MIL OSI Translation. Region: Russian Federation –
Last year, almost 70 tons of Moscow sweets were sold to 61 countries.
Moscow-made goods are sold in more than 180 countries, and one of the most promising export niches is confectionery. Last year, sweets from Moscow were sold to 61 countries. According to experts, in addition to traditional consumers in the CIS countries, Moscow producers should take a closer look at the preferences of sweet tooth in the Gulf States and the Asia-Pacific region. In which countries did Moscow confectionery become fond of and which markets do Moscow producers intend to target in the future – read this mos.ru article.
Chocolate is all over
According to the center Mosprom, For 11 months of 2020, the export volume of Moscow confectionery products exceeded $ 166 million (or almost 70 thousand tons of finished products). Compared to the same period in 2019, exports increased by 11 percent.
“The most popular confectionery product was chocolate – it was exported in the amount of $ 80.45 million, which is seven percent more than in 2019. In second place are flour confectionery products, which were sent abroad for $ 61.45 million, export growth amounted to 17 percent. In third place are sugary confectionery products, including fruit candy, jelly candies, and lollipops. They were purchased for $ 24.12 million, which is nine percent more than in 2019. Moscow sweets are supplied to 61 countries, ”said the Deputy Mayor of Moscow for Economic Policy and Property and Land Relations
He noted that Belarus, Kazakhstan, Mongolia, Azerbaijan, Germany and the USA became the key trading partners of the capital companies. These countries account for 65 percent of Moscow’s confectionery exports.
The most attractive for the export of Moscow sweets are the CIS countries. Experts explain this by their geographic proximity, already established trade relations and interest in the supply of products from the capital.
In Belarus, the demand for Moscow chocolate has increased, in Kazakhstan – for fruit marshmallows, white chocolate and candies, and in Kyrgyzstan – for flour products: waffles and sweet biscuits. In 2021, according to forecasts of Mosprom experts, the volume of export of Moscow confectionery products to Kazakhstan may reach $ 32.5 million, and to Kyrgyzstan – about $ 8 million.
Promising Persian Gulf
One of the most promising sales regions for Moscow confectioners is the Gulf countries. The economy is actively developing here and interest in foreign sweets is growing rapidly.
“Some Moscow companies not only supply their products to the Gulf countries, but also open whole representative offices in the region. For example, one of the capital’s soufflé honey producers has opened its cafe in Dubai. In 2020, the organization signed contracts for the supply of products to Saudi Arabia for $ 10.5 thousand and Qatar for $ 10.3 thousand, “said the head of the Moscow Department of Entrepreneurship and Innovative Development.
In 2019, Russia and Saudi Arabia, one of the key countries in South-West Asia, signed a Memorandum on the mutual expansion of the export of agricultural products and foodstuffs. It envisages an increase in bilateral trade by increasing the supply of a wide range of goods from the Russian side, including confectionery, cereals, peas, lentils, poultry, lamb, dairy and other products.
Already in 2020, the export of these goods from Russia to Saudi Arabia doubled. It is expected that the volume of supplies of products of the Russian agro-industrial complex by 2024 may exceed two billion dollars.
“Imported confectionery products in the Gulf countries are receiving a lot of attention from local consumers as Arab businessmen consider them to be of higher quality. Another factor in increasing demand for Moscow’s confectionery products may be a high level of consumption of chocolate confectionery products. Experts consider the United Arab Emirates to be among the leaders in the import of chocolate in the region, followed by Saudi Arabia. In 2019, these countries imported $ 672.88 million and $ 516.39 million, respectively, “said the head of the Moscow Department of Investment and Industrial Policy. Alexander Prokhorov…
The potential for confectionery exports to the Gulf countries in 2021 is estimated at one million dollars. According to forecasts, Saudi Arabia will purchase sweets for 900 thousand dollars, the United Arab Emirates – for 100 thousand dollars.
But capital exporters need to be prepared for high competition with international companies and holdings that have been successfully operating in the Middle East market for many years.
Looking to the East
The undisputed leaders in terms of economic development are Asian countries. According to experts, sweets manufacturers should take a closer look at the markets of China, Japan and Korea. Three key factors make them promising markets for sweets, biscuits and chocolate from Moscow: interest in imported high quality products, a capacious domestic market, and an increase in per capita income.
“The export of confectionery products that are high in cost and final price can become especially successful. Local Asian manufacturers are able to satisfy domestic demand in the low and medium segment, while the market for high-value products remains open to foreign manufacturers. The growth of incomes and the improvement of the quality of life allow the residents of Asian countries to choose products more carefully and stricter, and they traditionally consider imported sweets to be of high quality, ”emphasizes Natalya Shuvalova, General Director of the Mosprom Center.
Experts point out that Asian shoppers are looking for a variety of assortments and are ready to try products with unusual ingredients. They prefer imported products in bright and eye-catching packaging. Another important factor is the trend towards healthy eating. Therefore, Moscow exporters should add confectionery with natural ingredients, fruit juices or berries to their product lines.
The greatest demand in the markets of China, Korea and Japan, according to experts, will be used for milk chocolate products, sweet biscuits and biscuits with chocolate pieces, as well as marshmallows and jelly candies. The potential level of metropolitan sweets exports to China in 2021 is estimated at $ 7 million, to Japan at $ 250,000 and $ 150,000 to the Republic of Korea.
Who helps exporters
To support the capital’s exporting companies, the Mosprom center and the Moscow Export Center were created in the city.
Center experts Mospromhelp metropolitan industrialists, as well as exporters of agricultural products with the search for counterparties and negotiations with potential buyers abroad, ensure the participation of companies in international exhibitions. They also organize a buyer’s program for countries interested in the products of Moscow manufacturers. In addition, the center can help with the analysis of target markets.
Metropolitan companies can also receive comprehensive support for foreign trade activities in Moscow Export Center… Here, exporting companies will be helped to prepare documents for receiving subsidies and grants, and will be provided with free accounts on international marketplaces. The center’s experts conduct personal analytical studies of foreign markets and search for potential buyers at the request of clients. There are many other support programs as well.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.