In January–November 2023, veterinary drugs on the Russian retail market went up in price 26.5% from the same period in 2022. The market saw the highest rate of price growth in the first months of 2023 (Fig. 1), and a surge in inflation in June–August 2023, which was associated with the ruble devaluation, leading to a correction of prices for imported products on the domestic market. By the end of the year, price growth rates stabilized; with the inflation rate in November 2023 at 20.8%.

Fig. 1. Inflation rates* in the veterinary retail market in January–November 2023

There was a significant difference between the price rates for imported and Russian-made drugs. For example, in January–November 2023, the price for imported drugs increased by 35.8%, while the price for Russian-made products grew by only 12.6% (Fig. 2). The prices for foreign products went up in the spring and summer; the prices peaked in July at 59.4%. At the same time, these growth rates determined the growth rates in the whole market and were heavily influenced by the situation in the foreign exchange market, especially when parallel imports were involved.

The inflation rate for Russian-made drugs in the analyzed period had a clear downward trend. It peaked in January 2023 at 35.8%, reaching a comfortable 10.7% by May 2023 and then dropping to its lowest in November 2023 (8.4%).

Fig. 2. Inflation rates* in the veterinary retail market in January–November 2023 (imported / Russian-made)

The inflation rate differed from market to market in 2023 (Fig. 3). Veterinary drugs sold online grew in price by 45.2% in January–November 2023 against 22.8% in the offline market. This is the result of a large number of foreign brands on the online market, many of which are parallel-imported.

The inflation rate in the offline market was higher than that in the online segment only once, at 44.9% in January 2023. After that, the inflation rate went down, reaching 18.9% in November 2023. The inflation rate in the online market peaked twice: at 56.3% in February 2023, and at 101.8% in July 2023.

Fig. 3. Inflation rates* in the veterinary retail market in January–November 2023 (online / offline)