The Russian hot drinks market registered strong growth from 2013 to 2017. The growth of the market is expected to decelerate over the forecast period from 2017 to 2022.

Russia faced several socio-economic challenges, including high inflation during the review period. Manufacturers in this market experienced rising production costs, which resulted in rising per-unit price of the end product. Therefore, customers have created demand for some high-value products. However, tea is considered the traditional hot drink in Russia. Therefore, demand for mid-priced tea remained strong.

The Russian hot drinks market had total revenues of USD8,233.2 million (mln) in 2017, representing a compound annual growth rate (CAGR) of 9.4 percent between 2013 and 2017. In comparison, the Czech and the Polish markets grew with CAGRs of 2.9 percent and 3.7 percent respectively, over the same period, to reach respective values of USD457.9 mln and USD2,758.4 mln in 2017.

The market consumption volume increased with a CAGR of 1.9 percent between 2013 and 2017, to reach a total of 458.2 mln kilograms in 2017. The market’s volume is expected to rise to 491.0 mln kilograms by the end of 2022, representing a CAGR of 1.4 percent over 2017-2022.

Hot tea accounted for the highest value in the Russian hot drinks market in 2017, with total sales of USD4,458.0 mln, equivalent to 54.1 percent of the market’s overall value. In comparison, sales of hot coffee reached the value of USD3,622.1 mln in 2017, equating to 44.0 percent of the total market value.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 5.2 percent over 2017-2022, which will drive the market to a value of USD10,584.9 mln by the end of 2022. Comparatively, the Czech and the Polish markets will grow over the same period with CAGRs of 2.5 percent and 3.8 percent, respectively, to reach the values of USD519.3 mln and USD3,326.2 mln in 2022.