Health and wellness, premiumisation and convenience are among the trends that are currently proving to be the main drivers for bread. More offerings with additives such as flax or sunflower seeds are being seen, mainly in sliced products, as well as flour mixes with bran and cereals.
In dessert mixes, in which jelly traditionally prevails, new product developments in mixes for cakes, such as brownies or muffins, are being introduced by a number of companies, including Schedro and Pripravka, which could help drive category growth. Dessert mixes has some untapped potential, given it is still a relatively small product area in baked goods.
Frozen baked goods are proving a popular way of obtaining “fresh” baked goods. Semi-prepared baked goods as well as pizza crusts and filo pastry sheets are welcomed as a “cheat” by consumers looking to bake at home but without sufficient time for the full preparation of the end products.
The effects of the legal conflict between Roshen Kondyterska Korporatsia and Kyivkhlib surrounding Kyivsky Tort, the name of a type of cake that has been traditional in the country since Soviet times, are still lingering. Roshen claimed sole ownership of the copyright and design of the cake’s surface as well as usage of the brand name.
Large bread manufacturer Khlibni Investytsiyi opened a new factory near Kyiv for producing frozen baked goods in 2018. The daily volume of production is about 30 tonnes, but will rise to 90 tonnes a day once the plant is operating at full capacity.
There is a growing presence of private label in cakes, especially in the big cities through well-developed national retail chains. This is likely to impact small local bakeries as consumers have high levels of loyalty to well-known large manufacturers like Roshen, Kviten or Kyivkhlib.
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This industry report originates from Passport, our Packaged Food market research database.