Competition in the Russian Market of Healthy Drinks in 2012–2021

Abstract

The growing interest in a healthy lifestyle among Russian consumers leads to an increase in demand for healthy food products and beverages, which is reflected in the rather high growth rates of this market and its increased attractiveness for manufacturing companies. In this article, the purpose of the study is to assess the dynamics of the level of competition in the segments of the Russian market of healthy drinks (“Better for You”, “Fortified/Functional”, “Naturally healthy” and “Organic”) and throughout the market as a whole from 2012 to 2021. To achieve the goal, the following tasks are set: 1) to identify the dominant group of players, the degree of differentiation within the group itself; 2) to determine the level of market concentration; 3) to analyze the dynamics of the level of competition from 2012 to 2021. To determine the degree of concentration of market segments, the Herfindahl – Hirschman index (HHI) is used, to identify a group of dominant players and its size – the Lind index (IL) and the concentration coefficient (CRSV), to determine the degree of differentiation between the leading players – a modified version of the Hall – Tideman index (HTSV), to analyze the dynamics of the level of competition, – matrix SV (Strength/Variety). The conducted research shows that for 2012–2021 in all segments of the healthy drinks market, one or another trend of leaving the RO quadrant occurs either by increasing the total market share of leaders, or by increasing the level of differentiation between players. In each of the market segments, there is a tightening of monopolization, in the market as a whole – a complete departure from free competition to natural oligopolization. The composition of the dominant groups in large market segments strongly intersects and includes major international players, although there is a noticeable decrease in their share in the market under consideration.