies and brands with consumers, but also informing them about the benefits and methods of preparing and consuming food. Examples include European applications Danone insiDe, Unilever, Activia VIP, Nestle and others.
Finally, the expansion of the range of healthy food products allows you to allocate space for products for a healthy lifestyle, "collections" of products for cooking certain dishes, farm products and more, thereby greatly facilitating the selection process for consumers. In Russia today, this approach is practically not found.
The trends listed above require Russian enterprises, working or planning to enter the healthy food market, the following actions:
1. constantly "keep abreast" by analyzing the Russian and foreign markets, the actions of competitors and suppliers, scientific developments and patents in the field of food products, consumer behavior and related markets, and constantly look for ideas to develop new products;
2. Establish ongoing feedback with your customers using social networks, focus groups and more;
3. rework existing and develop new food recipes that meet the needs and lifestyle (health & wellness lifestyle) of different target audiences;
4. the taste of the product should be given paramount importance - the times when the useful could not be tasty are a thing of the past;
5. Encourage consumers to try innovative products, emphasizing health benefits and naturalness;
6. The benefit of a certain combination of ingredients, such as probiotic yoghurts with fruit or bran bread, must be clear to consumers;
7. form alliances with ingredient and packaging suppliers who are often the first to know about new market trends;
8. constantly work on reducing the cost of production so that it becomes accessible not only to the middle and high, but also to the low price segment (formation of mass demand);
9. In promotion, focus on breakfast, dinner and snack foods, which are key meals for metropolitan residents. Thus, manufacturers of "light" kefir often position it as a way for a snack and dinner for those who control their weight: for example, kefir product TM "BioMax Light" produced by Wimm-Bill-Dann Foods OJSC or kefir drink "Activia" from Danone;
10. pay attention to packaging, which today must meet a number of requirements:
* be convenient to consume - for example, portion packaging or packaging for consumption on the go (bio + protein "Activia" Drink & Fit by Danone);
* be convenient in storage - for example, a package with a zipper or a package suitable for a microwave oven (chicory TM "Tselebnik" produced by LLC "Slavkofe" (Moscow) and natural milk porridge TM "Svalya" from JSC "Penno Zhvaigzhdes" (Lithuania);
* to be convenient in transportation in open form;
* draw attention and show all the benefits of consuming the product for consumers.
* Research and development work.
To date, the Russian market has appeared quite a large number of food products that have the word "bio", "eco" or "organic" on their packaging. However, these products almost never meet the concept of "eco". At the same time, the cost of products, on the packaging of which there is a corresponding inscription, is higher than analogues (without an inscription) by 20-200%.
Consumers have become hostages of this situation due to the lack of a relevant law on organic agriculture and organic food in the Russian Federation. We also do not have mandatory certification of eco-products. And since there is no law, then manufacturers are free to use these terms at their discretion, which, of course, cannot but disturb buyers - after all, they are actually being deceived.
So, the concepts of "eco", "bio" and "organic" are synonyms that denote environmentally friendly products produced in compliance with the principles of organic agriculture.
According to European and American standards for organic agriculture, the label “organic” (“bio” or “eco”) indicates that at least 95% of the content by weight (minus the weight of salt and water) is organic. The inscription “made with organic” means that at least 70% of the content is an organic product. The inscription is on the front or top of the package, and may be followed by up to three product component names. The label “less than 70% of content is organic” means that less than 70% of the content is organic. However, the package may list the organic ingredients, but the word “organic” may not be used on the front of the package.
BASIC PRINCIPLES OF ORGANIC AGRICULTURE
According to the standards of the International Federation of Organic Agriculture Movements (IFOAM)*, organic Agriculture based on four basic principles, which should be used as a unit.
Principle of health
Organic agriculture must maintain and improve the health of the soil, plants, animals, humans and the planet as a single and indivisible whole. According to this principle, the use of fertilizers, pesticides, veterinary drugs for animals and food additives, which may have an adverse effect on health, should be avoided.
The principle of ecology
Organic agriculture must be based on the principles of the existence of natural ecological systems and cycles, working, coexisting with them and supporting them. The principles of organic farming, grazing and the use of natural systems in wild nature, in order to obtain a crop, must comply with natural cycles and balances. Organic agriculture must achieve ecological balance by designing land use systems, creating habitats and maintaining genetic and agricultural diversity.
The principle of justice
This principle states that animals should be provided with conditions and opportunities for life that are consistent with their physiology, natural behavior and health. Natural resources that are used in production and consumption should be considered from the standpoint of social and environmental justice, taking into account the interests of future generations. Equity requires that production, distribution and trade systems be open, equitable and take into account real environmental and social costs.
The principle of care
The management of organic agriculture must be proactive and responsible in order to protect the health and well-being of current and future generations and the environment.
