THE CONFERENCE PROCEEDINGS - IFEAT

Toilet cleaner/disinfectant has been a fast growing segment during the last 10 years. In 2003 only27% of households used specific chemicals for this application, and 77.3% by volume was supplied byimported products. The first company to enter this market was Unilever with Domestos. Now gelproducts are the most widespread, with only 1% of powders in this segment.Most of the bleaches in the market contain chlorine (4.5 times more than bleaches without chlorine).In this segment Russian producers are traditionally strong and occupy the largest share of the market,but the output volume has steadily declined since from 2000 (see the Table 8 below).As for laundry treatments like conditioners and wetting agents, this market is small and satisfied byimported goods. The dominating brand of conditioner is Lenor by Procter & Gamble 9 .The most active growth can be found in liquids and gels for automatic laundry washing. The luxurysegment also grew very fast until the crisis of 2009. Now it is slowly resuming its pace.Some official statistical data about production of major cosmetic and household products by volumeare given below:Table 8. Production of major cosmetics and household items in Russia (selection) in thousands tonnes 10• 1990 1995 2000 2005 2010 20111 Laundry soap 327 107 85.8 143 103.5 114.92 Toilet soap 190 60.8 99.8 88.2 79 77.73 Detergents 690 275 439 762 "955 "1.3mn4 Powder synthetic detergents ... ... 407.0 635 735.5 ...5 Bleachers ... ... 139.6 129.5 102.1 97.26 Toothpaste (tubes), mn.pieces ... 135 282 265 ... ...Please, note that official statistics do not include illegal imports and domestic production. The blackmarket for cosmetics and household chemicals is estimated to be as large as 25% of the whole marketvolume.Another interesting point is that local production of consumer goods (both cosmetic and household) isvery import-dependent – more than 80% of ingredients are imported and do not have locally producedalternatives.FLAVOUR CONSUMPTIONConsumption activity is high among the Russian population with a very large local market for foodand beverages. Russia is now 12 th in the world rankings of consumer markets, but according toEuromonitor International it will rise to 7 th by 2020. Today the middle class accounts for 20% of thetotal population and this share is growing. Private expenditure on food and beverages amounts to 40%of aggregate spending.Compared to other countries, the Russian food market is far from satiety. Average consumption ofpackaged food products is 170 kg per capita, while for example in Germany this figure is 276 kg. In2011 the total volume of food product consumption grew by 12%, with annual growth forecasts of11% till 2015 11 .266