A detailed market research report on the Ukraine beer industry. Researched and published by Canadean.
Introduction and Landscape
Why was the report written?
This report comprises high level market research data on the Ukraine beer industry, published by Canadean. The report covers total market (on- and off-premise) and includes valuable insight and analysis on beer market trends, brands, brewers, packaging, distribution channels, market valuation and pricing. What is the current market landscape and what is changing?
Thanks to widespread commercial agreements that the country has signed, consumer goods find it easy to enter the Chilean market due to the 'light-touch' commercial regulations put in place by the Chilean government. Beer producers continue to experience serious difficulties in Ukraine. The cost of raw materials increased significantly in 2011 alongside the increased unpredictability of legislation and taxation by Ukrainian authorities.What are the key drivers behind recent market changes?
2011 was a difficult year for the beverage industry with declines being observed in both the soft drinks and beer markets. Many taxes were increased, which caused difficulty to business, especially small and medium enterprises. Despite all the reforms announced and already performed in 2010-2011, the environment for business in the Ukraine is still somewhat unfavourable. Investors, both domestic and international, are rather skeptical about the reform results and investment activity is continuing to decline.What makes this report unique and essential to read?
The Ukraine Beer Market Insight report is designed for clients needing a quality in-depth understanding of the dynamics and structure of the Beer market. The report provides a much more granular and detailed data set than our competitors. All data has been researched, brand upwards, by an experienced 'on-the-ground' industry analyst who conducts face-to-face interviews with key producers, leading companies in allied industries, distributors and retailers.Key Features and Benefits
Key Market Issues
- This report provides readers with an excellent way of gaining a thorough understanding of the dynamics and structure of the Ukraine Beer industry. Data includes volumes from 2007 to 2011 plus forecasts for 2012, enabling historical and current trend analysis.
- This report provides readers with in-depth market segmentation: mainstream, premium, super premium, discount, alcoholic strength, local segmentation, beer type.
- This report provides data and analysis of the performance of both domestic and imported brands and reports on new product activity in 2011.
- This report provides an analysis of industry structure, reports on company volumes and contains brewer profiles for ten major brewers.
- This report provides distribution channel data (on- vs off-premise) and discusses the latest trends in the key sub-channels. Packaging data includes consumption volumes by pack material, type, size, refillable vs non-refillable, multi-serve vs single serve. Market valuation data and pricing data, including beer consumption by price segment/distribution channel and selected consumer beer prices are also included.
- The cost of raw materials increased significantly in 2011 alongside the increased unpredictability of legislation and taxation by Ukrainian authorities.
- During the year all beer producers saw decreased output and export volumes fell; however at the same time import volumes demonstrated an impressive double-digit growth.
- The Ukrainian beer industry remains one of the most consolidated in the country with over 98% of the market being controlled by four operators. The only chance to survive for smaller producers is to expand into niche markets, where competition is not that high.
- In spite of the market consolidation, per capita consumption of beer in Ukraine is still much lower than in many Western countries meaning that the market still has good possibilities for growth.
- The industry faced increasing operational costs during 2011 due to rising costs of malt, packaging, transportation and energy supply
- As in previous years the top four operators continue to control the market, with SUN InBev Ukraine, Slavutich, Carlsberg Group (Carlsberg Ukraine), Obolon and Miller Brands Ukraine together accounting for over 98% of beer consumed.
- New product development was very active during the year with most operators trying to support sales with the launch of new products alongside redesigning traditional brands.
- Operators expect that the production of beer in Ukraine will increase by around 2-3% in 2012.
- However, prices are also expected to rise by a further 13% in 2012 and so the growth in consumption is likely to be more subdued, at less than 2% in 2012.
- It is expected that consumption of beer in larger bottle sizes (100cl and 150cl, in terms of aggregated volumes) will continue to increase.