Russian pet food producers aim to increase market share
In a challenging pet food market, Russia’s domestic manufacturers compete with international companies.
Since the crash of socialism and the opening of borders for free trade the Russian pet food market has been strongly dominated by international companies. According to data from Russia’s Association of Pet Food Producers, international pet food companies own an 80–85 percent share in total pet food sales. However, the situation may change in the coming years under the influence of a changing market.
Russian pet food grocery shelves are dominated by foreign brands. | Vladislav Vorotnikov
Domestic pet food opportunities in a growing market
Domestic pet food companies in Russia can now successfully compete with foreign producers in terms of product composition, according to Dmitry Trukhanov, brand manager of R-Trade, a Moscow-based manufacturer of pet food. In the last couple of decades, he said, Russian companies have obtained market experience and have good formulas, even operating in the budget market segment. R-Trade currently produces 500–600 metric tons of pet food per month, a lower figure when compared to 2014 or 2015 primarily because company had to raise sales prices, said Trukhanov. He said that some raw materials are imported, so the devaluation of the Russian ruble increased the financial burden on domestic pet food manufacturers. At the same time, international companies, with the use of some internal resources, managed to keep the rise of prices rather moderate.
Russian pet food manufacturer KlinVet has been following a strategy of modernization to succeed in the domestic market. According to Maxim Malagin, director of KlinVet, beginning in 1998 (the founding of the…