Executive Summary

Sep 2019
Prospects
Unpackaged hard cheese sees strong growth, but unpackaged dominates

Packaged hard cheese continued to see the strongest growth within cheese in current value terms in 2019. It is becoming increasing popular as consumers consider that the packaging guarantees that that the product does not contain any bacteria.

Rising production of local goat cheese leads to sales growth

Farm produced, craft goat cheese, so-called syrovarni, has become increasingly popular. Producers are mainly goat farms and small manufacturers, and their products are often sold at markets which attract tourists.

Health-orientated and lactose-intolerant consumers demand lactose-free cheese

Lactose-free cheese is expected to become increasingly popular in Ukraine, due to the growing consumer demand for lactose-free products from international and Ukrainian companies. Despite the high price of this type of cheese, more and more people are purchasing it, both lactose-intolerant and health-orientated consumers.

Competitive Landscape
Terra Food Group’s umbrella brand Ferma benefits from high quality reputation

Terra Food Group continued to lead the fragmented cheese category in 2019, with a static value share. Terra Food Group has obtained leading positions in almost all dairy categories.

Bright and interesting packaging helps Kovel-Moloko grow its share

Kovel-Moloko (Komo brand) remained the second company in cheese in 2019, and saw a strong value increase. It has a presence in the majority of categories and constantly launches new flavours.

Product launches expected to ensure growth

Recent new product developments in hard cheese included premium products under the Komo brand (Kovel-Moloko), Old Dutch, which is matured for two months, and Golder, which is matured for 12 months. These were unique for the mass market, as such offerings were previously only available in specialist shops.

Prospects
Changes to milk standards expected to have little effect on volume sales

Changes to the state standard (GOST), which were due in January 2018, have been postponed until 2020, and even possibly until 2023. There will be three quality classes in milk (extra, high and first grades) instead of the current five classes.

New products and positionings to stimulate interest

Milk manufacturers are expanding their ranges with new products and new positionings. For example, goat milk is becoming increasingly popular, due to the rising number of lactose-intolerant consumers in Ukraine and falling unit prices.

Making barista-style coffee at home boosts sales of full fat shelf stable milk

Horeca was recently a driver of growth in shelf stable milk in retail. In a continuation of the trend from 2018, the growing number of coffee shops and their rising popularity led to consumer interest in preparing barista-style coffee at home instead of consuming instant.

Competitive Landscape
Lustdorf maintains lead with launches of wellness products

Lustdorf continued to lead drinking milk products in value terms in 2019. The company produces drinking milk products under the core brands Selyanske, Burenka and Na Zdorovya, covering all price tiers with these brands.

Flavoured milk drinks grows thanks to widening flavours, with cocoa having strong appeal

Cocoa is a traditional milk beverage in Ukraine, which is produced mostly at home, or in kindergartens, schools and hospitals. However, in the middle of the review period Molochny Alliance launched Kakao Na Molotsi (cocoa-flavoured dairy milk drink), which saw great success, as it is ready prepared and is tasty either cold or hot.

Smaller pack sizes a strategy to maintain value sales

After cancellation of the state regulation on unit prices for social products (including milk), manufacturers of drinking milk products increased unit prices only moderately, as many consumers could not afford to purchase expensive products. In a strategy to maintain their value sales, most producers reduced the size of their packaging from 1-litre to 950ml, 900ml, 890ml or 870ml, to keep prices stable.

Prospects
Sour milk products benefits from traditional appeal, in addition to health trend

Yoghurt and sour milk products continued to see retail volume and current value growth in Ukraine in 2019. Sour milk products remained the biggest category, due to the popularity of traditional products such as kefir, ryazhanka and zakvaska, and their benefits for digestive health.

New launches in all categories focus on health and wellness benefits

The health and wellness trend was strong in yoghurt and sour milk products in 2019, due to the many recent new product developments. Due to its continued rising popularity, new products were launched in plain yoghurt, without sugar and with lower fat content, and marketed as “natural”.

