Impact of Russia-Ukraine Conflict in Consumer Goods – Thematic Intelligence

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Impact of Russia-Ukraine Conflict in Consumer Goods Thematic Overview

The Russian invasion of Ukraine has had significant impact on all industries including consumer goods. The initial shock of the Russian invasion of Ukraine sent energy prices rocketing, and there was a sudden lack of availability of raw materials and staple crops. This pushed up the cost of living for many consumers around the world. The subsequent sanctions against Russia by many Western economies, including sanctions that restrict flight paths and international shipping, have been met with retaliation from Moscow.

Consumers in rich economies have been sympathetic towards the plight of Ukrainians, and took to social media to demand that global brands stop selling (and making profits) in the Russian market. They led campaigns to stop buying Russian-made goods as well. However, many factors have impacted brands differently, depending on their exposure to various supply chains, the location of their factories compared to their markets, whether the company is publicly or privately held, and the geographic location of their biggest markets.

The impact of Russia-Ukraine conflict in consumer goods thematic intelligence report assesses the Russian invasion of Ukraine on the consumer goods industries. It provides an overview of the current landscape, as well as key players. The report provides an industry-specific analysis based on GlobalData databases and surveys.

Impact of Russia-Ukraine Conflict in Consumer Goods – Key Trends

The main trends shaping the fallout from the Russian invasion of Ukraine over the next 12 to 24 months are classified into raw materials trends, transportation trends, regulatory trends, and social media trends.

  • Raw materials trends: The Russian invasion has disrupted staple crop production and rare gas supply. Russia also banned wood exports to the US and the EU until the end of 2022. Sanctions affecting sources of fertilizer and gas have affected the production and international trade of fertilizers as well.
  • Transportation trends: Many shipping companies are no longer docking in the Russian and Ukrainian ports due to customs checks on all imports and exports from Russia. Furthermore, the Russian closure of airspace to the European operators impacts the transport of consumer goods by commercial aircraft to and from the European countries.
  • Regulatory trends: Sanctions, boycotts, and a ban on Russian banks by the EU are part of the regulatory trends.
  • Social media trends: Boycott of Russian products, halting of trade in Russia by renowned brands, and reviewing of all media and marketing investments in Russia are some of the social media trends.

Impact of Russia-Ukraine Conflict in Consumer Goods - Value Chain Analysis

The value chain impacted by the Russian invasion of Ukraine consists of raw materials, manufacturing, transportation, and trading impact.

Raw Materials: Russia’s options remaining for negotiating with the western nations are valuable raw materials such as oil and gas, aluminum, nickel, and precursors for fertilizer such as potash and phosphates. These materials substantially alter the potential costs of transport and production, as well as the harvest yield. Hence, they have the potential to cause extreme price inflation. The cost-of-living crisis is beginning to have far-reaching economic and human effects on global households, with the poorest feeling the pinch. Moreover, energy prices are set to increase by more than 50%, which will likewise push up the cost of producing raw materials, as well as manufacturing and distribution.

The Value Chain Impacted by The Russian Invasion of Ukraine

The Value Chain Impacted by The Russian Invasion of Ukraine

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Leading Private Companies

Some of the leading private companies associated with this theme:

  • Mars
  • Groupe Lactalis

Leading Public Companies

Some of the public companies associated with this theme:

  • Nestlé
  • PepsiCo
  • AB InBev

To know more about public and private companies, download a free report sample

Consumer Sector Scorecard

At GlobalData, we use a scorecard approach to predict tomorrow’s leading companies within each sector. Our consumer goods sector scorecard has three screens: a thematic screen, a valuation screen, and a risk screen.

  • The thematic screen ranks companies based on overall leadership in the 10 themes that matter most to their industry, generating a leading indicator of future performance.
  • The valuation screen ranks our universe of companies within a sector based on selected valuation metrics.
  • The risk screen ranks companies within a particular sector based on overall investment risk.

Consumer Sector Scorecard – Thematic Screen

Consumer Sector Scorecard – Thematic Screen

To know more about the sector scorecards, download a free report sample

Impact of Russia-Ukraine Conflict in Consumer Goods Market Report Overview

Report Pages 38
Regions Covered Global
Value Chains Raw Materials, Manufacturing, Transportation, and Trading Impact
Leading Private Companies Mars and Groupe Lactalis

 

Leading Public Companies Nestlé, PepsiCo, and AB InBev

Key Highlights

  • The availability of raw materials, difficulty with transport, political sanctions, and consumer-led boycotts have substantially changed how global brands operate.
  • The supply of staple crops is already bound to be impacted next year, as it is unlikely that a sufficient level of planting for next year’s harvest will take place this year.
  • Kraft and ABInBev are set to be impacted the least from the fallout of the Russian-Ukraine conflict because they have been able to stockpile and diversify their raw materials, and their wide geographic spread means they are least impacted by higher transportation costs due to airspace and seaport closures and diversions.
  • PepsiCo is set to be heavily impacted negatively by the Russian invasion of Ukraine because of its manufacturing and market trends.

Reasons to Buy

  • Understand many of the primary, secondary, and tertiary order effects of the Russia–Ukraine conflict in consumer goods
  • Learn about the ways in which the global supply chain is affected by the conflict
  • Find out where the industry hot-spots are and how companies and markets are trying to catch-up
  • Discover how the conflict is impacting global economies and how different actors are responding to the changes.

Kraft-Heinz
AB InBec
the Coca-Cola Company
Unilever
Mars
Heineken
L'Oreal
Danone
Nestle
PepsiCo

Table of Contents

  • 1. Executive Summary
  • 2. Players
  • 3. Thematic Briefing
  • 4. Trends

    • 4.1. Raw materials trends
    • 4.2. Transportation trends
    • 4.3. Regulatory trends
    • 4.4. Social media trends
    • 4.5. Timeline

  • 5. Value Chain

    • 5.1. Raw materials value chain
    • 5.2. Manufacturing value chain
    • 5.3. Transportation value chain

  • 6. Companies

    • 6.1. Private companies
    • 6.2. Public companies

  • 7. Sector Scorecards

    • 7.1. Consumer sector scorecard

  • 8. Further Reading
  • 9. References
  • 10. Our Thematic Research Methodology
  • 11. About GlobalData
  • 12. Contact Us

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