World meat industry news

Russians are switching to a new lean consumption model, choosing goods at a lower price and are increasingly focusing on discounts, Igor Karavaev, president of the Association of Retail Trade Companies (AKORT), told RIA Novosti.

"Consumers have become more frugal. This is partly due to a slowdown in demand after a surge in shopping activity in March, but in general, we are seeing a transition to a new, more frugal consumption model. Buyers have begun to choose low-price products more often, they are increasingly focusing on discounts," — he said.

According to him, the structure of consumer spending has also changed. So, a year ago, it was dominated by non-food products, and in July 2022, the main share of expenditures (almost 38%) fell on food. At the same time, the share of spending on non-food products decreased from 41% to 36.8%.

"In all types of retail chains, the demand for retailers' own brands is growing: over the past year, the share of sales of private label goods has doubled - in the whole market it exceeded 13%. Demand for private labels is growing especially dynamically in the non-food category - their share in the sale of such goods is about 30%... If we talk about the demand for specific product groups, then there is a steady high demand for dairy and meat products, alcoholic beverages and confectionery, especially chocolate," Karavaev concluded.