Non-Alcoholic Drinks - Russia

The Non-Alcoholic Drinks market in Russia is experiencing significant growth and development.

Customer preferences: Russian consumers are increasingly opting for healthier beverage options, leading to a rise in demand for non-alcoholic drinks. This shift in consumer preferences can be attributed to a growing awareness of the health benefits associated with reducing alcohol consumption and making healthier choices. Additionally, there is a rising trend of consumers seeking out non-alcoholic alternatives that still provide a similar sensory experience to alcoholic beverages, such as mocktails and non-alcoholic beers.

Trends in the market: One notable trend in the Non-Alcoholic Drinks market in Russia is the increasing popularity of functional beverages. These drinks are formulated with added nutrients or ingredients that offer specific health benefits, such as improved digestion, enhanced energy levels, or stress reduction. This trend can be attributed to the growing interest in holistic wellness and self-care among consumers. Functional beverages are often marketed as a convenient way to incorporate health-boosting ingredients into one's daily routine, making them particularly appealing to busy urban dwellers. Another trend in the market is the rise of premium non-alcoholic beverages. Russian consumers are becoming more willing to spend on high-quality, premium products, and this extends to the non-alcoholic drinks sector as well. Premium non-alcoholic beverages often feature unique flavor profiles, high-quality ingredients, and sophisticated packaging, appealing to consumers who seek a luxurious and indulgent experience. This trend is driven by the desire for elevated experiences and the growing influence of social media, where aesthetically pleasing products are often showcased.

Local special circumstances: Russia has a rich cultural tradition of tea consumption, which has influenced the Non-Alcoholic Drinks market in the country. Tea is a popular beverage choice among Russians, and this has created opportunities for the development of innovative tea-based non-alcoholic drinks. These beverages often combine traditional tea flavors with modern twists, such as fruit infusions or herbal blends. The familiarity and cultural significance of tea in Russia make it a favorable base for non-alcoholic beverages, catering to both traditional and adventurous taste preferences.

Underlying macroeconomic factors: Russia's improving economy has contributed to the growth of the Non-Alcoholic Drinks market. As disposable incomes increase, consumers have more purchasing power to spend on non-essential items, including beverages. Additionally, the expanding middle class in Russia has led to a larger consumer base for non-alcoholic drinks, as more individuals can afford to incorporate these products into their daily lives. The growing urbanization in the country has also played a role, as urban dwellers often have more exposure to a variety of non-alcoholic beverage options and are more likely to embrace new trends.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.