In 2012 import of all tea kinds saw year-to-year decline both in volume and value – respectively by 4% and 3%. In Q1 2013 import volume remained unchanged in comparison to Q1 2012 while import value grew by 5%.

Black tea is leading in tea import, both in volume and value with about 91% of foreign supplies. Green tea provides about 8% of import, mate – less than 1% in volume and value. Insignificant share of import falls on other tea kinds (herb tea, rooibos).

In 2012 major supplier of black tea to Russia was Sri Lanka with 36% of import volume and 44% of import value. Second large supplier was India with 26% in volume and 21% in value. China closes top three of black tea supplying countries with 12% of import volume and value.

Meanwhile major supplier of green tea to Russian in 2012 was China with respective 75% and 65% of import volume and value. Sri Lanka was on the second line with 9% of import volume and value in the category. Germany was the third large supplier of green tea to Russia with 5% of import volume and 9% of import value; the country specializes in supplies of value added products.

Meanwhile mate is imported to Russia only by 4 countries. Though mate is believed to be traditional in Paraguay, more than 50% of its import to Russia in volume is controlled by Argentina. One third of mate import to Russia is the product re-exported from Germany. And the third important mate supplier to Russia is Brazil with 18% of mate import in volume. Germany imports to Russia processed and packed retail-ready mate, so it controls the largest share of import value – 40%.

Five largest Russian importers receive more than 70% of imported tea of all kinds. The largest recipient of tea in Russia in 2012 was "Orimi Trade" GK (Saint Petersburg) getting respectively 34% and 32% of imported tea in volume and value. "Unilever Rus" was the second large importer of tea in volume terms and the third large in value terms; this company received 11% of imported tea both in volume and value. Third large share in tea import volume belonged to company "Mai (May)" (Moscow) with 11%. In value terms second large importer was "SDS-Foods" LLC (Moscow) with 15%.

According to "AS Marketing", Russian tea market is close to saturation, so manufacturers will either work to win consumers of substituting products or follow aggressive marketing strategy promoting tea with "extra" health benefits or launching new package designs and formats.

In 2012 import of coffee beans saw 1.5% year-to-year decline in volume and 10% increase in value. Vietnam remained the largest supplier of coffee beans to Russia – 34% of import volume and 20% of import value. Second important supplier was Brazil respectively with 18% and 20% of import volume and value.

In 2012 import of coffee beans was mainly driven by green Robusta beans in large bags supplied for further processing (including production of instant coffee). In volume terms share of Robusta beans constituted 52% of natural coffee import. This coffee kind is cheaper in comparison to other varieties, so in value terms Robusta had only 30% of import. In 2012 share of Robusta in natural coffee import increased. Second large category in import of coffee beans in 2012 was green Arabica beans in industrial package – 37% of natural coffee import in volume and 41% in value. The rest of import volume and value was shared by roasted beans in retail package and ground coffee.

According to Federal Customs Service of Russia, more than 350 companies import natural coffee to Russia, but about 70% of the market is controlled by top five players. The largest importer of natural coffee in Russia is "Nestle Kuban" LLC (Krasnodar Territory) – 33% of import volume and 21% in value. According to "AS Marketing", green Robusta beans meant for further processing constitute 80% of "Nestle Kuban's" import portfolio in volume; share of Arabica beans constitutes 20%*FOOTNOTE. In value terms 33% of natural coffee imported by "Nestle Kuban" for further processing is provided by green Arabica beans; share of Robusta beans constitutes 67%.

Second large recipient of imported natural coffee in Russia is "Kraft Foods Rus" LLC (Saint Petersburg) with 19% of import in volume and 16% in value. Green Robusta beans provide 55% of the company's import portfolio in volume, while green Arabica – 41%. In value terms green Arabica beans imported for further processing constitute 53% of the company's import portfolio, while green Robusta beans – 37%. Besides the named categories, import portfolio of the company includes ground coffee and roasted Robusta and Arabica beans in retail package (about 4% of company's import in volume and 10% in value).

The third large recipient of imported natural coffee in Russia is "Nevskie Porogi (Riffles of Neva)" LLC (Leningrad Region) – 8% of import in volume. Import portfolio of this company is dominated by green Arabica beans, both in volume and value.

In 2012 import of instant coffee saw 5.5% year-to-year decline in volume and 9% decline in value. Instant coffee is mainly supplied to Russia by India – 25% of instant coffee import in volume and 20% in value. Brazil is on the second place respectively with 13% and 16% of import volume and value; Germany is the third large supplier of instant coffee with 11% of import volume and 17% of import value.

Instant coffee market is well consolidated. Top five recipients of imported instant coffee control over 40% of import volume and 50% of its value. "Nestle Kuban" is leading with 15% of instant coffee import in volume and 25% of import value. More than 50% of import portfolio of this company in volume terms is provided by freeze dried coffee meant for industrial use. A quarter of company' import falls on powdered coffee and about 20% - granular coffee.

Second large importer of instant coffee in Russia is "Orimi Trade" with 8% of import volume and 11% of import value. Import portfolio of this company is dominated by freeze dried coffee in industrial package – both in volume (90%) and value (94%).

"Strauss" LLC (Moscow) is the third large importer of instant coffee in Russia respectively with 7% and 8% of import volume and value. Practically 100% of import portfolio of this company is constituted by freeze dried coffee in industrial package. The group of five largest recipients of imported instant coffee in Russia also includes "Sunty" LLC and "Tchibo CIS" LLC (Moscow).

It is obvious that Russian market of tea and coffee got mature, so no impressive growth is to be expected. Next year import of tea and coffee is forecasted to demonstrate same dynamics as this year with 1-2% growth, provided no drastic changes happen to demography and economy of Russia. Consumer preferences will slightly shift to premium tea and natural coffee.

* There were no other declared sorts of coffee.

Research of the Company "AS Marketing"