Information for fruit and vegetables business in CIS
Russian market of frozen vegetables, berries and mushrooms will double
According to information provided by Yarmarka.net, Russian market of the frozen vegetables, mushrooms and berries has grown approximately 1.5 times both in value and physical terms. The annual growth rate of this market is about 20% at the present moment. The "Breakthrough" company has carried out the survey "The forecast of the frozen food market development in 2007-2008"; according to its results, an insignificant decline of the growth rates down to 18-19% will happen in 2007. This market has a chance to grow twofold by 2011 if compared with the present-day market volume.
The size of this segment will grow due to the increasing demand for the frozen vegetables and mushrooms from the side of the inhabitants of the Russian Federation regions. As for today, mostly the citizens of large cities have a habit to consume frozen vegetables.
In 2005 the size of the market of frozen vegetables (including potato), mushrooms and berries increased up to 135-140,000 tons in physical terms and around $150 mln. in value terms. Today the size of the frozen vegetable, mushroom and fruit market is around 15-165,000 tons in physical terms; the capacity of the market is estimated about $180-200 mln. in value terms. The size of the frozen vegetables market was 140-148,000 tons in 2006.
According to evaluations done by the analysts of "Agrooglyad: Vegetables and Fruits" journal, the weekly periodical of the produce business, the growth rates of Ukrainian market of the frozen vegetables, fruits, berries, potato and mushrooms are considerably higher than the growth rates demonstrated by Russian market (30-40% annually). However, the size of Ukrainian market is several times smaller than the Russian market size. Also, the supply of the frozen produce per one inhabitant is twice-thrice lower in Ukraine than in Russia. This fact is partially predetermined by a warmer climate and a greater supply of the fresh produce of local origin during a longer period of time.