Russia-made goods replacing its imports, says Nielsen

Russia-made products accounted for 83 per cent of the country's market for common consumer goods in the first half of 2022, up 4 per cent on a year before, according to a report published by NielsenIQ on Tuesday.

Domestic production of so-called fast-moving consumer goods is filling shelves as imports slump amid Western sanctions against Russia.

The sanctions, imposed after Moscow deployed tens of thousands of troops to Ukraine in late February, have prompted scores of foreign companies, many in the consumer goods sector, to quit the country.

Some of the biggest declines in foreign goods occurred in the alcohol market, where Russian beer made up 89 per cent of sales in the first half of 2022, up from 79 per cent a year before, the Nielsen data showed.

Beers produced and sold by foreign brewers who had announced plans to exit Russia were still on sale in supermarkets and stores in Moscow last week, highlighting how long it can take for consumer-focused restrictions to have an impact.

"The assortment of goods available for consumers on shop shelves has narrowed," Konstantin Loktev, retail director at NielsenIQ Russia said in a statement, identifying one of two major changes to hit the industry.

"In this difficult period, a second trend began to develop - goods that have disappeared from shelves have started to be actively replaced in the consumer basket by brands produced in Russia, for which large opportunities have opened up."

The proportion of snack foods and personal hygiene products produced in Russia also jumped, the data showed.