Regional demand drives Russia’s FMCG e-commerce growth
In 2024, Russia’s online grocery market surpassed a trillion roubles in sales for the first time, increasing by 44% year-on-year from ₹72,392 crore (824 billion RUB) in 2023 to a new high of ₹1.05 lakh crore (1.2 trillion RUB).
According to e-commerce specialists Data Insight, the number of online grocery orders in Russia hit 788 million for the year, a 33% annual increase.
Mikhail Burmistrov, CEO of Infoline-Analytics, provides a similar assessment. He reports that total online food sales—including marketplace transactions but excluding alcohol sales via online order and in-store pickup—increased by 40% in 2024, rising from ₹80,554 crore (918 billion RUB) to nearly ₹1.14 lakh crore (1.3 trillion RUB).
Research firm Nielsen has also observed similar dynamics. According to Konstantin Loktev, Executive Director at Nielsen, Russia’s online fast-moving consumer goods (FMCG) market is expanding at an annual rate of 35%. Regional markets, in particular, experienced rapid growth of around 40% in 2024.
Mr Loktev predicts continued expansion in 2025 but suggests it would be more accurate to describe this as “market development” rather than simple “growth.” He explains that the sector is transitioning from extensive expansion—driven by new customers and territories—to intensive development, with an increasing share of sales occurring online and the importance of e-commerce in consumer spending continuing to grow. Even in cities with the highest rates of e-commerce, significant potential remains untapped.
On the other hand, Data Insight notes that the pace of growth slowed throughout the year. According to senior analyst Olga Pashkova, this deceleration was primarily caused by the high cost of delivery services and a shortage of couriers. She adds that much of the sector's expansion was fuelled by promotional campaigns, which made online shopping more attractive than traditional grocery purchases. However, as these promotional activities declined, their impact on sales also diminished.
Read more here about rapidly growing online sales of home appliances.
Source: Vedomosti