Caviar sales in Russia experience an 8% reduction
Declining Caviar Sales Persist in Russia for Second Month Consecutively
According to recent reports, the luxury delicacy of caviar has witnessed a 10% and 13% decrease in sales from Russian consumers in August. This downward trend, according to Dmitry Batushenkov, CEO of "Platform OFD", is attributed to a decline in supply and a rise in prices.
Prices for caviar purchases in Russia in September increased by 8% and 9% year-on-year, with an average check of 3300 rubles in Russia and 3600 rubles in Moscow. In comparison, the same period last year saw a price of 4800 rubles per kg of caviar, a year-on-year increase of 50%, as stated by the All-Russian Association of Fishermen (VARPE), using Rosstat data.
Earlier in the year, Russians predominantly purchased caviar in volumes of 250-500 g. However, in September, packages of 250-350 g were predominantly sold, as observed by analysts.
Approximately 60-65% of the market share in terms of money is accounted for by salmon caviar, with sturgeon caviar making up 5%, pollock contributing 4%, and 3-4% stemming from imitation salmon caviar, as well as cod and imitation sturgeon caviar.
The demand for caviar in Russia shows a seasonal trend, as sales increase prior to the New Year and Maslenitsa.
Forecasts for the volume of red caviar production in 2024 vary among experts surveyed by "Kommersant." Estimates range between 8000 t and 18,000 t, while the average annual consumption in the country is between 12,000 t and 13,000 t.
On October 7, "Izvestia" reported, citing Alexander Panin, chairman of the Fish Union, that red caviar had already increased by 25% year-on-year in October. Panin also predicted a potential 10% increase in the price of the product by the New Year. He confirmed the current average price for 1 kg of caviar stands at 8000 rubles.
Despite this upward price trend, Panin assured there would be no caviar shortage in Russia. He estimates 11,500 t of caviar will be produced this year, with significant volumes of frozen caviar remaining from last year and 25,000 t produced in 2023.
When analyzing the ongoing demand for red caviar in Russia, several factors could be at play. These include increased global demand for luxury and gourmet foods, health awareness, a growing focus on domestic caviar production, and local preferences for red caviar. Further investigation into Russian consumer preferences and market dynamics would provide a better understanding of the current trend.
The ongoing decline in caviar sales might be affecting other sectors, with potential consequences for the Russian finance and business industry, given that caviar is a significant part of Russia's luxury market. In light of the increased prices and decreased supply, the industry may experience shifts as consumers seek substitutes or adjust their spending habits.
