The year 2020 showed a steady growth in the volume of Russian exports of confectionery products, and against this background, Moscow also demonstrated a positive trend. Thus, in the first eight months of last year alone, the total amount of transactions for deliveries abroad of products of Moscow confectioneries grew by 11% compared to the same period of 2019.
In monetary terms, Moscow's confectionery exports totaled $98.36 million. In physical terms - 41.73 thousand tons, which is 8% more than last year's figure. Such data was provided by Deputy Mayor of Moscow on Economic Policy Vladimir Efimov.
Confectionery export directions
According to the published data of Moscow Department of Investment and Industrial Policy one can judge about positive and even symbolic changes in export directions of Moscow confectionery enterprises.
Alexander Prokhorov, the head of the department, notes that Belarus remains the leader in purchases in this industry. For the first 8 months of the last year the country bought 25,6 million dollars worth of production from the Moscow confectionery companies.
It is worth noting that Belarus is the leader not only in terms of volume, but also in terms of growth. So, the specified total amount of transactions as much as 82.4% more than in the same period of 2019. Some types of products received literally explosive demand - for example, the Belarusian side bought chocolates for $1.9 million, which is four times more than in 2019.
There has been an increase in supplies in other areas as well. For example, the export volumes of Moscow confectionery companies to the United States, although much more modest in total than to Belarus, but also notable - $4.65 million for the same first eight months. And that's a third more than the same period in 2019.
In all, Alexander Prokhorov reminds us, Moscow currently exports sweets to 59 countries.
Production and composition of exports
The nature of products supplied abroad by the confectionery industry is also of interest for analysis and forecasts. For example, Russia in 2020 is close to the top ten largest suppliers of chocolate in the world. Export volumes of chocolate products amounted to more than $700 million - with such an indicator, Russia ranked 11th in the world statistics of chocolate exporters.
Moscow has also increased its presence by 6% in the volume of this segment of Russian export compared to the previous year. Metropolitan chocolate manufacturers have concluded export deals to the amount of 44.6 million dollars only for the first 8 months of last year. The biggest buyers of these products were Belarus, Kazakhstan, Azerbaijan, Mongolia, Germany and USA.
Foreign deliveries of sweet bakery products from Moscow enterprises also showed considerable growth in the first three quarters of 2020. The total amount of transactions increased by 8%, exceeding the mark of $15 million. Particularly, the export of wafers made up almost two thirds of this volume by the sum of transactions - 9,9 mln. dollars, and in money equivalent it is 30% more than in the previous period.
Trends and forecasts
In the first half of 2020, experts were not sure what the results of the actual exports of confectionery products from Russia will show the statistics. A serious factor of uncertainty was the pandemic, as well as numerous force majeure circumstances in foreign economic activity associated with it.
Nevertheless, already as of October it became obvious that Russian and, in particular, Moscow export of confectionery products not only did not lose in volumes, but, on the contrary, significantly increased. Thus, the above-mentioned growth of 11 and 8% (in value and volume respectively) confirmed the strong growth trend of recent years.
The results of their analysis and forecasts were made by specialists of the "Mosprom" Export Support Center. The independent research showed positive trends and prospects for the development of directions of Asia, the Middle East and North Africa for the export of confectionery products of Moscow manufacturers. It is in these countries there is a steadily growing demand for these products in a wide range.
According to "Mosprom" experts, such high demand for imported sweets in these regions of the world is explained by a combination of growing real incomes of the population and simultaneous lack of industrial capacities and raw materials. Domestic production in a number of countries cannot keep up with the growing purchasing power of the population, and to meet demand, governments are willing to buy sweets from abroad. Such high demand automatically improves price conditions and makes offers from potential partners more attractive for the Russian side.
Natalia Shuvalova, the general director of Mosprom center, commented on and complemented the results of the research conducted by the center. According to her words, the actual trends of the world confectionary industry are characterized by the attempts to create brand new products with unique recipes, and accordingly, new production technologies. New trends in marketing will also inevitably influence the package - innovative design and new materials will require increased costs. These are the factors Shuvalova characterized as key in the projected growth of the confectionery industry in the coming years in the Asia-Pacific region and the world at large.
The head of Mosprom center also added that today chocolate products remain the world leaders in production and consumption volumes, followed immediately by sugary products and then flour sweets. "Qualitative market conditions remain the same as in all previous years, but the rapid growth in demand for confectionery products in Asian countries is driving global markets to expand product portfolios and introduce new brands," Shuvalova concluded.