Dairy Packaging in Ukraine - New Market Research Report

Cheese

Due to rising price sensitivity among Ukrainian consumers caused by the worsening economic situation and higher cost of grocery products generally at the end of the review period, price became the key factor in purchasing decisions for cheese in 2014. Nevertheless, despite increased emphasis on price, still-more Ukrainian consumers were increasingly interested in the quality of cheese and thus in its composition and origin. As a result of this, demand for Ukrainian products (which are considered to be of good quality in general) grew slowly towards the end of the review period.

Competitive Landscape

Shostkynsky Miskmolkombinat continued to be the leading player within cheese in 2014, recording a 7% value share. The company offers standard-quality cheese at affordable prices, which continued to be in high demand by Ukrainian consumers. Thanks to a wide product range, the company covers all cheese types in the mid-priced band. The company also invests in frequent point-of-sale promotions, such as new product tasting, special package offers and discounts.

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Industry Prospects

There are modest prospects for cheese in Ukraine over the forecast period. The category’s development is expected to be contributed to by consumers’ moving towards healthier diets and their focus on natural products and those rich in calcium. Numerous new products are expected to revive the category. Producers are predicted to focus on emphasising the naturalness of food and communicate the lack of preservatives or colourings in their products. Cheese included in the health and wellness categories, such as reduced-fat cheese, is predicted to be less important to category development over the forecast period. Taste is expected to remain a significant factor and most Ukrainian consumers are expected to remain supporters of full-fat products, which are considered tastier than reduced-fat cheese.

Drinking Milk Products

Sales of fresh milk remained in 2014 under the impact of consumption from personal resources and purchases of large volumes directly from production farms or from open markets. The high sales of "loose" milk are the result of its perception as fresh, natural and healthier compared with packaged milk; however, packaged drinking milk products benefit mainly from their perception as healthy products. In addition, the expansion of large retailers, which have a great deal of shelf space, has also encouraged a change in purchasing habits from unpackaged to packaged drinking milk products. The branding activity carried out by producers also contributed to healthy growth, as consumers are sensitive to communication campaigns in favour of branded products.

Competitive Landscape

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