In recent years, Russia’s coffee market has seen significant growth across various segments, including instant coffee, coffee capsules, and whole coffee beans. According to the latest data from OFD Platform, an analytics company, sales of these coffee types have risen compared to last year and over the past five years, reflecting a broader consumer shift towards premium and specialty coffee products.
In the first nine months of 2024, the median price of instant coffee reached 345 rubles, an 8% increase from 2023 and a substantial 85% rise from 2019. Purchases have also surged, with a 10% increase from 2023 and a 37% jump since 2019. Despite a slight decline in market share over the past few years, instant coffee continues to be a major component of Russia’s coffee consumption. According to market research, Russia’s instant coffee market is expected to grow at a compound annual growth rate (CAGR) of 4.42%, potentially reaching a value of US$2.86 billion by 2027.
The market for coffee beans, including whole and ground varieties, has likewise expanded. The median price of coffee beans was 844 rubles, 11% higher than last year and 54% above 2019 levels, with sales volumes up by 7% compared to last year and by 45% over five years. This shift highlights a preference for higher-quality and specialty coffee among Russian consumers, particularly in urban areas. Forecasts project the roasted coffee segment, encompassing both whole and ground coffee beans, to grow at over 6% CAGR from 2024 to 2029, further supporting this trend.
Coffee capsules, popular for their convenience, have also gained traction. The median price for capsules reached 588 rubles, marking a 12% increase from last year and a 69% rise since 2019. Purchases grew by 11% year-on-year and by an impressive 119% compared to 2019, underscoring the appeal of single-serve systems despite their higher cost. Leading brands like Nespresso and Dolce Gusto are capitalizing on this demand, offering variety and ease to an increasingly convenience-driven market.
Interestingly, the OFD Platform report also reveals insights into ground coffee, which saw a median price of 375 rubles in 2024, 6% higher than the previous year and 37% above 2019 levels. However, sales for ground coffee declined by 7% year-on-year, though they remain 17% above the 2019 level, suggesting a fluctuating yet resilient demand in this segment.
Overall, Russia’s coffee market dynamics are shaped by evolving consumer preferences, economic shifts, and a growing café culture in urban centers. Dmitry Batyushenkov, CEO of OFD Platform, attributes the steady demand for coffee in Russia to its embedded role in daily life, enabling continuous sales despite rising raw material costs for varieties like Arabica and Robusta.
Additionally, the demand for home coffee machines has surged, with sales increasing by over 25% in the first three quarters of 2024, highlighting the expanding culture of home coffee brewing among Russian consumers.
As Russia’s coffee market continues to evolve, it is clear that consumer interest is steadily moving toward quality and variety, indicating a promising future for both local and international coffee brands seeking to capture this dynamic market.