Analysis of the Ukrainian market for sweets and sweets from the marketing and branding agency Fine Agency Development Company: AI, Blockchain, IoT, Kyiv, Lviv, Odessa, Dnipro, Vinnitsa, Ukraine

Analysis of the Ukrainian market for sweets and sweets from the marketing and branding agency Fine Agency Development Company: AI, Blockchain, IoT, Kyiv, Lviv, Odessa, Dnipro, Vinnitsa, Ukraine

 

The candy basket includes many chocolate and non-chocolate categories. These are dragees, chocolate bars, chocolate figurines, pralines, ready-to-eat cakes, sweets and lollipops, waffles, cookies, muesli bars, halva, sesame seeds, as well as chewing gum.

In terms of sales, biscuits and chocolate bars rank first, followed by sweets and lollipops. Pralines are definitely more seasonal products associated with occasions such as holidays or name days, moreover, consumers buy fewer chocolates during the summer months. In value terms, the category of sweets and lollipops prevailed over pralines, since this type of sweets is characterized by more stable sales throughout the year.

 

Currently, the confectionery market is one of the most dynamically developing sectors of the food industry in Ukraine (Rivne, Chernivtsi, Uzhgorod, Lutsk, Ternopil, Khmelnitsky, Zhitomir and other cities). There are several hundred manufacturers in the confectionery industry. The share of foreign food concerns in the confectionery sector of Ukraine is 75–80%. The marketing and branding agency Fine refers to the main "sweet players" in the confectionery market: Roshen, Conti, AVK, Nestle Ukraine, Biscuit-Chocolate, Poltavkonditer. Ukrainian manufacturers of sweets account for 20-25% of confectionery production. The largest domestic producers of sweets include companies such as Roshen, Konti, AVK.

 

Possible threats to the confectionery industry in Ukraine according to the Fine Marketing and Branding Agency:

 

Unstable price situation on the raw material market

 

Analysts of the confectionery industry and manufacturers of sweets emphasize that the source of the 6% rise in the value of the confectionery market in 2012 is the rise in product prices in retail sales as a result of higher prices for raw materials. Prices for the main raw materials are systematically rising: flour, fats, milk powder, sugar or cocoa. In 2002–2011, sugar increased by more than 3.5 times. Small and medium-sized enterprises do not raise prices for their products, but they incur higher selling costs in retailers or wholesalers and keep production costs constant, which leads to low profitability for confectionery manufacturers.

 

Currency fluctuations

 

Fluctuations in exchange rates primarily affect the prices and quotes of raw materials on the agri-food markets. Rising commodity prices result in high food export prices that cannot compete with cheaper products from other European producers.

 

Legal and customs difficulties in export

 

Exporting food requires compliance with certain customs regulations of the country we export to. All legal and customs responsibility arising from the provision of information on the value of the exported product, tariff classification and the corresponding tax rate lies with the importer. It is extremely important to find out how customs classifies the exported goods. Very similar products are often subject to very different taxes. Minor legal and customs violations delay the release of the product to the target market and become customs offenses punishable by fines and imprisonment.

 

Administrative barriers

 

Administrative barriers are tools to protect the domestic market, but first of all they are the main factors limiting the development of exports. An example is the corruption-generating structures of power and governance in the FSU countries that affect the receipt of certain food safety certifications and business permits. The main obstacle to trade with Arab countries and Turkey is cultural and moral differences, which create additional difficulties, for example, the ban on the import of pork, venison and alcoholic products.

 

According to food manufacturers, the existing obstacles to the development of the confectionery industry restrict exports and may lead to the loss of even those export markets in which Ukrainian companies no longer felt threatened.

The confectionery market in Ukraine is very innovative. The market for chocolates, biscuits, sweets and snacks has seen the development of healthy eating patterns, as evidenced by an increase in the demand for healthy foods. Consumers are looking for healthy foods with added vitamins, minerals, fiber, and foods that are less nutritious (lower in sugar). 

Development Company: AI, Blockchain, IoT, Kyiv, Lviv, Odessa, Dnipro, Vinnitsa, Ukraine