Potato processing market in Russia 2019-2020

Russian potato processing market grows at average rate of 30% per year

According to the Center for Market Economics, the potato processing market in Russia is growing at an average rate of 30% per year. By the end of 2019, the volume of production produced in the country reached 0,3 million tons per year.

In the first half of 2020, the volume of processed potatoes reached 168,000 tons and, taking into account the current market growth of 12,8%, according to the forecast, by the end of 2020 it will amount to 340,000 tons.

Some sources claim that the imposition of sanctions had a positive effect on the Russian production of industrial potato processing products. On average, the volume of processed potatoes has grown.

After a sharp drop in production in 2014 by 21,3% to 147,000 tons of processed potatoes due to the imposition of an embargo on the supply of raw materials from foreign countries, in 2015, producers began to compensate for the volume of potato processing. Then, at the start of 2018, the market had reached the volumes of the pre-sanction period.

The highest rates of industrial processing of potatoes in 2019 and 2020 are observed in the Central Federal District (222,000 and 254,000 tons). The volume of processed potatoes by producers in the Central Federal District in 2019 amounted to 75% of the total potato industry in the federal districts.

According to en.potatosystem.ru¸ the Southern Federal District is the second largest federal district in terms of this indicator (16% of the market in 2019). The remaining part (8%) is divided among themselves by the Siberian, North Caucasian and Ural federal districts. In 2020, the share of industrial potato processing products produced in the Central Federal District is expected to drop to 73%.


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