The Russian veterinary medicine market grew by 22% in January-July 2023

In the first seven months of 2023, the total sales volume of veterinary drugs on the Russian retail market reached 19.8 billion rubles. (at retail prices, including VAT). Ruble dynamics amounted to 22% compared to the same period last year. This was reported by the analytical company RNC Pharma.

Analysts note that almost half of all sales of veterinary drugs occur in the Central Federal District, which also leads in terms of overall dynamics - 26%. However, this is due to the infrastructural features of the region; the main logistics and data centers of the largest Russian marketplaces, which sell goods to other regions, are located here. As a result, in the sales structure of the Central Federal District, the online channel accounts for 39% of the total volume in money. It is significant that over 99% of online trading is geographically carried out in three regions - Moscow, as well as the Moscow and Ryazan regions. Moreover, the monetary volume of online transactions in the Ryazan region exceeded, and in Moscow almost equaled the offline channel.

If we consider only offline, then, on the contrary, the Central Federal District has the lowest sales growth rate at 3%, since online sales have become the main driver in central Russia. While in other regions the figure exceeded 10%. The leader was the Urals with an indicator of 22.9%. However, the Volga region lags behind by only 0.1%. The outsider in terms of dynamics, with the exception of the Central Federal District, was the North-West, with an indicator of 12.2%. If we talk about quantitative indicators, despite the low growth rates, 38% of offline sales in rubles still occur in the Central Federal District. It is followed by Southern (16%), Volga (13%), Northwestern (10%) and Siberian (9%). However, if the dynamics remain at the same level, the Siberian Federal District will soon take fourth place. The Urals Federal District (7%), Far Eastern Federal District (5%) and North Caucasian Federal District (3%) complete the ranking.

The natural sales volume for the analyzed period amounted to just under 121 million minimum dosage units (MDU). This is 12% higher than the January-July 2022 figures. Russian companies account for 68.5 million minimum units sold, which is 56.6% of the total volume. Over the past year, this figure has decreased significantly; in January-July 2022, Russian companies accounted for 59.4% of the market, but in ruble terms the share increased from 28.9 to 30.6%. 

Since the beginning of the year, the range of veterinary products has continued to grow, compared to January-July last year, largely due to the efforts of local market participants. The total number of brands represented in retail reached 1,599 items, an increase of 70 (29 of them Russian). Domestic companies show even more impressive figures in terms of increasing the number of product items - 74 out of 132 new SKUs. Good performance is also demonstrated in terms of introducing new INNs - out of 29 items that appeared on the market, local manufacturers were noted in 18 positions.

Volume and dynamics of the offline channel of the retail-commercial market of veterinary drugs in Russia by federal districts for January-July 2023, in monetary terms, including VAT.

In 2023, the retail audit project of the veterinary market of the analytical company RNC Pharma was reformed due to an unprecedented expansion of the sample size, including by ensuring full coverage of the online channel. In this regard, data for historical periods has been recalculated upward; the estimate of the total market volume has increased within the range of 20-22%.