Hot Drinks in Ukraine
Euromonitor International's Hot Drinks in Ukraine market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 52 | Publication date: Jun 2006
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Executive summary
Hot drinks benefits from growing consumer incomes and increased purchase of premium products
In 2005, the hot drinks market in Ukraine benefited from growing consumer incomes, which led to a rise in current value retail sales of 23%. Volume consumption also increased as more consumers opted for higher-priced varieties of hot drinks. The developing culture of tea and coffee consumption noted by industry experts resulted in more Ukrainians being willing to pay for high-quality hot drinks. Hence, the unit price of hot drinks increased throughout the review period. This was characteristic of cities, where living standards are higher. By contrast, for low-income consumers, price remained an important factor influencing consumer choice.
Coffee records the most dynamic volume and value growth, led by convenience products in instant coffee
Coffee was the most dynamic hot drink in both volume and value terms during 2005. Instant coffee accounted for the bulk of volume and value sales, and was further expanded by 3-in-1 instant products. New companies entered instant coffee with new products. Cofi Cofi was among the most successful launches of the review period. At the same time, horeca was a dynamic distribution channel for coffee. More coffee houses sprung up in the country, and consumer tastes became more exquisite. A coffee-drinking culture developed throughout the review period, with a larger number of fresh coffee admirers able to tell the difference between different varieties of coffee.
Tea records healthy value sales with upsurge in the premium tea segment
Tea recorded rather sluggish volume growth in 2005, characterising Ukraine as a nation not keen on tea-drinking. Tea suffered from close competition with local varieties of drinks, as well as carbonates, juice and bottled water. Nevertheless, tea recorded healthy value sales in 2005, because of an upsurge in the premium tea segment and eventual reduction of the economy tea segment. Higher value sales were also generated by more customers turning to tea bags rather than loose tea. Convenience became a priority, in view of increasingly hectic lifestyles. Furthermore, expensive exotic-flavoured tea and tea with dried fruits and other additions started to proliferate in cities and impacted on growing value sales.
Strong competition in all price segments leads to development of new products
In 2005, the hot drinks market in Ukraine was represented by a significant number of local and foreign players, which competed in various price segments. Traditionally, upper-priced segments are assigned to multinationals, while domestic manufacturers stick to economy and mid-priced segments. Competition is therefore strong in all price segments. It is not uncommon for operators to have a number of brands targeting different price segments. To remain competitive, manufacturers actively introduce new products, and in 2005, the number of these was quite significant.
Low per capita consumption of hot drinks offers good future prospects
In 2005, per capita consumption of hot drinks in Ukraine was far below European standards in both volume and value terms. Economic factors and prospective consumer expenditure will determine the forecast performance of the market. As soon as living standards improve significantly in the country, more people will start buying larger volumes of high-quality tea and coffee. Hot drinks that are convenient to consume will become popular. This will be particularly true for tea bags and coffee mixes.
Table of contents
HOT DRINKS IN UKRAINE : MARKET INSIGHT
EXECUTIVE SUMMARY
HOT DRINKS SALES
Market Performance
Table 1 Retail Sales of Hot Drinks by Sector: Volume 2000-2005
Table 2 Retail Sales of Hot Drinks by Sector: Value 2000-2005
Table 3 Retail Sales of Hot Drinks by Sector: % Volume Growth 2000-2005
Table 4 Retail Sales of Hot Drinks by Sector: % Value Growth 2000-2005
Competitive Environment
Table 5 Hot Drinks Company Shares by Retail Value 2001-2005
Table 6 Hot Drinks Brand Shares by Retail Value 2002-2005
Retail Distribution
Table 7 Retail Sales of Hot Drinks by Distribution Format: % Analysis 2000/2005
Table 8 Retail Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2005
Retailer Activity and Private Label Trends
Forecast Market Performance
Table 9 Forecast Retail Sales of Hot Drinks by Sector: Volume 2005-2010
Table 10 Forecast Retail Sales of Hot Drinks by Sector: Value 2005-2010
Table 11 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2005-2010
Table 12 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2005-2010
DEFINITIONS
LOCAL COMPANY PROFILES - UKRAINE
GALKA LTD SP - HOT DRINKS - UKRAINE
