According to Center for Market Economics, the potato processing market in Russia is growing at an average rate of 30% per year, and by the end of 2019, the volume of production produced in the country reached 0,3 million tons per year. In the 1st half of 2020, the volume of processed potatoes reached 168 thousand tons and, taking into account the current market growth of 12,8%, according to the forecast, by the end of 2020 it will amount to 0,34 million tons of products.
The imposition of sanctions had a positive effect on the Russian production of industrial potato processing products: on average, the volume of processed potatoes has grown 2014 times since 2,3. After a sharp drop in production in 2014 due to the imposition of an embargo on the supply of raw materials from foreign countries by 21,3% to 147 thousand tons of processed potatoes, in 2015, producers began to compensate for the volume of potato processing, and by the beginning of 2018, the market had reached indicators pre-sanction period.
In the structure of the processing market, more than half (62%) are cooked and canned potatoes. A quarter of the market (25%) falls on sliced and frozen potatoes. The smallest part remains on starch, flakes, potato granules (7%), as well as potato slices, chips, fried or dried potatoes (6%).
In 2020, starch production showed the greatest dynamics – primarily due to compensation for the fall of 23,8% in 2019. The volumes of produced starch, flakes and granules from potatoes in 2020 are projected to be 39,3 thousand tons – 2018 thousand tons more than in 18,9. The production of canned and cooked potatoes is growing steadily by 14-15%. In 2019, the growth of this segment amounted to 14,3% – the volume of canned and cooked potatoes reached 185,6 thousand tons. In 2020, the production of canned and cooked potatoes is projected to reach 214 thousand tons. The production of chips and fried or dried potato slices in 2019 increased by 60,5% and amounted to 20,4 thousand tons. In 2020, a 20,8% drop is expected in the market segment – the volume of chips and fried or dried potato slices produced is expected to be 13,6 thousand tons.
The highest rates of industrial processing of potatoes in 2019 and 2020 are observed in the Central Federal District (222 and 254 thousand tons). The volume of processed potatoes by producers in the Central Federal District in 2019 amounted to 75% of the total potato industry in the federal districts. The Southern Federal District is the second largest federal district in terms of this indicator (16% of the market in 2019). The remaining part (8%) is divided among themselves by the Siberian, North Caucasian and Ural federal districts. In 2020, the share of industrial potato processing products produced in the Central Federal District is expected to drop to 73%.
The total revenue of companies processing and preserving fruits and vegetables in 2019 amounted to 141 billion rubles. (according to the Federal Tax Service of Russia), while the market is growing slightly annually – an average of 3%.
After changes in the volume of deliveries of fruits and vegetables in 2014-2015 due to the adoption of sanctions, in 2016 the company’s revenue “dipped” by 13,4%. At the same time, in 2018 and 2019, the financial indicators of fruit and vegetable processors began to catch up with the post-crisis decline, demonstrating an increase of 6,3% and 4,9%, respectively. At the same time, the revenue of producers of processed products and canning of potatoes for the period since 2014 has grown by almost 2 times and reached 2019 billion rubles in 37,3.
A source: POTATO SYSTEM