Market for Frozen Fruit and Vegetables in Russia

Research by ID-Marketing

Production of frozen potatoes has the highest concentration in Russia. In January–November 2021, about 99% of their total volume was produced in the Central Federal District. The main volume here falls on Lipetsk region. In 2018, production of frozen french fries by Belaya Dacha Group was launched in the region. Its production capacity is up to 100 thousand tonnes per year. The company’s largest customers are such giants as McDonald’s and Burger King. At the end of 2020, Dutch company Lamb Weston became the full owner of the enterprise. In addition, an agreement was signed at the St. Petersburg International Economic Forum 2021 involving investments in a new production line, scheduled for commissioning in 2023.
The market for frozen vegetables and mushrooms in Russia is less concentrated than that for frozen potatoes, the former featuring about 95% of the total volume produced in the Southern and Central Federal Districts in January–November 2021. The largest production volumes in the south of Russia are concentrated in the Republic of Adygea and Krasnodar Krai. It is also worth noting that, in the second half of 2021, a new plant for the production of flash-frozen vegetables was opened in Adygea with the capacity of 14 thousand tonnes of finished products annually. At the same time, Alyans company plans to launch the second production line by 2023, thereby raising the volume to 25 thousand tonnes per year.
The least concentrated market is that for frozen fruits, berries and nuts. In this segment, in January–November 2021, the largest volumes were produced in the Central Federal District, 43.9% of the indicator’s total value; the Northwestern Federal District, 28.4%; and the Southern Federal District, 12.9%. The shares of the Siberian and Ural Federal Districts amounted to 10.3% and 2.9% respectively.
A significant share of frozen vegetables, fruits and berries in Russia is imported. The main buyers are wholesale trading companies. According to the results of the first 11 months of 2021, they accounted for almost 77% of the total imported volume. In January–November 2021, the volume of supplies of frozen vegetables to the country amounted to approximately 74.6 thousand tonnes; berries, about 54 thousand tonnes; and fruits, about 12.5 thousand tonnes. 
Among imported frozen vegetables, broccoli, beans, cauliflower, corn, sweet peppers and peas were in highest demand on the Russian market. 
The largest import volumes fell on frozen vegetables from Egypt (27% of the total volume), China (18.7%), and India (16.2%). The share of Uzbekistan and Serbia amounted to 13% and 11.5%, respectively.
Serbian company Aretol D.O.O. ranked first among foreign producers in terms of frozen vegetable imports into Russia, with a share of 5.3%. The manufacturer has four enterprises producing fresh frozen vegetables with the capacity of 20 thousand tonnes. Fresh products for the company are supplied by farmers from nearby areas. More than 37% of the total imported volume of frozen vegetables of the Serbian producer was represented by beans. The top three manufacturers in the import of frozen vegetables to Russia in January–November 2021 also included Zavod Konservov Detskogo Pitaniya [Baby Food Canning Plant] OJSC (Moldova) and Lucic Prigrevica ad Novi Sad (Serbia), with shares of 4.8% and 4% respectively.
Strawberries became the most demanded product in the import of frozen berries. According to the results of the first 11 months of 2021, they accounted for 3/5 of the total imported volume. Significant volumes of imports were also represented by frozen cherries and raspberries.
The core of frozen berry imports to Russia is made up from products of Egyptian origin. In January–November 2021, the share of Egypt as a producer country exceeded 56.5%. The rest of the top three countries are Serbia and China, which accounted for 18.8% and 15.5%, respectively.
Among the manufacturers, Egyptian company International Delta Center for Export ranks first with the share of 8% in the first 11 months of 2021. The company was founded back in 1985. At present, its annual freezing capacity is 45,000 tonnes. The structure of the company includes a packing shop, a refrigerated warehouse and a plant for frozen vegetables, fruits and berries. The entire imported volume of frozen berries of this producer in Russia in January–November 2021 was represented by strawberries. The top three manufacturers also included two other Egyptian companies: Elsheikh Company for Food Packing and Preservation and EL-Swedy for Export & Supplies. Their shares in the total import of frozen berries into Russia in the analyzed period amounted to 6.8% and 6%, respectively.
