People mastered brewing, even before they started baking bread. Beer is an ancient drink that has not lost its popularity for about 8,000 years.
The beer market in Ukraine saw a slight decline in beer consumption and production in 2014-2015.
What was the reason for this? How did demand and production levels change?
This and much more will be discussed in the beer market research conducted by the specialists of the KOLORO branding agency.
Beer demand and consumption in Ukraine
Most of the population of Ukraine, 60.8% to be exact, drink beer, of which 76% are men and 24% are women.
According to the age category of the population, the following trend is observed: 71% of all beer consumed in Ukraine is consumed by consumers aged 21-29 years old, the most modest segment of consumers is the population aged 50-59 years old – 6.5%.
Beer consumption in Ukraine, according to age category, %
The main beer consumer in Ukraine remains the segment of the population with high and upper-middle income, residents of small and large cities.
According to the volume (capacity) of beer products, consumption was distributed as follows: the most popular volume is 0.5 liters – 50.4%, beer with a capacity of 1-2 liters accounts for 30.1% of consumers, 0.33 – 16.7% liters and volumes of more than 2 liters – 2.8%.
Volume of beer consumption in Ukraine, %
Frequency of beer consumption by Ukrainian consumers – during 1 week, %
Where do Ukrainians drink beer most often? The majority of consumers prefer to drink beer at home (53.2%) or in public places – cafes, restaurants, bistros, etc. 18.3% of consumers prefer to drink beer at home. – 18,3%. In the hot period of time (spring and summer season) the level of beer consumption increases – on the street, on average up to 10%, but in other periods consumption is 11.4%.
Beer consumption locations by percentage:
Beer market structure and main producers
The Ukrainian beer market has more than 400 varieties and types of beer, 90% of which are produced by three major multi-brands AB InBev, Carlsberg Ukraine and Obolon. The Efes and SABMiller Alliance, PPB Alliance and Oasis CIS also have a significant market share.
In the structure of domestic production, 49% of products are produced in PET packaging, 35% in glass bottles, 12% in kegs and 4% in metal cans.
Structure of the Ukrainian beer market, depending on type of packaging, %
Main producers in the beer market of Ukraine:
- AB InBev (TM Chernigivske, Bud, Yantar, Rogan, Stella Artois, Staropramen, Beck’s, etc.);
- Carlsberg Ukraine (TM “Lvivske”, “Slavutich”, “Arsenal”, “Tuborg”, “Holsten”, “Carlsberg”, etc.);
- “Obolon ” (TM “Obolon”, “Hike”, “Carling”, “Zibert”, “Zlata Praha”, “Zhigulevskoye”, “Okhtyrskoye”, etc.);
- Alliance of Efes and SABMiller (TM Sarmat and Velkopopovický Kozel);
- PPB Alliance and Oasis CIS (TM “Persha Privatna Browarnya”, “Galitska Korona”, “Zhiguli Barnoe”, “Zakarpatskoe”, Stare Misto, etc.).
The market shares of these manufacturers in 2014 were distributed as follows:
Consumer preferences by beer brands, % – Beer Rating in Ukraine
The top three brands were the following: “Carlsberg” (19.4%), “Baltika” (13.2%) and “Lvivske” (8.3%). Next are such brands as “Tuborg” (6.7%) and “Velkopopovický Kozel” (4.9%). Zhigulevskoye (3.1%), Chernigivske (2.6%) and Obolon (2.6%) round out the chain of leaders.
\t\t\t\t\t\t\t\t\t\t\t\t\t
 |  |  |
General beer market trends in Ukraine
In 2014, beer production in Ukraine significantly reduced its volumes, by 9.3% (according to the organization “Ukrpivo”). Production capacities are only half utilized. In 2015, according to expert forecasts, we should expect a further reduction in sales and production volumes, on average by 4-6%. First of all, this is due to a decrease in the purchasing power of the population, as well as macroeconomic indicators of the country and the conflict in the east.
In general, the Ukrainian beer market is quite promising, today there are about 20 licensed brands of beer, more than 400 varieties.
Features of the Ukrainian beer market:
In recent years (2012-2014), there has been a decline in the market share of large beer producers and a gradual increase in the production volumes of carfts.- Beer consumption by the country’s population is decreasing, due to deteriorating prosperity.
- There is a decrease in consumption of beer brands in the mid-price segment and an increase in consumption in the economy and premium segments.
- Major beer producers are refocusing on premium products.
- The level of competition with stronger alcohol brands remains as high as before.
- Only the non-alcoholic beer market remains stable; over the last few years the volumes of production and consumption here have not changed and amount to about 5 mln. dal. annually.
Ukrainian beer is exported to 42 foreign countries. According to the results of 2014. Ukraine reduced beer exports by 45.5%, in addition, imports also decreased – by 10.1% (according to the organization “Ukrpivo”). Ukrainian beer is exported mainly to Russia and CIS countries. The main importers of beer to Ukraine are:Russia, Belgium, Germany and the Czech Republic.
Summary
The Ukrainian beer market is very promising, however, recently production volumes and sales have been declining significantly. First of all, this is due to the deterioration of the economic situation in the country and the general welfare of the population, which is associated with a decrease in purchasing power.
More than 60% of the Ukrainian population consumes beer, the majority of consumers are male (76%). The most active beer consumers are the population aged 21-29 – 71% of the total beer consumption in the country. The most popular volumes of beer purchased by consumers remain 0.5 liters, as well as 1-2 liters.
90% of beer on the Ukrainian market is produced by three multi-brand companies – AB InBev, Carlsberg Ukraine and Obolon. A significant share of production is also supplied to the market by two alliances: Alliance Efes and SABMiller, and Alliance PPB and Oasis CIS. Among the brands with the highest demand are: “Carlsberg” (19.4%), “Baltika” (13.2%) and “Lvivske” (8.3%). Next are such brands as “Tuborg” (6.7%) and “Velkopopovický Kozel” (4.9%). Zhigulevskoye (3.1%), Chernigivske (2.6%) and Obolon (2.6%) round out the chain of leaders.
In 2015, experts forecast a further decline in beer production and sales, on average by 4-6%.
Previous marketing research of the beer market can be found in our blog: “Marketing research of the beer market in Ukraine“, as well as “Label and bottle design of youth beer brands“.