Summarizing all of the above, we can conclude that the marks "organic", "bio" or "eco" are intended to notify the buyer that the product is grown naturally without the use of chemicals, in an ecologically safe area, where at a distance of 500 kilometers around there is no chemical or other harmful, from the point of view of environmental protection, production.
HISTORY OF THE ORIGIN AND DEVELOPMENT OF ORGANIC FARMING
As an independent area, organic farming began to develop actively since the 1940s in Europe and America, in response to dependence on synthetic fertilizers and insecticides. During the industrial revolution of the 19th century, with the development of agrochemistry, many effective methods soil fertilization and pest control. First it was superphosphates, then fertilizers based on ammonia. They were cheap, efficient, and easy to transport.
During the 20th century, new ways of farming were actively used, indeed leading to increased yields. However, the environmental consequences of the use of these methods became more and more obvious: soil erosion, their pollution with heavy metals, salinization of water bodies.
In 1940, the British botanist Albert Howard, one of the founders of organic agriculture, proposed a soil fertilization system based on the use of compost from plant residues and manure. A natural, but not the least, reason for the emergence of organic farming was the increasingly recognized danger to human health. Now the living conditions in big cities make people think about how to protect themselves from negative impacts urban environment. More than 50% of a healthy lifestyle consists of a healthy diet.
In 1972, the International Federation of Organic Farming Movements (IFOAM) was established with the aim of disseminating information and introducing organic agriculture in all countries of the world. Already in the 1990s, green movements and green philosophy acquired a global scale, environmental protection and concern for the health of their citizens became priority areas of state policy in many countries**.
THE HISTORY OF ECO-FRIENDLY PRODUCTS IN RUSSIA
Ecological farming in Russia originated in 1989, when the All-Union program "Alternative Agriculture" was launched. In two years, the program brought international certification to a number of farms, but ended in complete failure, as the market was not ready for such products.
In 1994, the export of environmentally friendly certified buckwheat to Europe was started, and since 1995 an organic processing plant has been operating in the Kaluga region. Now the farms of the Tula, Orel, Novgorod, Omsk, Pskov, Kursk, Vladimir, Orenburg, Yaroslavl, Moscow regions and the Stavropol Territory are engaged in the ecological production of agricultural products.
Thus, the formation of a market for environmentally friendly and safe products is just underway in Russia. The main reasons for lagging behind the United States and European countries include the lack of a unified concept of environmentally friendly products, the unclear position of the state on this issue, and the low ecological culture of the population. However, consumer demands are gradually forming a separate sector of "village" food on the market. Certifying organizations also appeared (for example, NP Ecological Union, St. Petersburg), which developed their own standards, taking into account both international requirements for organic agriculture and the peculiarities of Russian reality. All this clearly contributes to the development of the organic food market.
The recently established Moscow-based company Chisty Krai is conducting in-depth marketing research demand for environmentally friendly products and is preparing to enter this market. The company establishes links, on the one hand, with independent producers whose product quality meets IFOAM requirements, and, on the other hand, with distribution channels that allow a wide presentation of organic products.
During the period from 2000 to 2010, the global organic food market grew more than 3.5 times - from $ 17.9 to 60.9 billion (rice. 1 ) .
According to IFOAM, the global market for organic products in 2011 grew by about 12% - from $ 60.9 to 68 billion - while the growth of the consumer market as a whole in this period amounted to only 4.5%. If the market for organic products continues to grow, then by 2020 its volume may reach $ 200-250 billion.
MAIN TRENDS IN THE MARKET OF ORGANIC PRODUCTS
Currently, there are several main trends in the development of the Russian organic food market.
The growth of the world organic food market is more than 2 times faster than the growth of the market of non-organic "mass" products.
The fastest growing segments of the market for organic products are "vegetables and fruits", "milk and dairy products". At the same time, the segments "meat, poultry", "bakery products" and "drinks" are growing at a faster pace, but they lag behind the leaders in terms of volume.
Sales of organic products currently still represent a small share of total food sales across the country. different countries– from 0.75% in the Czech Republic to 4.2% in the USA.
Sales growth organic products indicates that consumers are willing to accept additional value. Russians are becoming more and more demanding in terms of food, it is important for them that the products are natural, they do not use genetic engineering in their production, and they do not harm health.
The main channels for the sale of organic products are retail chains(supermarkets, hypermarkets, discounters) - they account for 41% of sales. The share of specialized stores is 26%, while the share of direct sales is 13%.
Growing market demand for organic products is stimulated at the state level - in the US and in countries European Union organic farm development programs are being adopted, and certified eco farmer training programs are emerging at many universities and colleges.
