The recent growth of the plant-based protein industry in Russia provides opportunities for major food processing companies and new entrants.
According to ConsumerIntel360, Plant protein consumption increased at an annual growth rate (AGR) of 25.0% during 2018-2019. The recent growth of the plant-based protein industry in Russia provides opportunities for major food processing companies and new entrants.
The plant-based protein market is rather fragmented in Russia with the presence of large companies such as ADM, Cargill, Cosucra Groupe Warcoing S.A., DuPont de Nemours, Inc., Kerry Group, NOW® Foods, Ingredion Incorporated, Tate & Lyle, and Beyond Meat.Likewise, startups are raising funds to be stable in the Russian plant-based protein market. Also, the industry is getting support from growing restaurants and foodservice outlets for the sales of plant-based foods.
The growing competition is expected to also allow retailers to put more private labels into the marketplace. Moreover, the plant protein market is at a relatively nascent stage in its development, therefore several start-ups and relatively small businesses are entering the market.Startups such as Greenwise and Moving Mountains are planning to expand their product line this year to reduce Russia’s meat consumption by offering plant-based alternatives to the popular meat products.
Also, the presence of the leading meat producers such as Tyson, Cargill, and JBS makes the Russian plant-based market more competitive. These firms have a large global distribution network which helps them reach a broader customer base. Periodically updating their food products with newer ones and building partnerships with the leading foodservice channels make these companies strong competitors.Rapid business growth is creating opportunities for startups. Fundraising and production, both in small and large amounts, demonstrate the growth trend in the plant-based protein or alternative meat products market in Russia.
Retailers are willing to provide shelf space for plant-based products. Retailers such as Azbuka Vkusa, VkusVill, Globus, and X5 Retail Group are willing to provide separate sections for vegan and vegetarian products—not only in physical stores but also in their online portals. These products are included by small and large retailers in their marketing campaigns because they aim to emphasize the availability of plant-based, animal-friendly, and green products in their stores.