Stronger advertising stimulates sales and consumer loyalty

In 2019, much more advertising activity was seen from several brands. For instance, Halychyna, Yagotynsky Maslozavod, Danone, Wimm-Bill-Dann, Terra Food Group, Molokiya and Lustdorf carried out television advertising, and for some products SMM/digital support was also seen.

Competitive Landscape
Danone launches new products, attempting to halt decline

Danone continued to lead yoghurt and sour milk products in value terms in 2019, although it saw a further slight share decline due to the increasing competition. Meanwhile, Lactalis Ukraine in second place saw a slight share increase.

Yagotynsky Maslozavod offers various niche products to maintain its growth

Yagotynsky Maslozavod was the fourth player in yoghurt and sour milk products in 2019. It has a separate factory for baby food and its dairy brand for children, Hopsy.

Strong innovation as players seek to capitalise on shifting health trends

At the end of the review period, Halychyna rebranded and carried out new product development. It launched white packaging for its products, and gave television and YouTube support to the rebranding, focusing on the younger generations.

Prospects
Plain fromage frais and quark grows with the rise of cheaper family packs

Other dairy continued to increase in both retail volume and current value terms in 2019. Plain fromage frais and quark saw the strongest current value growth, and this is expected to continue in the forecast period.

High sugar content and old-fashioned image lead to decline in condensed milk

Plain condensed milk is considered an old-fashioned product, which is not in favour amongst people with modern lifestyles. Its unhealthy image due to the high sugar content is also a factor negatively affecting sales.

Hectic lifestyles boost chilled snacks, with room for growth in the premium segment

As hectic lifestyles leave limited room for cooking or going out, the snacking culture is expanding towards all price platforms, including the premium segment, in which chilled snacks has room for growth. Chilled snacks are mostly made from fromage frais, and are the choice of parents who want to give their children tasty and healthy snacks instead of biscuits or chocolate.

Competitive Landscape
Widening range leads to the rising share of “others”

Wimm-Bill-Dann Ukraine continued to lead other dairy in 2019, although it saw a slight decline in its value share due to the rising competition. The company has a presence in chilled snacks, cream, and fromage frais and quark with the brands Slovyanochka, Chudo and Vesely Molochnik.

Several new product developments from Danone’s Danissimo

Danone offered various new product developments in chilled dairy desserts at the end of the review period. For instance, it launched the brand line Danissimo - The Cake, with flavours of popular desserts such as tiramisu, cherry brownie and medovik (Slavic layer cake).

New products target niches and new packaging attracts consumers

Danone was not the only player involved in new product development, however. The Lactonia Fit+ line from Lactalis Ukraine is a flavoured fromage frais and quark with high protein and low fat (0.

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Dairy in Ukraine

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Overview

Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Ukraine with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Dairy industry in Ukraine, our research will save you time and money while empowering you to make informed, profitable decisions.

The Dairy in Ukraine market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Dairy in Ukraine?
  • What are the major brands in Ukraine?
  • How has the economic downturn impacted sales performance given its staple food status?
  • Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
  • How are volatile farmgate prices for milk impacting retail prices and sales performance?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Dairy in Ukraine - Category analysis

Butter and Spreads

HEADLINES

PROSPECTS

Higher butter prices encourage continued move from butter to margarine
Growth expected for butter in forecast period likely due to product launches
Lower unit price leads to popularity of large pack sizes

COMPETITIVE LANDSCAPE

Schedro maintains lead in margarine and spreads, while more players enter butter
Division between butter and dairy spreads becomes more visible
Expansion by local player, but departure for international player Danone

