Former proprietor of "Elysey" culinary network discloses factors fueling increase in ready-meal costs
Revised Article:
Food prices in Russia spiked by a staggering 13.1% in May 2025 compared to the same time the previous year, as per Sverdlovskstat data. This hike was particularly evident in the fruit and vegetable sector, which saw a whopping 13.2% increase. Meanwhile, non-food prices crept up by a more modest 7.8%.
Economists attribute this rise to several factors, including harsh weather conditions that wrecked crop yields and logistical issues exacerbated by sanctions and skyrocketing fuel and energy costs. These factors collectively contribute to the final price of the products.
The surge in food prices has had a profound impact on ready-to-eat food manufacturers. Last year, DK.RU reported a 14% increase in the frequency of ready meal purchases in Russia compared to 2023, accompanied by a 17% rise in the average check for ready-to-eat meals.
Alexander Ogloblin, owner of "Eda Factory Gebo," explains, "A considerable portion of our costs is raw materials, and we feel the pinch from their increased prices. This, in turn, impacts our prices and ultimately affects consumers."
Previously, Ogloblin shared his insights on the prospects for the ready-to-eat food services sector in a column for DK.RU. He posits that people are increasingly opting for convenience over spending time in the kitchen, leading to a surge in demand for ready-made meals. As a result, Ogloblin's team at "Eda Factory Fervronya" has revised their product line to cater to cost-conscious customers by adjusting prices.
While Russia's overall retail market is experiencing a slowdown, food remains the sole sector showing growth. However, the continuous inflation and economic uncertainty create an environment full of challenges for ready-to-eat food producers, as they struggle to balance profit margins with fluctuating costs and a shift in consumer behavior.
Read also on DK.RU: Mining industry in the region decreased by 1%, processing - increased by 8.1%.
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- The rise in food prices, particularly in the fruit and vegetable sector, has spotlighted the need for businesses in the personal-finance sector to provide guidance on managing expenses related to food-and-drink.
- The mining industry's decline, coupled with the increasing costs in the food sector, has steered a larger portion of the public's finance toward lifestyle choices, such as the preference for ready-to-eat meals over home-cooked meals, creating new business opportunities in the finance industry.
- Amid the unpredictable economic climate, with factors like inflation and fluctuating costs in the food business, individuals and businesses alike are seeking advice from financial experts on strategies for effective budgeting, investment, and long-term financial planning.
