Now most of the population is concentrated in the Kuban River drainage basin which used to be traditional Cossack land. Kuban Cossacks are generally considered to be ethnic Russians now; notable ethnic groups in the area include Armenians who have been settling here since at least the XVIII century.

Krasnodar Region holds tenth place in Russia in terms of gross regional product among the 89 regions. More than 93,000 enterprises operate in the Krasnodar Krai, 539 of them employ more than 100 workers. More than 43 percent of the Russian food-processing industry is located in Krasnodar. Oil, gas, manganese ores, zeolite, phosphorus-containing raw materials, rock salt, mercury, underground drinking water, thermal and mineral waters, raw resources for construction materials production are found in the region. Oil extraction/transport, petrochemicals, tourism, woodworking/furniture, construction, and light manufacturing also contribute to regional output.

Tourism makes a major contribution to the local economy. The Krai’s Black Sea coast has often been referred to as the "Russian Riviera." Visitors, including 200,000 foreigners a year, come to Sochi for recreation as well as for medical treatment. The proximity to the Caucasus Mountains provides the opportunity to experience the seashore and downhill skiing within a short distance of each other.

Krasnodar is the centre of a highly fertile agricultural region. Agriculture is the most important sector of the city’s economy. Krasnodar bestrides Russia’s “Black Earth” soil belt, boasting a favorable climate and over 100 different crops, as well as orchards, vineyards, tea plantations, citrus trees, rice, sunflowers, and a developed network of processing, storage, and trade facilities. It remains part of the “breadbasket” of the nation. The region produces 10 percent of grain, 30 percent of fruit, 60 percent of oilseed, and 90 percent of rice grown in Russia.