CATEGORY DATA

Table 1 Sales of Butter and Spreads by Category: Volume 2014-2019
Table 2 Sales of Butter and Spreads by Category: Value 2014-2019
Table 3 Sales of Butter and Spreads by Category: % Volume Growth 2014-2019
Table 4 Sales of Butter and Spreads by Category: % Value Growth 2014-2019
Table 5 NBO Company Shares of Butter and Spreads: % Value 2015-2019
Table 6 LBN Brand Shares of Butter and Spreads: % Value 2016-2019
Table 7 Distribution of Butter and Spreads by Format: % Value 2014-2019
Table 8 Forecast Sales of Butter and Spreads by Category: Volume 2019-2024
Table 9 Forecast Sales of Butter and Spreads by Category: Value 2019-2024
Table 10 Forecast Sales of Butter and Spreads by Category: % Volume Growth 2019-2024
Table 11 Forecast Sales of Butter and Spreads by Category: % Value Growth 2019-2024

Cheese

HEADLINES

PROSPECTS

Unpackaged hard cheese sees strong growth, but unpackaged dominates
Rising production of local goat cheese leads to sales growth
Health-orientated and lactose-intolerant consumers demand lactose-free cheese

COMPETITIVE LANDSCAPE

Terra Food Group’s umbrella brand Ferma benefits from high quality reputation
Bright and interesting packaging helps Kovel-Moloko grow its share
Product launches expected to ensure growth

CATEGORY DATA

Table 12 Sales of Cheese by Category: Volume 2014-2019
Table 13 Sales of Cheese by Category: Value 2014-2019
Table 14 Sales of Cheese by Category: % Volume Growth 2014-2019
Table 15 Sales of Cheese by Category: % Value Growth 2014-2019
Table 16 Sales of Spreadable Processed Cheese by Type: % Value 2014-2019
Table 17 Sales of Unprocessed Cheese by Type: % Value 2014-2019
Table 18 NBO Company Shares of Cheese: % Value 2015-2019
Table 19 LBN Brand Shares of Cheese: % Value 2016-2019
Table 20 Distribution of Cheese by Format: % Value 2014-2019
Table 21 Forecast Sales of Cheese by Category: Volume 2019-2024
Table 22 Forecast Sales of Cheese by Category: Value 2019-2024
Table 23 Forecast Sales of Cheese by Category: % Volume Growth 2019-2024
Table 24 Forecast Sales of Cheese by Category: % Value Growth 2019-2024

Drinking Milk Products

HEADLINES

PROSPECTS

Changes to milk standards expected to have little effect on volume sales
New products and positionings to stimulate interest
Making barista-style coffee at home boosts sales of full fat shelf stable milk

COMPETITIVE LANDSCAPE

Lustdorf maintains lead with launches of wellness products
Flavoured milk drinks grows thanks to widening flavours, with cocoa having strong appeal
Smaller pack sizes a strategy to maintain value sales

CATEGORY DATA

Table 25 Sales of Drinking Milk Products by Category: Volume 2014-2019
Table 26 Sales of Drinking Milk Products by Category: Value 2014-2019
Table 27 Sales of Drinking Milk Products by Category: % Volume Growth 2014-2019
Table 28 Sales of Drinking Milk Products by Category: % Value Growth 2014-2019
Table 29 NBO Company Shares of Drinking Milk Products: % Value 2015-2019
Table 30 LBN Brand Shares of Drinking Milk Products: % Value 2016-2019
Table 31 Distribution of Drinking Milk Products by Format: % Value 2014-2019
Table 32 Forecast Sales of Drinking Milk Products Products by Category: Volume 2019-2024
Table 33 Forecast Sales of Drinking Milk Products Products by Category: Value 2019-2024
Table 34 Forecast Sales of Drinking Milk Products Products by Category: % Volume Growth 2019-2024
Table 35 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth 2019-2024

Other Dairy

HEADLINES

PROSPECTS

Plain fromage frais and quark grows with the rise of cheaper family packs
High sugar content and old-fashioned image lead to decline in condensed milk
Hectic lifestyles boost chilled snacks, with room for growth in the premium segment

COMPETITIVE LANDSCAPE

Widening range leads to the rising share of “others”
Several new product developments from Danone’s Danissimo
New products target niches and new packaging attracts consumers