DEVELOPMENT POTENTIAL OF THE RUSSIAN MARKET OF ENVIRONMENTALLY FRIENDLY PRODUCTS
Russia is 15-20 years behind developed countries in the production of eco-products and eco-services, and the volume of the domestic market of organic products, according to IFOAM, is only $60-80 million, or about 0.1% of all food products.
At the same time, in Russia there is a steady upward trend in sales of organic food. Thus, over 5 years it has grown more than 1.5 times - from 30 million euros in 2007 to 50 million euros in 2011.
The potential of the Russian market is estimated quite highly: according to experts, by the end of 2013 it may grow by 25-30% - up to $100 million.
In Russia, there is a problem with the designation of the boundaries of the market for organic agricultural products - there is no single law that would establish which products should be classified as organic and which should not. Also no and unified system certification. The solution of this issue and the introduction of mandatory organic certification at the legislative level will contribute to the development of the market.
Experts believe that the improvement of the overall environmental situation in the country, the rich soil resource potential, the presence of vast areas of land (up to 40%), which have not been cultivated recently due to economic and financial difficulties, cheaper labor.
Organic food products belong to the premium segment of the market, and the margin on them, depending on the product category, can vary from 20 to 400%.
The main sales channels for organic food are:
* supermarkets, where most of the premium food products are sold;
* specialized stores selling natural products;
* direct sales through online stores, which allow you to avoid retail margins. To date, sales of organic food through online stores account for 5% of the total sales of these products. According to experts' forecasts, sales via the Internet will grow by 22% by the end of 2013;
* pharmacies that sell a limited range of organic products. These are mainly diabetic and low-calorie foods, baby food and cosmetics.
The possibility of exporting Russian organic products to the EU countries is also highly appreciated.
Let's consider the factors that in the future can have a positive impact on the growth and development of the market for organic products in Russia.
Political factors:
* in the near future - the adoption of a law on organic agriculture, within which it is necessary to define what "organic" (environmentally friendly) food is;
* development of a unified certification system for organic products based on European and American standards;
* introduction of mandatory certification of organic products;
* adoption at the state level of a comprehensive program for the development of the agro-industrial complex;
* rendering financial assistance farmers (in particular, preferential taxation) at the level of the state and / or region;
* Establishing strong ties with regional and local authorities.
Economic forces:
* stabilization and further growth of the economy after the 2008 crisis;
* stabilization of the ruble exchange rate;
* creation of a system of concessional lending for organic agriculture projects;
* high growth potential of the organic products market (at least 25-30% per year);
* creation of additional jobs in farms Oh;
* attraction of cheaper labor force;
* lower prices for organic products.
Social factors:
* increase in the birth rate;
* striving for healthy lifestyle life;
* growth of incomes of the population;
* Orientation of consumers to better and more expensive food products;
* concerns about the presence of artificial ingredients and preservatives in "traditional" products;
* belief that organic products are more beneficial to health;
* the desire to buy food products that have a natural taste, without amplifiers;
* improving the culture of consumption and education of people in the eco-sphere in general;
* development of an education program for workers in organic agriculture.
Technological factors:
* development of an integrated technology for the production of environmentally friendly products (from soil preparation, planting plants and seeds, feeding and keeping animals, to a full cycle of production and packaging of products);
* conducting scientific research as a guarantee that organic agriculture is healthy, safe and environmentally friendly;
* creation of a logistics system - building a clear and well-functioning system for the supply of products from the farmer to the client.
TARGET GROUPS OF BUYERS AND CONSUMERS OF ORGANIC FOOD
As in the West, in Russia, farm products belong to the premium segment, their main consumers are representatives of the middle and higher class, that is, about 20% of Russians. The most active consumers are women and men aged 25-45, with higher education, with an average and higher income, residents of Moscow and St. Petersburg.
The main motives for buying and consuming organic food are health benefits, absence of artificial ingredients and preservatives, natural taste and safety.
Among the main barriers to the purchase of this product is its high price. Also, many consumers do not feel the usefulness of organic products for health, do not know anything about them or do not trust the manufacturer. A limiting factor is the short shelf life of these products.
Factors stimulating the purchase of organic products include: rising incomes, taking care of your own and family health, fitness classes, a decrease in the number of available and free medical services. Of great importance is the dissemination of information about the dangers of biotech "unhealthy" ingredients in food, as well as the harmful effects of chemicals on traditional agriculture. In addition, the consumption of branded organic products is one of the most fashionable trends in the West.
Thus, we can conclude that the clear policy of the state and the introduction at the legislative level of mandatory certification of eco-products in accordance with international standards, the conduct of an educational program aimed at increasing the level of knowledge about eco-products, as well as the interest of chain retailers in sales and setting an adequate price for these products will contribute to the growth and development of this category in the future.
