Kazakhstan’s Rakhat targets Asian markets as Russia takes 65% of exports
LOTTE Rakhat is considering expansion into South Korea, Indonesia and Thailand as it seeks a broader export base. Russia currently accounts for about 65% of the company’s exports, while foreign markets generate around 22% of total sales.
Rakhat looks beyond its largest export market
Kazakhstan’s LOTTE Rakhat is considering entry into South Korea, Indonesia and Thailand, seeking to expand its international business beyond a trade network still dominated by Russia. According to Kazinform, citing Kazakhstan’s Ministry of Agriculture, exports account for around 22% of the confectionery producer’s total sales, and Russia receives approximately 65% of those shipments.
The figures underline both the importance of the Russian market and the concentration risk facing the company. Russia provides an established destination for Kazakh confectionery, supported by geographic proximity and longstanding commercial links. Kazakhstan is also a major buyer of Russian chocolate, making the bilateral trade relationship significant in both directions.
Rakhat products are already sold in Central Asia, the South Caucasus, China, Mongolia, Afghanistan and Germany. Shipments to Latvia began in 2026. Adding three Asian markets would broaden this footprint, although neither the company nor the ministry disclosed launch dates, prospective shipment volumes or sales targets for South Korea, Indonesia and Thailand.
Capacity provides room for additional sales
LOTTE Rakhat operates two production sites in Almaty and Shymkent with combined annual capacity exceeding 100,000 tonnes, Kazinform reported. Its portfolio includes more than 500 products spanning chocolate, sweets, biscuits and wafers. The company separately produces more than 80 varieties of chocolate bars.
The manufacturer controls the full chocolate production chain, processing cocoa beans and producing cocoa liquor, cocoa butter and cocoa powder at its own facilities before making finished goods. This vertical integration gives it direct oversight of inputs, recipes and product quality, an important consideration when adapting products for new markets.
About 19.4 billion tenge has been invested in technology and capacity expansion over recent years, according to the Ministry of Agriculture. More than 7.1 billion tenge went to the Shymkent site, where the company is developing additional categories including wafers and corn snacks. These investments give Rakhat a wider range of products to offer distributors, rather than relying only on chocolate bars.
Distribution will determine the scale of Asian growth
The proposed markets differ considerably from Rakhat’s established regional destinations. Building sales in Indonesia and Thailand will require suitable local distribution, positioning and assortment choices. The company’s Halal certification may support access to relevant consumer segments, particularly in Indonesia. Its ISO and HACCP certifications also provide internationally recognized credentials for prospective retail and distribution partners.
South Korea presents a different route. A new phase in Rakhat’s development began in 2013, when South Korea’s LOTTE Confectionery acquired a controlling stake. That ownership may offer useful market knowledge and commercial connections, but the source material does not specify how LOTTE’s distribution network will be used or which Rakhat products could be introduced.
Kazakhstan provides financial and insurance support to domestic producers entering foreign markets, the ministry said. Such instruments can reduce some of the commercial risk associated with testing new destinations, but they do not guarantee shelf space or consumer demand.
Russia will remain central in the near term
The prospective Asian expansion is therefore best viewed as gradual diversification rather than an immediate change in Rakhat’s export balance. With about two-thirds of exports going to Russia, even successful market launches would need to reach meaningful scale before materially reducing that dependence.
Rakhat’s available capacity, broad portfolio and recent investment create a production base for growth. The unanswered questions concern distribution agreements, launch timing and volumes. Until those details emerge, South Korea, Indonesia and Thailand represent potential new channels, while Russia remains the company’s core foreign market.
