Delicious Moscow export: what countries are recipients of the capital's confectioners products

Moscow-made goods are sold in more than 180 countries, and one of the most promising export niches is confectionery. Sweets from Moscow were sold to 61 countries last year. Experts say that in addition to traditional consumers in the CIS countries, Moscow producers should take a closer look at the preferences of sweet tooths in the Gulf and Asia-Pacific countries. What are the countries that like the Moscow confectionery now and target markets of Moscow producers for the future — read this mos.ru article.

Chocolate is the staff of life

According to the Mosprom Center the export volume of Moscow confectionery products exceeded 166 million dollars (or almost 70 thousand tons of the finished product) in the 11 months of 2020. Compared to the same period in 2019 the exports increased by 11 percent.

“The most popular confectionery product was chocolate — it was exported in the amount of 80.45 million dollars, which is seven percent more than in 2019. It is followed by flour confectionery products — 61.45 million dollars, export growth amounted to 17 percent. The sugary confectionery products, including fruit pastila, jelly candies, and sugar candies are the third in the export volume. They were purchased in the amount of 24.12 million dollars, which is nine percent more than in 2019. Moscow sweets are supplied to 61 countries”, — said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.

He noted that Belarus, Kazakhstan, Mongolia, Azerbaijan, Germany and the USA are the key trading partners of the Moscow-based companies. These countries’ share of Moscow confectionery exports is 65 percent.

The most attractive regions for exporting the Moscow sweets are the CIS countries. Experts explain this fact by their geographic proximity, long-established trade relations and interest in the supply of products from the Russian capital.

Belarus sees the increase of demand for Moscow chocolate, Kazakhstan — for fruit pastila, white chocolate and sugar candies, and Kyrgyzstan — for pastries: waffles and sweet cookies. Mosprom experts forecast that in 2021 the volume of Moscow confectionery products export to Kazakhstan can reach 32.5 million dollars, and to Kyrgyzstan — as high as 8 million dollars.

Promising Persian Gulf

One of the most promising sales regions for Moscow confectioners are the Gulf countries. The economy is intensively developing here and interest in foreign sweets is growing rapidly.

“Some Moscow companies opened representative offices in the Gulf countries after successful supplies of their products to the region. For example, one of the capital's honey-souffle producers opened its cafe in Dubai. In 2020 the company signed contracts for the supply of products to Saudi Arabia for 10.5 thousand dollars and to Qatar for 10.3 thousand dollars”,— said Alexey Fursin, head of Moscow’s Department of Entrepreneurship and Innovative Development.

In 2019 Russia and Saudi Arabia, one of the key countries of South-West Asia, signed a Memorandum on the mutual expansion of agricultural and food products export. The document provides for an increase in the bilateral trade volume in terms of supply of wide range of products from Russia including confectionery, cereals, peas, lentils, poultry, lamb, dairy and other products.

Export volume of these goods from Russia to Saudi Arabia doubled in 2020. It is expected that the volume of the Russian agri-food industry product supplies may exceed two billion dollars by 2024.

“Imported confectionery products are very popular with local consumers in the Gulf countries, as Arab entrepreneurs consider them to be of higher quality. Another factor of increasing demand for Moscow's confectionery products may be a high level of chocolate confectionery consumption. Experts consider the United Arab Emirates to be among the leaders in the import of chocolate to the region, followed by Saudi Arabia. 2019 saw these countries import volumes to be as much as 672.88 million dollars and 516.39 million dollars, respectively", — said Alexander Prokhorov, head of Moscow’s Department of Investment and Industrial Policy. 

The potential for confectionery exports to the Gulf countries in 2021 is estimated at one million dollars. According to forecasts, Saudi Arabia will buy 900 thousand dollars worth of sweets and the United Arab Emirates — 100 thousand dollars.

But Moscow exporters have to be ready for high competition with international companies including holding companies that have been successfully operating in the Middle East market for many years.

A closer look at the East

The undisputed leaders in terms of economic development rate are Asian countries. In experts’ opinion sweets manufacturers should take a closer look at the markets of China, Japan and Korea. Three key factors make them promising markets for sweets, cookies and chocolate from Moscow: interest in imported high quality products, receptive domestic market and increase in per capita income.

“The export of confectionery products of high cost price and final price can be especially successful. Local Asian manufacturers are able to satisfy domestic demand in the low and medium segment, while the market for high-value products remains open to foreign manufacturers. The growth of incomes and improvement in the quality of life prompt people of Asian countries to be more careful and selective when choosing products, and they traditionally consider imported sweets to be of high quality”, — emphasizes Natalya Shuvalova, General Director of the Mosprom Center.

Experts point out that Asian shoppers are looking for a variety of assortments and ready to taste products with unusual ingredients. They prefer imported products in bright and eye-catching packaging. Another important factor is the trend towards consuming healthy food. Therefore, Moscow exporters should add confectionery with natural ingredients, fruit juices or berries to their product lines.

The markets of China, Korea and Japan will see, according to experts, the greatest demand for milk chocolate products, sweet cookies and cookies with chocolate chips, as well as pastila and jelly candies. The potential volume of Moscow sweets exports to China in 2021 is estimated at 7 million dollars, to Japan at 250 thousand dollars and 150 thousand dollars to the Republic of Korea.

Who is helping the exporters

To support the Moscow's exporting companies, the Mosprom Center and the Moscow Export Center were established in Moscow.

Experts of the Mosprom Center help the Moscow manufacturers, and exporters of agri-food products to find counterparties and negotiate with potential buyers abroad, ensure the participation of companies in international exhibitions. They also organize a buyer's program for countries interested in the products of Moscow manufacturers. In addition, the Center can help analyze the target markets.

Moscow companies can also receive comprehensive support for foreign trade activities at the Moscow Export Center. Here, exporting companies will be helped to prepare documents for receiving subsidies and grants, and provided with free accounts on international marketplaces. The Center's experts conduct personal analytical studies of foreign markets and search for potential buyers at the request of clients. There are many other support programs as well.