Other Dairy in Ukraine

2021 DEVELOPMENTS

Plain fromage frais and quark sees healthy sales growth thanks to consumers’ health consciousness in 2021

Other dairy will continue to increase in both retail volume and current value terms in 2021, with plain fromage frais and quark seeing the highest retail volume growth during the year. As plain fromage frais and quark is thought to be healthier than flavoured products, sales will increase in line with consumers’ growing health consciousness.

New product development strong in chilled snacks in 2021

Chilled snacks is the fastest growing area in retail value terms in other dairy in 2021, with Lactalis Ukraine DP remaining the leader in the category and growing its value share. Demand for chilled snacks remains high as consumers are more aware of nutrition for children as well as themselves and are shifting to snacks that are perceived to be healthier such as chilled snacks.

Chilled dairy desserts recover from low base in 2021

Chilled dairy desserts saw a steep deceleration in retail value sales growth in 2020 due to these products being seen as non-essential and relatively unhealthy with consumers shifting purchases to flavoured yoghurt. However, chilled dairy desserts sees healthy retail value sales growth in 2021 as the category is recovering from a relatively small base and people are more used to living in a pandemic-world and no longer feel the need to stockpile essential products.

PROSPECTS AND OPPORTUNITIES

Consumers increasingly buy packaged fromage frais and quark leading to anticipated rise in sales growth during the forecast period

Other dairy is expected to see healthy constant retail value sales growth during the forecast period, albeit slower than the growth rate seen in 2021. Fromage frais and quark, especially plain fromage frais and quark, is anticipated to see the highest constant retail value growth rate during the forecast period, mainly due to consumers shifting to buying these products in packaged format from modern grocery retailers as unpackaged fromage frais and quark was mainly sold through open air markets, fairs and from households in rural areas, which is illegal during lockdowns.

Healthier condensed milk options likely to drive demand during the forecast period

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 and plain condensed milk is expected to see negative constant retail values sales growth in the forecast period.

More innovation in coffee whiteners likely during the forecast period

Coffee whiteners sees healthy sales growth in 2021 as consumers are at home and not able to frequent cafés often due to home seclusion in the face of the pandemic. Flavoured coffee whiteners especially sees an increase in demand as Ukrainians are used to buying coffee with various syrups or toppings in coffee shops and try to replicate their favourite tastes at home to make coffee consumption at home more interesting.