The annual per capita coffee consumption in Russia amounts to about 0.7 kg. It is a rather low rate in comparison to, say, Germany where the annual consumption totals 6 kg a year and in Finland where it reaches 9 kg. Speaking about the Russian coffee market it should be noted that the consumer preferences are still in the formation stage. The results of the market research indicate that practically half of the Russian population does not drink coffee at all. Only half of the coffee lovers buy it for the household consumption. Furthermore, on average the Russian coffee drinker spends 5 gram less ground coffee than necessary for preparing a standard quality drink. One third of those who always drink coffee admit that they would drink it more frequently if they could afford it. All these findings show that there is considerable potential for the coffee market growth in Russia.

The roast coffee consumption has been persistently growing in Russia during the last several years. Last year it increased by approximately 15%, although the major part of consumption falls upon instant coffee.

The fast-growing coffee market is attractive for the producers. However, it is worth mentioning that before the 1998 crisis the major part of the coffee shelves in the Russian shops (60% share of the market) belonged to the foreign brands. But now the situation has changed with the mirror effect in flavour of the national producers who have gained the 60% market share of the roast and ground market. Accordingly to the independent market research the sales of Orimi Trade roast coffee brands in 2002 exceeded 15% of the total roast coffee market volume.

There is considerable potential for the coffee market growth in Russia both at the expense of the per capita consumption growth and the increase in the total number of consumers. The increase in the number of producers contributes to the growth of the coffee consumption. The widening of the product range, marketing activities of the coffee producers aimed at promoting coffee drinking make this drink more and more popular and develop the coffee-drinking culture.

The future of the instant coffee in Russia is under strong influence of the customs tariff policy effected by the Russian government. Today the main share of the instant coffee sold in Russia - more than 90% - is imported to the country in consumer packaging, i.e. as finished product. This increases the price of the instant coffee as the customs duties are paid at the rate set for the packaged goods. As a result, the buyer has to spend more money on the instant coffee than he or she would have to if the instant coffee were packed in Russia. The high prices in turn restrain the market development.

Russian association of tea and coffee producers "ROSCHAICOFFEE" - with Orimi Trade as one of its members - takes part in the consultations with the Russian government aimed at differentiating the customs duties levied on the instant coffee to facilitate its production on the territory of the Russian Federation at the price that is expected by the market.

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