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A REVIEW OF THE FOOD AND BEVERAGE MARKET IN KAZAKHSTAN

The food industry is a critical sector in any economy because production of food has a direct impact on the country’s economic and food security.

In this document, we will review the food and beverage market in Kazakhstan, and try to see what future this sector has, what trends exist in the market today, and what sectors are leading in Kazakhstan.

According to the Kazakhstan Agency for Statistics, in 2009, food and beverage production’s share in the processing industry was about 24% (8.9% of all industrial production). As compared with 2008, the share of food production in the processing industry in 2009 has grown by 4%.

On the whole, in monetary terms, the market slightly decreased in 2009 in comparison with the previous year, and totalled around 940 billion tenge, first of all due to import reduction. But by and large, the market is going through the economic recession quite well.

In 2009, domestic production in kind (volume index) grew although somewhat a little. The growth was about 2%. The domestic production trend in such an important market, with import volumes shrinking down, is a pleasing one.

In monetary terms, the following market segments in Kazakhstan are leaders in production volumes:

flour milling

beverage production

bread baking

dairy sector

In the number of companies which make food and beverages, the flour milling and bread making sectors lead again, as well as alcohol-free drink production and milk processing.

It is also important to understand trade activity in the market. According to statistical data, the food trade recession in 2008 (about 2%) was followed in 2009 by a 2.8% increase in food and beverage trade in Kazakhstan.

This also demonstrates that the population is gradually switching from “economic austerity” characteristic of the first crisis years, and recovers its liberal purchase behavior.

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