Weight Loss Market Analysis For Russia

Insights: The weight loss and weight control market in Russia amounted to 14,486.6 million rubles in 2018. The market is expected to reach annual revenue of 17,253.03 million rubles by 2023, that translates to an average 3.56% annual growth rate.

About this report: From our market research of the healthcare and weight loss management market analysis in the Russian sector, you will be able to understand the current market value or size of the weight loss industry, it’s annual growth trend and projected value.

Russia weight loss market research requirements

To provide a market research with the following scope: 

  1. Market size including growth and projected figure of the health care and weight loss industry in Russia. 
  2. Provide any other relevant statistics and data related to the industry. 
  3. Reports will come with graphs and charts as necessary and detailed findings of any estimation and calculation made.

Russia’s healthcare and weight loss management market overview

The healthcare market’s turnover in Russia amounted to 3,053.30 billion rubles in 2018 and this market is expected to grow annually by 13.88% based on healthcare consumer spending projected until 2030. The main factor in revenue growth is the increase in prices for medical or health care services and there will also be increased number of appointments in the coming years. 

We’ve summarized our findings in the graphs below and the detailed calculations, assumptions, and estimations of how these figures were derived are found in the “findings” section.

Health care annual market size in Russia (2017 to 2030)
Health care annual market size in Russia (2017 to 2030)
Russia's healthcare turnover market share by segment in 2018: Mandatory healthcare insurance, budget-insurance model, cash payments, shadow segment, and VHI account
Russia’s healthcare turnover market share by segment in 2018: Mandatory healthcare insurance, budget-insurance model, cash payments, shadow segment, and VHI account

The country’s weight loss industry will also see more than 3% annual growth rate led by the dietary products segment. In 2018, this market amounted to 14,486.6 million rubles. According to reports, the increasing number of reported overweight adults in the country will drive the market growth. 

Weight loss market size in Russia, in million rubles
Weight loss market size in Russia, in million rubles

Fig 1: Weight loss channel market share, in-store purchases versus out-of-store purchase; Fig. 2: Weight loss segment market share, dietary products versus slimming teas and weight loss supplements

FINDINGS

Russia’s healthcare market size and projected growth

Russia’s healthcare services market size based on turnover amounted to 3,063.3 billion rubles in 2018, an 11.6% increase from 2017 turnover. Accordingly, the main factor in revenue growth is the increase in prices for medical or health care services and the increasing pattern will see a continued trend in the coming years as Russia’s GDP sees continued growth. 

Russia’s mandatory healthcare insurance, budget-insurance model, cash payments, shadow segment, and VHI account

By segment, according to BusinesStat–the prominent and the largest developer of ready-made reviews of industrial and consumer markets in Russia and the CIS countries–the mandatory or compulsary health care insurance sector revenue will account for 56.8% of the market. The Budget-Insurance Model of Financing Healthcare in Russia and and Cash Payments comes in next at 15.8% revenue share for each, followed by shadow segment (6.7%), and Voluntary Health Insurance or VHI account (4.9%).

By values (in rubles), we calculated the segments as below based on 2018 revenues:

  • Mandatory health care insurance segment = 3,063.3 billion rubles * 56.8% = 1,739.95 billion rubles
  • Budget-Insurance Model = 3,063.3 billion rubles * 15.8% = 484 billion rubles
  • Cash Payments segment = 3,063.3 billion rubles * 15.8% = 484 billion rubles
  • Shadow segment = 3,063.3 billion rubles * 6.7% = 205.24 billion rubles
  • VHI account = 3,063.3 billion rubles * 4.9% = 150.10 billion rubles

Russia’s health care spending

By looking at the previous and projected health care spending in Russia based on percent share on its GDP, annual growth rate will be about 13.88%.

Russia’s health care spending in 2016 

= 6.31% of Russia’s total GDP

= 6.31% * $1.28 trillion

= $83.20 billion (5,512.83 billion rubles)

Projected Russia’s health care spending by 2030

= 6.5% on average of the country’s GDP by 2030

= 6.5% * $7.9 trillion

= $513.50 billion (34,024 billion rubles)

Annual growth rate, using the CAGR formula

= [(2030 value/2016 value)^ (1/number of years between 2016 and 2030) -1]

= [($513.50 billion/$83.20 billion)^(1/14) – 1]

= 13.88%

In our earlier findings, we’ve already identified that the revenue growth rate between 2017 and 2018 was at 11.6% increase.