COMPANY BACKGROUND
RECENT NEWS
Summary 1 Summary - Galka Ltd SP Operational Indicators 2004-2005
PRODUCTION CAPACITY
Summary 2 Summary - Galka Ltd SP: Production Statistics 2005
MONOMAKH VAT - HOT DRINKS - UKRAINE
COMPANY BACKGROUND
RECENT NEWS
Summary 3 Summary - Monomakh VAT Operational Indicators 2005
PRODUCTION CAPACITY
Summary 4 Summary - Monomakh VAT: Production Statistics 2005
ORIMI TRADE OOO - HOT DRINKS - UKRAINE
COMPANY BACKGROUND
RECENT NEWS
PRODUCTION CAPACITY
Summary 5 Summary - Orimi Trade OOO: Production Statistics 2005
SOLOMIYA SP TOV - HOT DRINKS - UKRAINE
COMPANY BACKGROUND
RECENT NEWS
Summary 6 Summary - Solomiya SP TOV Operational Indicators 2005
PRODUCTION CAPACITY
Summary 7 Summary - Solomiya SP TOV: Production Statistics 2005
COFFEE IN UKRAINE
SECTOR PERFORMANCE
2005 headlines
Volume and value growth led by rising consumer incomes and increased popularity of coffee mixes
Seasonality is a key characteristic of coffee-drinking in Ukraine, with strong competition from soft drinks during the summer months
Instant coffee is most dynamic, with new developments including coffee packaged in sticks
Speciality instant coffee attracts with taste and convenience
Freeze-dried instant coffee appeals to more affluent city dwellers
Value growth exceeds volume growth, reflecting an increase in the unit price
Fresh coffee beans hampered by low penetration and lack of awareness
Success of leading players dependent on first-mover advantage, combining high quality and good promotional support
Forecast performance
Table 13 Retail Sales of Coffee by Type: Volume 2000-2005
Table 14 Retail Sales of Coffee by Type: Value 2000-2005
Table 15 Retail Sales of Coffee by Type: % Volume Growth 2000-2005
Table 16 Retail Sales of Coffee by Type: % Value Growth 2000-2005
Table 17 Coffee Company Shares 2001-2005
Table 18 Coffee Brand Shares 2002-2005
Summary 8 Summary - Coffee: New Product Launches 2004-2005
Table 19 Forecast Retail Sales of Coffee by Type: Volume 2005-2010
Table 20 Forecast Retail Sales of Coffee by Type: Value 2005-2010
Table 21 Forecast Retail Sales of Coffee by Type: % Volume Growth 2005-2010
Table 22 Forecast Retail Sales of Coffee by Type: % Value Growth 2005-2010
COFFEE PODS PERFORMANCE
TEA IN UKRAINE
SECTOR PERFORMANCE
2005 headlines
Volume growth slows down as black tea approaches saturation, while dynamic value growth reflects a rise in premium products
Consumer preferences distributed unevenly according to region
Novelty appeal of other tea leads to dynamic volume and value growth
Increased purchase of premium tea leads to unit price increase
Green tea benefits as a healthy option
Low volume growth of black standard tea and black speciality tea reflects near-saturation, while value growth is boosted by premium varieties
Fruit/herbal tea benefits from developing health and wellness trend
Instant tea hampered by artificial ingredients, poor assortment and strong taste
Leading companies rely on strong brand image and consumer loyalty
Forecast performance
Table 23 Retail Sales of Tea by Subsector: Volume 2000-2005
Table 24 Retail Sales of Tea by Subsector: Value 2000-2005
Table 25 Retail Sales of Tea by Subsector: % Volume Growth 2000-2005
Table 26 Retail Sales of Tea by Subsector: % Value Growth 2000-2005
Table 27 Tea Company Shares 2001-2005
Table 28 Tea Brand Shares 2002-2005
Summary 9 Summary - Tea: New Product Launches 2004-2005
Table 29 Forecast Retail Sales of Tea by Subsector: Volume 2005-2010
Table 30 Forecast Retail Sales of Tea by Subsector: Value 2005-2010
Table 31 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2005-2010
Table 32 Forecast Retail Sales of Tea by Subsector: % Value Growth 2005-2010
OTHER HOT DRINKS IN UKRAINE
SECTOR PERFORMANCE
2005 headlines
Other hot drinks hampered by low manufacturer activity
Flavoured powder drinks is the most dynamic subsector, but remains limited by lack of product assortment
Unit price increase is driven by higher cocoa bean prices and related production cost increases
Other plant-based hot drinks suffers from limited product assortment
Little change in leadership due to lack of innovation
Forecast performance
Table 33 Retail Sales of Other Hot Drinks by Subsector: Volume 2000-2005
Table 34 Retail Sales of Other Hot Drinks by Subsector: Value 2000-2005
Table 35 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2000-2005
Table 36 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2000-2005
Table 37 Other Hot Drinks Company Shares 2001-2005
Table 38 Other Hot Drinks Brand Shares 2002-2005
Summary 10 Summary - Other Hot Drinks: New Product Launches 2004-2005
Table 39 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2005-2010
Table 40 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2005-2010
Table 41 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2005-2010
Table 42 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2005-2010