The name of this group of products comes from the English snack – a light snack. Snacks are extremely popular all over the world. Ukraine has not become an exception.
Snacks can be:
- sweet;
- unsweetened.
Some of the most common snacks include:
- chips;
- breadcrumbs;
- seeds;
- peanuts;
- popcorn;
- candy bars;
- dried fruit.
Ukraine’s snacks market, like other food markets, is highly dependent on the international situation. Analysis of the snacks market shows that it has experienced significant changes in recent years.
Snacks market in Ukraine: production
Snacks production in Ukraine is experiencing a decline. In 2015, the snacks market decreased by 30%. In 2016, the decline in production continued. This is largely due to the fall in the hryvnia exchange rate. Many snacks are not produced in Ukraine. They are only packaged and packaged here (for example, peanuts and pistachios). The jump in the dollar exchange rate increased the cost of these products, and Ukrainian producers reduced their purchases.
The crisis has affected the purchasing power of the population. People cannot afford to buy premium class snacks. Therefore, manufacturers are reducing their production. In 2013, premium snacks accounted for 14% of production. In 2015-2016, this figure decreased to 5%. Instead of premium products, Ukrainian companies began to produce more snacks of the middle price segment.
Also, more and more snacks are being produced by retail chains under the privat label. This makes snacks easier to promote and less expensive, thanks to savings on advertising.
Ukrainian snacks market: exports and imports
The structure of the snacks market in Ukraine is heterogeneous, which affects export and import indicators. Some types of snacks Ukraine only imports. For example, snacks made of exotic fruits and berries. Such a popular snack base as peanuts belongs to this category.
Peanuts are most often imported from Argentina, Brazil, India and China. In January-November 2016, the largest supplies of peanuts were from:
- Argentina, 43.74%;
- India – 34.50%;
- Brazil, 13.71%.
Other countries account for 8.05% of imported peanuts.
Seeds are a popular snack that Ukraine actively exports to other countries. Until 2015, large supplies of seeds were made to Russia. In 2016, the main export directions changed. In January-November 2016, the most sunflower seeds were exported to:
- Turkey – 21.91%;
- France, 20.98%;
- Portugal, 10.78%.
Another 46.33% was exported to other countries.
Ukraine imports the most seeds from:
- Turkey – 34.42%;
- THE UNITED STATES IS AT 29.56%;
- France, 8.20%.
Other countries account for another 27.82% of seed imports.
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Market research of snack food consumers in Ukraine
US residents eat 10 kg of snacks per year. European residents eat 5-6 kg. In Ukraine the consumption of snacks is less developed. The average Ukrainian eats 1.5 kg of snacks per year. At the same time, about 25% of the Ukrainian population consume snacks on a daily basis.
Most people in Ukraine allocate 10-15 UAH per day for snacks. They are not ready to spend a larger amount. Snacks are not among the products of first necessity, so in crisis conditions people refuse to buy them.
Most often people consume snacks as a snack. They are convenient and easy to eat. Many people eat snacks on the go. Most snacks have a pleasant taste. People buy them as a treat.
Very often snacks fall into the category of impulse purchases. People are attracted by the brightly colored packaging of snacks. For many consumers, snacks are a way to treat themselves. A tasty snack helps distract from everyday problems and reduces stress. Snacks serve as a kind of reward. For example, for a job well done. In this respect, the attitude to snacks is similar to the attitude to chocolate.
Often snacks are used as an appetizer for alcoholic beverages. In our article you can read about the peculiarities of the Ukrainian beer market.
In previous years, consumers favored regional snack food manufacturers. However, in 2015-2016, there was an increase in demand for the products of nationwide producers. Large producers can afford to use new technical means, which improves product quality.
With the growing popularity of healthy lifestyles, consumers want even snacks to be beneficial. Therefore, manufacturers are focusing on health benefits when using flavor additives. For example, people know that seafood is healthy. Therefore, if they do not have special taste preferences, they will choose a seafood-flavored snack.
Having noticed this peculiarity of consumers, manufacturers began to emphasize the beneficial properties of their products. For example, positioning seeds as a source of vitamins, not just a snack. Manufacturers are starting to produce lines of healthy and wholesome snacks.
Healthy lifestyle-oriented consumers read the product composition carefully. They want snacks to be free of preservatives, flavor enhancers and harmful additives. About 60% of consumers are willing to pay an additional amount if it will guarantee the quality of the product. Snacks containing vitamins and micronutrients are popular. Thanks to this, the market for fruit bars has begun to develop – they are characterized by an increased amount of useful substances.
Snacks made from exotic products are gaining popularity. These can be whole cocoa beans, acai berries and goji berries. Most often these snacks belong to the premium class.
Unusual flavors and textures are popular among young people. They are the ones who react sensitively to advertising slogans promising more crunch or sweetness. Older consumers are wary of novelties. When choosing a new, unusual product, they are guided by the opinion of acquaintances or experts.
In addition to taste, when choosing snacks, consumers are guided by such indicators:
- ease of packaging;
- design;
- brand;
- price.
The largest snack food producers in Ukraine
S.Group Corporation
Manufacturer of snacks and household goods. The company has been operating in Ukraine since 1995.Under the S.Group brand, the company has existed since 2014.
The company owns such snack food brands:
- SEMKI (sunflower seeds);
- Snekkin (chips, croutons, croutons);
- Lavka (sunflower seeds);
- “Kozatska Slava” (peanuts);
- “My ribalka” (fish snacks);
- “Macho” (pistachios).
