A 10 percent decline in the production of juices and water will occur in the Russian Federation

The Union of Juice, Water and Drink Producers (Soyuznapitki) expects the volume of the juice and water market in Russia to decline by at least 10 percent in 2022 compared to 2021, but the industry has the potential for a quick recovery. This was announced to reporters on Tuesday by the head of the union Maxim Novikov.

"The depth of the fall will depend on how quickly the producer adapts to these conditions, but it is guaranteed, based on previous crises, that the depth of the fall can be at least 10%. The good news is that the water market is recovering very quickly, that is, we can exit on double-digit growth rates, 10-15%," he said.

According to Novikov, the juice market is more conservative in this regard and may take longer to recover. He also recalled that last year Russia produced about 8.5 billion liters of packaged water, 7 billion liters of soft drinks, 2.5 billion liters of juices and about 300 million liters of vegetable drinks.

"This year, we already see a lag in production rates compared to the past. This is due to the classic decrease in consumer activity due to a decrease in income, which occurs every crisis," the head of the union said. According to him, the most "fatal crisis" was in 2008, when juice consumption halved and has not yet recovered.

"We had the maximum volume of 3.5 billion liters of juice products, now we will produce only 2.5 billion liters. We were able to pass 2008 only by water, so a rollback is inevitable here," Novikov said. He added that the decline in market volumes will depend not only on consumer activity, but also on the characteristics of the market tied to packaging. “That is, if we cannot bring some ingredients, we cannot buy some raw materials, for objective reasons we will not be able to produce this volume, even if there is a secured demand,” he explained.

At the same time, the share of imports in this market, according to Soyuznapitkov, is only 2-4%. "The share of imports is unlikely to grow strongly, because with the strengthening of the national currency, imports seem more attractive, but our products are bulky and heavy, so it is difficult and expensive to transport them, and in conditions of destroyed logistics, this is not possible," Novikov concluded. .

Source: https://tass.ru/