The largest volumes of frozen fruit imports into Russia in January–November 2021 were represented by peaches, mangoes and apricots. Their total share in the total volume exceeded 57% in physical terms.
Almost half of the total volume of frozen fruit imported to Russia following the results of the first 11 months of 2021 was made up by goods produced in China. The top three producing countries also included Vietnam and Uzbekistan, whose shares amounted to 14.1% and 7.8%, respectively. The top three foreign producers are represented by Beijing Hongming Import & Export Co., Ltd; Gaomi Ruifeng Foods Co., Ltd; and Hung Phat Fruits Producing Company Ltd. Their combined share in January–November 2021 was 17%.
Summing up, it should be noted that, despite significant growth in domestic production, the Russian market for frozen fruits and vegetables is faced with a number of problems. First and foremost, this is the absence of a strict GOST standard for the content of ice mass, while there are precise rules in place for frozen meat, fish and seafood. As a result, dishonest manufacturers overpump their products with water prior to freezing.
Another issue is that, even if the weight declared on the package corresponds to the actual weight of the finished product when it is defrosted, the picture on the package often does not correspond to the actual proportions inside. For instance, if the picture shows a uniform content of potatoes, broccoli, beans and carrots in the mixture, inside the potatoes can make up 80% of the total volume instead. In addition, according to individual market participants, unscrupulous producers may freeze products that are simply impossible to sell fresh and the buyer will only be able to find out about these maneuvers after opening the package. The key solution to these problems is legislation regulation. Business, in turn, is doing everything possible to develop this market, as evidenced by the rapid growth in production volumes. Experts expect the positive trend to persist.

In recent years, Russia has seen a powerful growing trend in production of frozen vegetables and fruits. From 2018 to 2020, the preparation of frozen vegetables (except potatoes) and mushrooms in the country increased by 93.7%; that of frozen potatoes went up by 84.1%; and fruits, berries and nuts, by 69.4%. In January–November 2021, production of frozen vegetables (except potatoes) and mushrooms increased by 41.6% compared to the same period a year earlier; frozen potatoes saw a 31.7% increase; fruits, berries and nuts went up by 43.2%.Production of frozen potatoes has the highest concentration in Russia. In January–November 2021, about 99% of their total volume was produced in the Central Federal District. The main volume here falls on Lipetsk region. In 2018, production of frozen french fries by Belaya Dacha Group was launched in the region. Its production capacity is up to 100 thousand tonnes per year. The company’s largest customers are such giants as McDonald’s and Burger King. At the end of 2020, Dutch company Lamb Weston became the full owner of the enterprise. In addition, an agreement was signed at the St. Petersburg International Economic Forum 2021 involving investments in a new production line, scheduled for commissioning in 2023.The market for frozen vegetables and mushrooms in Russia is less concentrated than that for frozen potatoes, the former featuring about 95% of the total volume produced in the Southern and Central Federal Districts in January–November 2021. The largest production volumes in the south of Russia are concentrated in the Republic of Adygea and Krasnodar Krai. It is also worth noting that, in the second half of 2021, a new plant for the production of flash-frozen vegetables was opened in Adygea with the capacity of 14 thousand tonnes of finished products annually. At the same time, Alyans company plans to launch the second production line by 2023, thereby raising the volume to 25 thousand tonnes per year.The least concentrated market is that for frozen fruits, berries and nuts. In this segment, in January–November 2021, the largest volumes were produced in the Central Federal District, 43.9% of the indicator’s total value; the Northwestern Federal District, 28.4%; and the Southern Federal District, 12.9%. The shares of the Siberian and Ural Federal Districts amounted to 10.3% and 2.9% respectively.A significant share of frozen vegetables, fruits and berries in Russia is imported. The main buyers are wholesale trading companies. According to the results of the first 11 months of 2021, they accounted for almost 77% of the total imported volume. In January–November 2021, the volume of supplies of frozen vegetables to the country amounted to approximately 74.6 thousand tonnes; berries, about 54 thousand tonnes; and fruits, about 12.5 thousand tonnes.Among imported frozen vegetables, broccoli, beans, cauliflower, corn, sweet peppers and peas were in highest demand on the Russian market.The largest import volumes fell on frozen vegetables from Egypt (27% of the total volume), China (18.7%), and India (16.2%). The share of Uzbekistan and Serbia amounted to 13% and 11.5%, respectively.Serbian company Aretol D.O.O. ranked first among foreign producers in terms of frozen vegetable imports into Russia, with a share of 5.3%. The manufacturer has four enterprises producing fresh frozen vegetables with the capacity of 20 thousand tonnes. Fresh products for the company are supplied by farmers from nearby areas. More than 37% of the total imported volume of frozen vegetables of the Serbian producer was represented by beans. The top three manufacturers in the import of frozen vegetables to Russia in January–November 2021 also included Zavod Konservov Detskogo Pitaniya [Baby Food Canning Plant] OJSC (Moldova) and Lucic Prigrevica ad Novi Sad (Serbia), with shares of 4.8% and 4% respectively.Strawberries became the most demanded product in the import of frozen berries. According to the results of the first 11 months of 2021, they accounted for 3/5 of the total imported volume. Significant volumes of imports were also represented by frozen cherries and raspberries.The core of frozen berry imports to Russia is made up from products of Egyptian origin. In January–November 2021, the share of Egypt as a producer country exceeded 56.5%. The rest of the top three countries are Serbia and China, which accounted for 18.8% and 15.5%, respectively.Among the manufacturers, Egyptian company International Delta Center for Export ranks first with the share of 8% in the first 11 months of 2021. The company was founded back in 1985. At present, its annual freezing capacity is 45,000 tonnes. The structure of the company includes a packing shop, a refrigerated warehouse and a plant for frozen vegetables, fruits and berries. The entire imported volume of frozen berries of this producer in Russia in January–November 2021 was represented by strawberries. The top three manufacturers also included two other Egyptian companies: Elsheikh Company for Food Packing and Preservation and EL-Swedy for Export & Supplies. Their shares in the total import of frozen berries into Russia in the analyzed period amounted to 6.8% and 6%, respectively.The largest volumes of frozen fruit imports into Russia in January–November 2021 were represented by peaches, mangoes and apricots. Their total share in the total volume exceeded 57% in physical terms.Almost half of the total volume of frozen fruit imported to Russia following the results of the first 11 months of 2021 was made up by goods produced in China. The top three producing countries also included Vietnam and Uzbekistan, whose shares amounted to 14.1% and 7.8%, respectively. The top three foreign producers are represented by Beijing Hongming Import & Export Co., Ltd; Gaomi Ruifeng Foods Co., Ltd; and Hung Phat Fruits Producing Company Ltd. Their combined share in January–November 2021 was 17%.Summing up, it should be noted that, despite significant growth in domestic production, the Russian market for frozen fruits and vegetables is faced with a number of problems. First and foremost, this is the absence of a strict GOST standard for the content of ice mass, while there are precise rules in place for frozen meat, fish and seafood. As a result, dishonest manufacturers overpump their products with water prior to freezing.Another issue is that, even if the weight declared on the package corresponds to the actual weight of the finished product when it is defrosted, the picture on the package often does not correspond to the actual proportions inside. For instance, if the picture shows a uniform content of potatoes, broccoli, beans and carrots in the mixture, inside the potatoes can make up 80% of the total volume instead. In addition, according to individual market participants, unscrupulous producers may freeze products that are simply impossible to sell fresh and the buyer will only be able to find out about these maneuvers after opening the package. The key solution to these problems is legislation regulation. Business, in turn, is doing everything possible to develop this market, as evidenced by the rapid growth in production volumes. Experts expect the positive trend to persist.

Andrey Levanov,
Lead Analyst
Research Company ID-Marketing