CATEGORY DATA

Table 36 Sales of Other Dairy by Category: Volume 2014-2019
Table 37 Sales of Other Dairy by Category: Value 2014-2019
Table 38 Sales of Other Dairy by Category: % Volume Growth 2014-2019
Table 39 Sales of Other Dairy by Category: % Value Growth 2014-2019
Table 40 Sales of Cream by Type: % Value 2014-2019
Table 41 NBO Company Shares of Other Dairy: % Value 2015-2019
Table 42 LBN Brand Shares of Other Dairy: % Value 2016-2019
Table 43 Distribution of Other Dairy by Format: % Value 2014-2019
Table 44 Forecast Sales of Other Dairy by Category: Volume 2019-2024
Table 45 Forecast Sales of Other Dairy by Category: Value 2019-2024
Table 46 Forecast Sales of Other Dairy by Category: % Volume Growth 2019-2024
Table 47 Forecast Sales of Other Dairy by Category: % Value Growth 2019-2024

Yoghurt and Sour Milk Products

HEADLINES

PROSPECTS

Sour milk products benefits from traditional appeal, in addition to health trend
New launches in all categories focus on health and wellness benefits
Stronger advertising stimulates sales and consumer loyalty

COMPETITIVE LANDSCAPE

Danone launches new products, attempting to halt decline
Yagotynsky Maslozavod offers various niche products to maintain its growth
Strong innovation as players seek to capitalise on shifting health trends

CATEGORY DATA

Table 48 Sales of Yoghurt and Sour Milk Products by Category: Volume 2014-2019
Table 49 Sales of Yoghurt and Sour Milk Products by Category: Value 2014-2019
Table 50 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2014-2019
Table 51 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2014-2019
Table 52 Sales of Flavoured Yoghurt by Flavour: Rankings 2014-2019
Table 53 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2015-2019
Table 54 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2016-2019
Table 55 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2014-2019
Table 56 Forecast Sales of Yoghurt and Sour Milk Products by Category: Volume 2019-2024
Table 57 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value 2019-2024
Table 58 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2019-2024
Table 59 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2019-2024

Packaged Food in Ukraine - Industry Overview

EXECUTIVE SUMMARY

Packaged food in Ukraine continues its recovery after the volume downturn in 2014-2017
Health and wellness, convenience, small pack sizes among the key trends
Domestic players and locally manufactured products account for more than half of sales
Modern retail is the most popular retail channel
Packaged food set to see positive growth in volume and value sales

FOODSERVICE

Sales to Foodservice
Healthy products among the fastest-growing categories in foodservice
Foodservice supply is not developed
Powder milk struggling in both retail and foodservice
Consumer Foodservice
Number of foodservice outlets increases in 2018
Increasing popularity of street food format in Ukraine
Retail unpackaged ready meals compete with foodservice

CATEGORY DATA

Table 60 Foodservice Sales of Packaged Food by Category: Volume 2014-2019
Table 61 Foodservice Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 62 Forecast Foodservice Sales of Packaged Food by Category: Volume 2019-2024
Table 63 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2019-2024

MARKET DATA

Table 64 Sales of Packaged Food by Category: Volume 2014-2019
Table 65 Sales of Packaged Food by Category: Value 2014-2019
Table 66 Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 67 Sales of Packaged Food by Category: % Value Growth 2014-2019
Table 68 GBO Company Shares of Packaged Food: % Value 2015-2019
Table 69 NBO Company Shares of Packaged Food: % Value 2015-2019
Table 70 LBN Brand Shares of Packaged Food: % Value 2016-2019
Table 71 Penetration of Private Label by Category: % Value 2014-2019
Table 72 Distribution of Packaged Food by Format: % Value 2014-2019
Table 73 Distribution of Packaged Food by Format and Category: % Value 2019
Table 74 Forecast Sales of Packaged Food by Category: Volume 2019-2024
Table 75 Forecast Sales of Packaged Food by Category: Value 2019-2024
Table 76 Forecast Sales of Packaged Food by Category: % Volume Growth 2019-2024
Table 77 Forecast Sales of Packaged Food by Category: % Value Growth 2019-2024

SOURCES

Summary 1 Research Sources