Russia’s beer demand will fall by 5-10% in 2024-2025. The decline in beverage consumption will begin at the end of 2024. This forecast was given to socialbites.ca by Yulia Butyrina, Associate Professor of Marketing at Synergy University.
“First of all, this will be facilitated by the economic situation: the expected slowdown in economic growth and real income of the population in the face of high inflation and geopolitical risks, as well as a decrease in purchasing power of consumers. The second factor is demographic changes. The economist noted that in Russia the trend continues to decline in the share of young people (16-29 years old), who traditionally constitute the main audience of beer consumption.
According to him, the country is also growing in the trend towards a healthy lifestyle and giving up alcohol, especially among young people. Accordingly, interest in non-alcoholic drinks, including beer analogues, is increasing.
Butyrina admitted that beer prices will be restrained due to falling demand: producers and retailers will have to adjust the cost of the drink to maintain sales volumes. However, Butyrina is sure that it will not be possible to completely avoid price increases, given the general inflation situation in the economy.
With data NielsenIQ announced that beer sales in Russia in the first half of 2024 will increase by 4.8% in volume and 12.8% in monetary terms.
Previously an expert appreciated The price situation in Russia.