The company produces snacks for the privat label of such chains:
- METRO;
- Billa;
- Auchan;
- “Caravan.”
- “Tavria B”;
- “Velika Kishenya.”
“Mondelis Ukraine”
Until 2014, the company was called Kraft Foods Ukraine. It belongs to the Mondelēz International group of companies. The Mondelēz Ukraine company includes:
- Trostyanets Chocolate Factory “Ukraine”;
- Chips Lux LLC.
The company’s popular brands include:
- “Vedmedik ‘Barni’.”
- “Belvita. Dobryi Ranok;
- “Suite.”
- TUC;
- Picnic.
The company is among the leaders among Ukrainian producers of salty snacks.
Zahid Company
The company was founded in 2000. It produces snacks under the brands:
- “Kapitan” (dried fish);
- “Amigo” (breadcrumbs);
- “Zahid Premium (nuts);
- “Mitzvah Pot” (peanuts);
- “Zahid” (seeds);
- “Veselibaranzi” (popcorn).
Zahid cooperates with such establishments:
- TSA;
- Silpo;
- WOG;
- MegaMarket;
- Novus, etc.
PepsiCo Ukraine
PepsiCo is an American multinational company. It is engaged in production of various drinks and snacks. In the Ukrainian snacks market the company is represented by several brands.
1. “KhrusTeamDoPinny”. The brand was launched on the market of breadcrumbs in 2013. KhrusTeamDo Pinnogo breadcrumbs are made of rye and wheat flour.
There are 5 flavors of breadcrumbs on the market:
- shish kebab;
- hunting sausages;
- horseradish;
- smoked cheese;
- squid.
2. “KhrusTeam Baguette”. Dry breadcrumbs of this brand are made of natural grain ingredients. They are presented in 3 flavors:
- king crab;
- French mustard burger;
- tomatoes and herbs.
3. Lay’s . Lay’s brand has gained popularity in the Ukrainian market of chips thanks to constant experiments with flavor. Such brand chips are in demand:
- “Sour cream and greens.”
- “Bacon.”
- “Crab.”
- “Porcini mushrooms with sour cream,” etc.
4.Lay’s Strong. Chips of this brand are positioned by the company as a product specially created for use with beer. There are 3 types of such chips:
- “Wasabi Hell.”
- “Spicy chili.”
- “Incendiary Sausages.”
5. Lay’s MAX. Chips of this brand are produced with a greater thickness than standard chips. In Ukraine they are represented by 3 flavors:
- “Cheese and onions.”
- “Spicy paprika.”
- “Barbecue chicken wings.”
“Leader Snack.”
The company produces snacks under 4 brand names.
1. Homka TM.
- roasted, unsalted seeds;
- salted roasted seeds;
- roasted elite seeds;
- roasted elite salted seeds;
- salted roasted pumpkin seeds;
- peeled sunflower seeds;
- roasted peanuts.
2. TM “Potishki“.
- salted roasted seeds;
- roasted, unsalted seeds.
3. TM “Lakomka”.
4. TM “Kozaki“.
Snack food market: trends in package design
1. Convenience above all else. Many people consume snacks on the go. That’s why manufacturers try to develop a package design that will be convenient to use at home, at work, and on the street. Most often they are packages of small formats – so that the snack can be eaten at one time. The package should also be easy to open and close.
2. Ecoism. Most often used in package design to emphasize the natural origin of snacks. This includes images of plants and colors associated with nature: green, yellow, blue. With the help of design, manufacturers signal to customers the usefulness of their product and the absence of harmful additives in it.
3. Storytelling. Consumers want to have fun with design. Snacks packaging design, which does not just reveal the product’s property, but tells an interesting story, is popular. For example, the supermarket chain Safeway (USA) produces snacks in packs of original design. Each product is represented by an animated character who is engaged in a favorite activity.
4. More color. Bright, unusual, shouting colors instantly attract the attention of consumers. They are especially often used for snacks that are associated with entertainment: popcorn, chips.
5. Premiumization. This trend is especially common among natural snacks: nuts, fruits and berries. This design should emphasize the elite nature of the products.
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Snacks: market forecast
The crisis has hit the pockets of Ukrainian consumers, so they will try to cut costs on snacks. To attract consumers, producers have to reduce the price of their products. To do this, companies can reduce the size of packs. It is possible to save money on promotion of different lines of snacks by creating an umbrella brand – this allows to reduce marketing costs.
Some of the raw materials needed for snacks are imported from abroad (peanuts, berries). The growth of the dollar exchange rate has increased the cost of the final product. In the future, Ukrainian manufacturers will increase production of more affordable snacks.
The seed market will continue to expand. This is an inexpensive type of snack that almost every resident of Ukraine can afford.
Entering the Middle East and Central Asia markets may bring additional profit. Snack food production there has only just begun to develop.
Ukrainian snacks market: summary
1. In 2015-2016, the snacks market in Ukraine has significantly decreased. This was caused by the unstable economic situation.
2. In 2016, consumers began to favor large national snack food manufacturers.
3. Consumers save money on optional purchases, so manufacturers are looking for new ways to attract their attention. For example, they expand their snack lines to include new flavors.
4. In Ukraine, the most popular snacks are “traditional” snacks – seeds and breadcrumbs. However, with the growing popularity of a healthy lifestyle, the demand for healthy snacks is growing: vitaminized bars, nuts and berries.
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