[Year-by-year calculation of healthcare market size in Russia, in ruble (₽)]

  • 2017: ₽3,063.3 billion / 1.116 = ₽2,744.89 billion 
  • 2018: ₽3,063.3 billion 

We use the healthcare spending calculated annual growth rate to determine the projected value of the healthcare market revenue in Russia;

  • 2019: ₽3,063.3 billion * 1.1388 = ₽3,488.49 billion
  • 2020: ₽3,488.49 billion * 1.1388 = ₽3,972.69 billion
  • 2021: ₽3,972.69 billion * 1.1388 = ₽4,524.10 billion
  • 2022: ₽4,524.10 billion * 1.1388 = ₽5,152.04 billion
  • 2023: ₽5,152.04 billion * 1.1388 = ₽5,867.15 billion
  • 2024: ₽5,867.15 billion * 1.1388 = ₽6,681.50 billion
  • 2025: ₽6,681.50 billion * 1.1388 = ₽7,608.90 billion
  • 2026: ₽7,608.90 billion * 1.1388 = ₽8,665.01 billion
  • 2027: ₽8,665.01 billion * 1.1388 = ₽9,867.72 billion
  • 2028: ₽9,867.72 billion * 1.1388 = ₽11,237.36 billion
  • 2029: ₽11,237.36 billion * 1.1388 = ₽12,797.10 billion
  • 2030: ₽12,797.10 billion * 1.1388 = ₽14,573.34 billion

Weight loss industry market size and projected growth in Russia

The weight loss and weight control market in Russia amounted to 14,486.6 million rubles in 2018. This figure was based on the completed study of the weight loss industry in the country released by the Discovery Research Group. The market is expected to reach annual revenue of 17,253.03 million rubles by 2023, that translates to an average 3.56% annual growth rate. That growth rate was also confirmed by another weight loss market study in Russia released by Triton Market research which found out that between 2019 and 2025, the growth rate of the weight loss management market in Russia will be 3.16% annually.

Dietary products get the largest market share in terms of revenue which is said to be about 9,232 million rubles in 2018, 63.7% market share. The dietary products will record the highest growth rate while the slimming teas and weight loss supplement segments will record a decrease in sales. In Russia, reports confirmed that the obesity rate has almost doubled its numbers in the past few years. For example, while 856.5 out of 100,000 people were considered obese in 2011, that figure stood at 1,245.6 per 100,000 five years later, according to the report. In the latest survey conducted by OECD, about 19.6% of the population aged 15 years and over in the country are considered over weight or obese. 

In terms of sales channel, the out-of- store retail accounts for 74.7% of the market while in-store channel will be about 25.3% share.

[Weight loss market size year-by-year calculation, in ruble ₽ ]

  • 2018 = ₽14,486.6 million
  • 2019(p) = ₽14,486.6 million * 1.0356 = ₽15,002.32 million
  • 2020(p) = ₽15,002.32 million * 1.0356 = ₽15,536.41 million
  • 2021(p) = ₽15,536.41 million * 1.0356 = ₽16,089.50 million
  • 2022(p) = ₽16,089.50 million * 1.0356 = ₽16,662.29 million
  • 2023(p) = ₽17,253.03 million
  • 2024(p) = ₽17,253.03 million * 1.0311 = ₽17,789.60 million
  • 2025(p) = ₽17,789.60 million * 1.0311 = ₽18,342.86 million

Where “p” means its projected value.

If you are interested to know our market analysis of Russia’s loss services, read here: Russia’s weight loss services market size and TAM

Do you want to know your specific industry’s market size and trends? Contact us and we will work according to your budget.

SOURCES AND REFERENCES

  1. https://assets.kpmg/content/dam/kpmg/ru/pdf/2017/03/ru-en-research-on-development-of-the-private-medical-services-market.pdf
  2. https://www.tritonmarketresearch.com/upcoming-reports/russia-weight-loss-diet-and-weight-management-market-2019-2025
  3. Healthcare Resource Guide: Russia
  4. Healthcare in Russia – Statistics & Facts
  5. Анализ рынка медицинских услуг в России в 2014-2018 гг, прогноз на 2019-2023 гг
  6. В 2017 г объем рынка медицинских услуг в России составил 1 529 млн приемов, что всего на 0,4% выше уровня 2016 г.
  7. Russia GDP – Gross Domestic Product 2016
  8. World GDP Forecasts for 2030 – NextBigFuture.com
  9. Growth potential – MD Medical Group
  10. В 2018 г объем рынка медицинских услуг в Москве составил 224,7 млн приемов, превысив уровень 2016 г на 3,1%.
  11. Анализ рынка средств для похудения и контроля веса в России
  12. Исследование рынка средств для похудения и контроля веса в России
  13. Russia’s Obesity Rate Up Almost 50% in 5 Years, Health Ministry Says 
  14. Obesity Update 2017 

At Mhojhos Research, we deliver outstanding market report results across many industries. Market research is key to a new business becoming a profitable entity. It anticipates and minimizes risk, identifies potential customers and helps ensure success.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: