Bottled water market in Russia

1Drivers and Restrains of Russian BottledWater MarketBottled water is one of the fastest growingsegment on the Russian consumer market.During last years it showed 15-16 % growth ratesand after 5 % crisis recession it continues fastdevelopment. Nevertheless not every foreignplayer will be able to enter this marketsuccessfully. Bellow are named core drivers andrestrains that will influence on its success.DriversThe average annual bottled water consumption has almost doubled in last5 years, but it’s still around 35 liters per year. It’s still much less than inWestern Europe and even less comparing with Eastern European countriesas Check Republic, Poland etc. That opens good prospects for futuremarket growth.The main reasons for that could be increase of wellbeing of people inRussia and of customer requirements to the quality of water. Especially it isactual due to the bad current quality of tapped water.RestrainsAlthough there are several strong restrains for successful marketpenetration:  Difficult export/import formalities;  Strong market consolidation: for example in Moscow 2 main players (Nestle and “Corolevskaya voda”) control 45 % of the market;  Undeveloped retail chains in Russian regions;  Low level of customer income;  Lack of culture of drinking bottled water. VM Consult – “Your first step onto a new market”www.consultvm.com

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Bottled water market in Russia

by Viacheslav Makovich on Jan 16, 2012

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