Food and Drink Internet Retailing in Ukraine

PROSPECTS

Delivery costs discourage development

In 2018, online grocery shopping was not popular in Ukraine, despite its considerable potential. Although many Ukrainian consumers were eager to utilise the convenience of buying food and drinks online (especially young professionals residing in the largest urban areas), the development of online food and drink retailing was largely hindered by the cost of delivery.

Influencing consumer behaviour remains a challenge

In 2018, Ukrainians were still reluctant to shop for groceries online because of trust issues. Many consumers were afraid that they would get products of lower quality if ordering online.

Geographic coverage remains very limited

In 2018, food and drink internet retailers in Ukraine only covered the largest metropolitan areas in Ukraine, with Kiev taking an overwhelming lead. The majority of the Ukrainian population are simply excluded from online grocery retailing coverage due to where they live.

COMPETITIVE LANDSCAPE

Zakaz.ua leads

Zakaz.ua maintained its strong lead in food and drink internet retailing in 2018.

New players may emerge in the future

Despite its small current size, food and drink internet retailing in Ukraine could experience dramatic growth in the future. Significant disruption in the market could be created by a large grocery retailer launching its own full-scale grocery retailing platform.

Economy brands show no interest

Grocery brands at the lower-end of the price spectrum continued to ignore online sales. Prominent grocery retailers such as ATB, Velmart, Varus and the majority of regional players have stated no intention to invest in the development of internet retailing of groceries.

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