49
NOV2017 FOOD FOCUS THAILAND
STRATEGIC
R & D
When lactose-freeproductswas removed from importprohibition
list in2014, rulesand regulationson the importof lactose-freeproducts
into Russia was rapidly amended to bemuch stricter bymid-2015.
Manufacturersare required toobtainofficial authorizationdocument
from theRussiangovernmentagency to import lactose-freeproducts
with qualifications as nutritional products for diseases treatment or
nutritional therapy.
Lactose-free foodmarket expanded15% in2016, accounting for
15.5 billion rubles (260 million US dollar). The growth went in
accordance with annual growth forecast, but the unfavorable
economicenvironment hasdrawnback retail growth toexpandonly
little.
Lactose-free children food has seen the biggest growth in 2016
at 20%. It isconsidered tobe theproduct that is least affectedby the
economiccondition,becausemanyparentsdonotwish tocutexpense
on children’s nutrition.
“FreeFrom” food for consumerswho are allergic to
gluten and lactose is still a nichemarket inRussia.
Even though this type of food had gained wider
interests, but the unfavorable economic climate is
making consumers lesswilling to spend extra cash
on these special foods.
Meanwhile,market for lactose-freedairyproductsexpanded15%
in2016,despiteonly4%growth in termsofquantity.Moreconsumers
are looking for special nutritionproducts suchasdairyproducts that
are free-from lactose,whichdrives for theavailabilityof theproducts
in retail stores. Informingnutrition labelon foodpackagesalsoboosts
customers’awarenessandsales for lactose freedairyproducts, and
triggers domestic expansion in the sector to substitute for import
products.
Average price per unit for free from food increases relatively
higher than general food. However, themarket share for free from
food is still small and yet there is no competition between
manufacturers as many products are imported. Nonetheless,
depreciating local currency has driven price of premium food in the
past 2 years.
It is expected that the market for free from food will expand
averagelyat2%annually,withsales reaching17.5billion rubles (295
millionUSdollar) in 2021.
Consumers inRussia are placingmore andmore emphasis on
nutrition, and they are looking for health benefit and free from toxic/
chemical use food. Thesedays, as theeconomystarts topickingup
andwill remain in theuptrend continuously in thenext 5 years, Thai
exportersshouldstart topaymoreattention to the increasingdemand
fororganicor free from food,whichconsumersarewilling topayextra
for, inRussia.
