Other Hot Drinks in Ukraine

2021 DEVELOPMENTS

Moderate, sustainable growth continues to be seen in other hot drinks

2021 saw a continuation of the moderate positive volume sales growth that was registered in other hot drinks throughout the review period. The main factor underpinning volume sales of other hot drinks is rising at-home consumption, which in turn is the result of consumers spending more time at home due to the impact of the COVID-19 pandemic.

Innovation emerges as a key strategy for boosting demand for other hot drinks

With demand for other hot drinks remaining buoyant during 2021 despite the impact of the COVID-19 pandemic, the category’s leading players were generally keen to promote their products and brands and tap into emerging demand trends. Among the players most prominent in this respect during the year was Galca Ltd, the clear leader in other plant-based hot drinks and one of the most dynamic companies present in the category.

The health and wellness trend comes to flavoured powder drinks

One of the most important consumer trends to have emerged in Ukraine from the COVID-19 pandemic is the far greater attention that consumers are now paying to the health and wellness aspects of the beverages that they drink. This applies especially to products that are intended to be consumed by children and with much of the consumption of chocolate-based flavoured powder drinks accounted for by families and households with children, it was perhaps inevitable that products with a health and wellness positioning would appear in the category towards the end of the review period.

PROSPECTS AND OPPORTUNITIES

Flavour innovation expected to emerge in a more competitive category

Other hot drinks is expected to become a more competitive category of hot drinks over the forecast period, with category players set to respond by launching new products with the potential to attract the attention of huge numbers of consumers. The main focus of new product development in chocolate-based flavoured powder drinks is set to be flavour innovation, with key category players set to tap into the rising sophistication of local consumers by introducing products that offer elaborate and indulgent tastes.

Mounting concern over sugar content set to influence demand for other hot drinks

With the health and wellness trend expected to be one of the most influential consumer megatrends in Ukraine during the forecast period, it is very likely that the spotlight will fall on the high sugar content of chocolate-based flavoured powder drinks. An important factor to take into consideration here is that there is a particularly intense focus on the sugar content of chocolate-based flavoured powder drinks as these products are most commonly consumed by children.

Other plant-based hot drinks to benefit from inherently healthy positioning

One category that is expected to benefit substantially from the rise of the health and wellness trend over the forecast period is other plant-based hot drinks. These products are widely regarded as among the healthiest of all hot drinks and this is very likely to stand the category in good stead as consumers increasingly favour hot drinks that are free from sugar and caffeine.