
Following nearly five years of decline, Russia saw a rise in pet food imports from Europe, China and some new countries in 2024. According to market players, the switch of trends is accompanied by an unprecedented upward price rally in the Russian market.
The Russian state statistical service Rosstat calculated that over the past year, the average price of pet food jumped 32%. In October, the figure crossed a mark of Rub 400 (US$4) per kilogram driven by a mix of factors. The price surged nearly 80% in the premium segment compared with the previous year.
Grigory Balagurov, director of the Law and Health Fund, an independent NGO, said pet food prices in Russia have surged due to rising production and logistics costs and the expenditures associated with mandatory state labeling. The Russian government introduced mandatory state labeling of dry pet food beginning October 1, 2024, and wet pet food beginning March 1, 2025.
The move's impact on shelf prices remains unclear. The Center for Development of Prospective Technologies, a state operator of the labeling system, insists the cost of labeling is limited to Rub 0.50 (US$0.005) per product pack, meaning it should not impact operational costs at all. Pet food companies, however, argue that to match the new requirements, they need to purchase new expensive labeling equipment, train staff and bear additional costs.
A sharp Russian ruble devaluation at the end of the year likely also contributed to the price dynamics.
Domestic production faces headwinds
Sergey Dankvert, head of Russian veterinary watchdog Rosselhoznadzor, revealed in an interview with state news outlet TASS in December 2024 that his company registered a tangible rise in domestic pet food production in 2024. Dankvert has not provided additional details, only emphasizing that Rosselhoznadzor's efforts contributed to the growth and made Russian pet food safer.
Rosstat estimated during the first 10 months of 2024, Russian pet food production climbed by 8.2% compared with the previous year. Again, no concrete figures were provided. Rosstat did note in September 2024 that Russian pet food production amounted to 138,000 tonnes, which was 4.2% higher than in September 2023.
Independent players admit that Russian pet food production faces certain difficulties. Balagurov warned, "The departure of foreign brands has had a serious impact on the market, as they [Western players] used to contribute to maintaining a competitive environment. As a result, Russian producers lost incentive to develop new products and innovative diets."
Pet food producers, in turn, argue their development opportunities were largely undermined by the Russian Central Bank's decision to jack up key interest rate to 21% -- an historic height -- during the October 2024 board meeting. As a result, commercial loans have become almost unaffordable for Russian pet food companies at the end of 2024.
Imports recovers
Against this background, Russian pet food imports bounced back in 2024, following at least five years of steady decline.
During the first nine months of 2024, Russia imported pet food from Europe worth €737.6 million (US$751.9 million), compared with €614.5 million in the previous year. Germany saw a 12% rise in deliveries to €301 million, and Italy saw a 53% hike to €113.6 million. Deliveries from Austria and Belgium jumped by half to €66.9 million and €31.1 million, respectively. Poland, in turn, registered a 114% surge in pet food exports to Russia, reaching €28.7 million.
Not all European countries, however, expanded sales to Russia. Spain, which used to be the largest supplier, nearly halted exports, which plunged from €546.2 million during the first nine months of 2023 to only €1.1 million in 2024. Exports from the Czech Republic also nearly stopped, as deliveries plunged from €276.5 million to €1.9 million.
As in previous years, the restrictions have been primarily attributed to Rosselhoznadzor's efforts to ban pet food supplies from certain European pet food factories.
New trade partners
A noticeable trend of the past year is that pet food companies from the BRICS trade bloc have actively started exploring the opportunities offered by the Russian market. During the first 10 months of 2024, Chinese pet food exports to Russia climbed 7% to $52.2 million.
Over the past few years, China has emerged as the key trade partner for Russia, exporting cars, equipment and machinery and importing oil and fuel. The trade growth was moderate in the pet food segment, however, since Russian customers are still cautious about switching their pets to Chinese pet food.
Russian market players also see a rise in pet food imports from Brazil, though no concrete statistical data is available to illustrate this trend yet. "There is not a single global pet food manufacturer in Brazil," said a source in the Russian pet food industry who wished not to be named told local press. "They simply cannot compete with local producers due to cheaper labor, energy and food [in Brazil compared to other countries].
"Accordingly, the production cost in Brazil is several times lower than in Europe, and at the same time, the competence is high," the source continued. "The Russian pet food market is currently being restructured, and the EU is inexorably giving way to Brazil and China. Brazil also accepts payments in rubles."