Market Trends

Bakeries in the Supermarket

In the Russian market as in other countries, the supermarkets now play a key role in the sale of bread and baked goods. Two trends are apparent:

1. Supermarkets have great power to influence the prices.
The profit margins of bread suppliers to the supermarkets are decimated because supermarkets can set unfavourable delivery terms. This in turn triggers further automation in the manufacturing process.

2. Increasingly, large chain stores produce baked goods directly in the supermarket.
Moscow's supermarkets increasingly attract affluent customer groups with oven-fresh bread and baked goods. No doubt, the trend of store-run bakeries has reached Moscow.. In the coming years, supermarkets will turn into interesting trading partners for the manufacturers engaged in oven technology and semi-finished baked goods.

Sliced Bread

Sliced bread keeps winning popularity and promises large companies and retailers higher profits. Sliced bread has to be packaged. Like everything else, packaging must conform to consumer expectations. While today the slices are still shrink-wrapped, experts expect the introduction of improved wrappings for optimal storage made of paper and perforated plastic.

Adjustments and improvements are necessary with regard to the available equipment in the approximately 10,000 Russian bakeries, in which 7,705,000 tons of bread and baked goods are produced annually.

More Automation

Another trend is the increasing price pressure on the bakeries: Rising energy prices and leasing costs demand a higher productivity improvements to stay competitive. Add to this the increasing market share of the up and coming supermarkets in Russia. While gaining more and more importance as distribution channels for the producers of baked goods, the supermarkets also use their strong market positions to negotiate large delivery volumes and price concessions. The small and medium-sized companies are hard pressed to compete. Industrialisation and automation are therefore the order of the day, especially since new consumer habits call for new machines.

Market Trends at a Glance

Supermarkets Gain Market Shares

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