Coffee Market Analysis
The coffee industry is rapidly growing in Russia, and cafés are becoming more and more popular. Overall coffee consumption in Russia is growing at a rate of about 5% per year (see RIR article and excerpt from Euromonitor report), with natural ground coffee growing at a higher rate of almost 9% per annum (see Export.by report).
Coffee Sales in Russia
Out-of-home consumption of coffee is continuing to increase. According to a recent USDA report, Fast food outlets, casual restaurants, and coffee houses are some of the most popular and fastest-growing sectors in Russia, growing at a rate of over 6% per year. In 2011 the cafés/bars sector saw an overall 14% increase, which was higher than the CAGR for this sector over the previous 5 years per Euromonitor report. And RBC Research indicates that the most promising and dynamic segments of the Russian foodservice market are fast food and coffee houses/shops. Russia is considered to be one of the largest and most promising European markets for coffee shops.
The Economic and Investment Climate
Ufa and Bashkortostan show great promise for economic development. Ufa is ranked as one of the top six cities in Russia for investment attractiveness by RosBusinessConsulting, and in the top ten according to “Financial Times”.
read moreThe Competition
There are 37 coffee shops in Ufa already, although few offer premium fresh-roasted coffee. We have visited many of these coffee shops, and have found very few that offer a quality coffee product, and in most cases we have found their service less than desirable. And none of them offer the combination of premium coffee along with social and English-related events that we intend to offer.
read more