FoodNet - Part 2. The FoodTech market in Russia

The second part of the research presents the current state of the FoodTech market in Russia. The most developed segments in the country are described, the analysis of the activity of market leaders is carried out and the main features of the Russian FoodTech market are revealed.

FoodTech market segments in Russia

Food delivery

Description:

• The most developed sector of the FoodTech market in Russia.
• Includes the delivery of ready-made meal kits, products with recipes, food delivery from restaurants and grocery stores, as well as the farm-to-table concept and dark kitchens.

Leading companies:

• Ready-made meal kits: Justfood, BeFit, Grow Food, Performance food, Juicy food, Easy Meal.
• Products with recipes: Elementaree, Yandex Chef, Uzhin Doma, Vkus na Dom, ChefMarket, fruitpack, Foodplan.
• Delivery from restaurants: Delivery Club, Yandex Eats, Chibbis, Broniboy, Zaka Zakka, Arena Serve, Le Click.
• Delivery from grocery stores: SberMarket, Pyaterochka, Yandex Lavka, Utkonos, igoods, Azbuka Vkusa, Perekrestok.
• "Farm-to-table": Esh Derevenskoe, Kilo Vkusa, LavkaLavka, Mestnaya Yeda, Eco-Lakomka.
• "Dark" kitchens: Local Kitchen, Dostaevsky, Gotovo, Mnogo Lososya, Varlamov Est.

Growth dynamics:

• In 2020, the turnover of online grocery sales totalled RUB 155 bln, a 3.5-fold increase compared to 2019.
• Turnover in online sales of ready-to-eat food totalled RUB 135 bln, a 3-fold increase compared to 2019.
• Turnover in diet meal delivery totalled RUB 11 bln, an increase of 53% compared to the previous year.

Optimisation services

Description:

• Includes catering business process automation and data management solutions.

Leading companies:

• Robotic automation and smart kiosks: Delivery Club Daily, Naladinn, brisky, Self., Uvenco; Hello, foody!; DirectDairy, VkusVill.
• Automation in HoReCa: Le Click, Presto, Sber Food, Chuser, iiko, Docs in box, r_keeper.
• Data management: LoyalityLab, tealsy, Plazius Marketing Cloud.
• Supply chain optimisation: Smart Seeds, ingredients.pro, AgroCargo, Yorso, Vito House, Agro24.
• Catering: CaterMe, Catery, Obed.ru.

Growth Dynamics:

• The revenue of companies offering data management solutions grew from 2016 to 2020.
• Companies offering digital logistics platforms and online marketplaces for wholesale trade also tend to show revenue growth, with the exception of 2020, which was a crisis year.

Innovative products and waste management

Description:

• Includes the development and production of superfoods and other innovative products, as well as food waste management and innovative packaging.

Leading companies:

• Innovative products: Solixant Biosystems, Neoron, sunprotein, Octa, Evo food, Prana, GreenWise.
• Content aggregators: Yedadil, Vrestorane, Afisha Restaurant, Restorating, To Mesto, Restoclub.
• Waste management: Doggy Bag, Eaty eat, Last Box, Foodcast, Edao, Eat me.
• Innovative packaging: Biobox, Cleapl, DoEco, Jet Bottle, Geovita, Ecovilka.

Growth dynamics:

• The Russian alternative milk market is expected to have a turnover of over RUB 5.5 bln in 2021 and RUB 6.7 bln in 2022.
• Trends towards consumption of alternative products and eco-friendly lifestyle are becoming increasingly popular in Russia.

Conclusion

The study emphasises the importance and rapid growth of various segments of the FoodTech market in Russia. Key focus areas include food delivery, automation of catering processes, innovative product development, waste management and production of environmentally friendly packaging. Each of these segments shows significant growth prospects and is attracting major investments. FoodTech companies play an important role in creating more sustainable and efficient food production and consumption systems.