* International Federation of Organic Agriculture Movements.
** Data from the international association of producers, suppliers and consumers of eco-products.
Ekaterina Dvornikova
Research of the consulting company "Dvornikova and Partners"
Providing the population with food is one of the priorities of the economic entities involved in the industry. The decline in production and retail that has emerged in recent years is due to a number of circumstances. The analysis of the food market indicates the presence of prevailing factors in the industry: the negative dynamics of the national currency quotes, foreign sanctions. The domestic industry is also affected by low consumer confidence in the face of declining incomes.
Retail trade in the Russian Federation in numbers
Projected Growth economic indicators industry, scheduled in 2017, is drawn up despite changing consumer behavior. Consumer demand has a pronounced prudence and rationality in spending. High level debt load of the population, on the one hand, should reduce consumption. On the other hand, the appearance of loan funds ensures the influx of people interested in high-quality (more often imported and farmer's) food to the market.
The diagram of Russian food retail clearly shows positive dynamics. At the same time, analysis of the market for farm products indicates a clear slowdown in growth rates. If at the border of 2010-2011 the growth of the industry was 12.5 percent, then by the end of 2018, retail began to add no more than 4%. In the above diagram of the share substitution of the entire Russian retail, food confidently occupies half of the total turnover.
In the analysis of the product market, indicators of the dynamics of consumption by region are of no small importance. Retail trade turnover is growing without exception in all Russian regions. A clearly emerging trend shows a shift in the attention of citizens to food to the detriment of other segments of consumption.
The growth dynamics of retail turnover shows a steady rise in turnover in the industry. At the same time, the graphs clearly show a gap in consumption depending on the regional affiliation of the consumer. Of course, this is a negative factor for the industry, indicating the concentration of retail outlets in places of greatest consumption and a decrease in labor market indicators in more southern regions.
Based on the data of the analysis of the dairy products market in Russia in 2017 and the research of Rosstat, one can see a clear slowdown in the indicators of the average number of people employed in retail. The results of 2017 indicated a more than modest (over the past 5 years) increase in employees (0.8%) and their wages (5.6%).
The structure of the retail food market
The ordering of the domestic industry was outlined in the 1990s. It was at this time that the first large stores began to appear in the Russian regions. Supermarkets have become especially popular in large Russian cities. The food market research of the 90s included such retailers as Dixy, Metro Cash & Carry. Following the success of foreign companies, Russia began to appear its own networks engaged in the active promotion of the entire range of products of agricultural holdings, farms, tobacco factories and bakeries.
Since 2000, there has been a clear expansion of chain retail in the industry, which subsequently took a leading position in the market, actually leaving small entrepreneurs behind.
In market analysis wholesale trade food outlets are often classified as retail outlets:
- Hypermarkets are giants of the industry. Engaged in the sale of food and non-food products. Area - 4-20 thousand m2
- Supermarkets are large department stores that offer a full range of food, household items. Industry Leaders
Discounters are retail outlets characterized by a large selection of goods at discounted prices. According to the analysis of the grocery store market, this is where the buyer, who is sensitive to the increase in the cost of food in the market, goes. According to the data provided in his RBC study, the share of discounters increased by more than 38 percent in 2017
- Convenience stores - located in residential apartment buildings. Convenient for most buyers due to proximity to the place of residence.
- Other outlets. Most often thematic, for example, the Belarusian Fair.
Leading market players: brand statistics
If the consumer adjusts to the market more on single factors, the retailers themselves have unlimited opportunities to study their customers. The emerging growth of discounters in Russia as a whole is due to the preferences of the population. Among these, there is a sufficient assortment of both the food itself and its price counterparts.
Today, such brands as Coin, Pyaterochka, Magnit, Perekrestok are increasingly involved in product market research. Large federal chains occupy leading positions in retail, often changing their development strategies to promote franchises and subsidiaries. Regional companies that continue to hold less than a quarter of the market are Svetofor, Aniks, Chibis and Five Five.
Remaining the most preferred type of grocery stores, discounters operate in the economy supermarket mode, gradually moving into the status of a hard discounter.
Competition with foreign retailers
Marketing analysis of the food market shows the presence of foreign supermarkets in the industry. Against the backdrop of closing unprofitable enterprises, research agencies recorded 160 cases of opening new outlets. Magnit remains among the leaders, with 31 hypermarkets added, followed by the O'Key chain with nine stores.
Foreign companies also took part in the expansion statistics. The recognizable brand "Auchan" added 7 outlets. The number of Metro buildings increased by the same amount. K-Ruok added two more hypermarkets.
The Russian food market is at the crossroads of its development. There are obviously not enough catalysts for growth trends - the removal of administrative barriers and the introduction of a simplified regime for opening new outlets.
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