Average income in Ukraine is low and so carbonates, due to their more affordable prices than other soft drinks like juice, continued to be the preferred option for many consumers in 2018, especially in rural areas. Although health and wellness concerns are having an impact on the choice of beverages, many consumers are tending to stick with carbonates rather than switch to healthier drinks such as RTD tea or juice.
As the health and wellness trend remained strong in Ukraine in 2018, carbonates which are targeted at health-conscious consumers continued to grow in popularity. As carbonates are perceived as unhealthy due to their high sugar content, manufacturers promoted their sugar-free products, such as Coca-Cola Zero Sugar.
Trends such as on-the-go eating and drinking due to busier lifestyles, and the idea of smaller portions being healthier in almost all food and drink categories, may result in a strong preference for smaller formats over the forecast period. A telling example of this trend was the launch by Slavutych of its Taras Kvas brand in 500ml metal cans in two colours, bily (white) and chorny (black).
Coca-Cola Beverages Ukraine remained the clear leader in carbonates in 2018 thanks to offering a portfolio of globally recognised brands, such as Coca-Cola, Fanta and Sprite. The use of large marketing campaigns and a focus on brand positioning have both contributed to the company’s success in the country.
Ukrainian companies produce large amounts of various kinds of non-cola carbonates. Offering a good price/quality ratio, these used to be very popular among local consumers of all ages.
Carbonates is expected to become a more competitive category due to a predicted decline in volume sales. Lower-priced local manufacturers and private label players will look for differentiation strategies beyond price in order to sustain growth.
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This industry report originates from Passport, our Soft Drinks market research database.