Russian market of kvass: growth can be limited only by demand

Direct INFO has carried out an in-depth research of the Russian market of kvass. The goal of this research is to determine market volume, shares of main market players, volumes of domestic Russian production, and estimation of kvass production capacities.
In frame of research only natural kvass was carefully investigated (i.e. drink prepared by means of natural fermentation). Kvass beverages, namely carbonated beverages containing a flavoring agent of “Kvas”, or natural blending kvass processes were excluded from consideration because such beverages were considered not significantly close enough to the market of the native Russian drink kvass by natural fermentation.
Specialists of Direct INFO have founded that in 2006 in Russia produced more than 28 thousand deciliters of kvass. More than half of this quantity (about 63%) falls at two market leaders: CJSC MBBF "Ochakovo" (kvass under brand “Ochakovskiy”) and OJSC “Deka” (brand “Nicola”). According to the results of 2007 until now, 40% growth is predicted over last year.
In spite of such a large growth rate, the kvass market still has significant growth potential for both demand and supply. During the last few years, consumers have been requiring more naturally produced food products. Kvass falls into the category of natural beverages. For kvass producers, changing market tastes presents an opportunity, because due to growing demand, producers can use their existing production capacity more effectively. Direct INFO has estimated that in 2006, the average utilization rate of capacities on kvass production was about 21% in Russia. Total Russian productive capacities in October 2007 amounted to 135 thousand deciliters. During the study, we found that many companies have plans to increase their productive capacity of kvass. Russian kvass producers from a technical point of view are ready for market growth. During the next few near years, the growth of the Russian kvass market will be directly related to the growth in demand. Will technical requirements shift to marketing requirements after the current demand is saturated? A follow-up study focusing on consumer tastes may help move the market along that path.

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Direct INFO provides customized market and corporate reports to hundreds of multinationals using a diverse set of qualitative and quantitative sources specific to products, segments, industries, regions, companies and holdings in the Russian and CIS markets.
Direct INFO is an ten-year-old Moscow-based company that develops and sells custom statistical market research products and services pertaining to Russia and the CIS.

This release was published on openPR.