What is the secret of Ukraine’s rapidly developing yogurt market? What influences the level of production and consumption of “white oxygen”? Who are the “main players” in the market and at the expense of what do they hold their positions?
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| \t\t\t\t\tBranding agency KOLORO decided to find the answers to all these questions, and to this end has conductedmarketing research of the yogurt market in Ukraine. P.S. If you are interested in the latest market data on the yogurt market, as well as fermented milk and other products, please contact us and we will strategize and conduct a professional market research for you. And now, back to the topic of the article…\t\t\t\t\t\t |
Over the last decade, the Ukrainian yogurt market has been developing dynamically, and there are many reasons for this: increasing incomes of the population, general growth of demand for dairy products, “Europeanization” of consumption culture and fashion for yogurt. Moreover, it is the fashion for yogurt, due to the “Europeanization” of consumption culture, is the most significant reason.
The invention of yogurt is attributed to the ancient Turks, who called it “white oxygen”, and today the world leader in yogurt production is the USA. Yogurt came to us not so long ago, but has already managed to get a huge popularity among Ukrainian consumers. For the consumer, yogurt combines both health benefits and the ability to easily and conveniently satisfy wild, for example, office hunger – without harm to health. That is why, and thanks to successful advertising companies of manufacturers, yogurt has become a fashionable attribute of an active person, striving for constant maintenance of health in tone.
For the manufacturer, yogurt is a low-cost product that generates large amounts of profit. Yogurt is a product with a low milk content, which allows to use a small amount of high-quality and expensive milk for its production. In addition, this product gives the manufacturer immense opportunities to expand assortment positions.
Market overview and recent trends
In February 2012 yogurt production in Ukraine amounted to 6182 tons, which is 2.44% more than in the same period of 2011. In addition to the growth of domestic production, foreign deliveries are also growing, compared to 2011 increased by 32.5%.
As for consumption volumes, they are also steadily growing, on average by 4.8% annually. A drop in consumption was observed in 2008-2009 due to the economic crisis in the country and a decline in household incomes, but from 2010-2011demand and consumption started to grow again, and amounted to 79.2 thousand tons. In 2012-2013 consumption growth continued, but starting from spring 2014, due to logistical and other problems of product delivery to certain regions, it is expected that by the end of 2014, if the problems are not solved, we will see a significant market decline, perhaps even comparable to the decline of the economic crisis period, or even more so. However, part of this loss, farms and enterprises that have passed the necessary licensing and fall within the volume of quotas for imports of imported products to the EU, will be able to somewhat compensate for the market decline, due to the opening of preferential imports of Ukrainian products to the EU, within the framework of Ukraine’s signing of the “political” part of the Agreement on Free Trade Zone with the EU. But, it will be possible to talk about it in detail after receiving more recent data for the period of the last 6-8 months. If you are interested in this topic, please contact us, we will help you to organize a similar marketing research on “dairy products” and/or yogurts. But for now, let’s return to the data we have already refined.
So, it is clear that the level of yoghurt consumption is generally influenced by such factors as the general demand for dairy products and the income level of the population. Both of these indicators are significantly higher in large cities. However, in recent years, the differences in yoghurt consumption between urban and rural areas have been increasingly smoothed (including due to the development of infrastructure in villages and small towns, along with the tendency of the urban indigenous population to migrate to the countryside due to the decreasing comfort of life in megacities and overpopulation).
Dynamics of development of the Ukrainian yogurt market
Consumption volumes
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| \t\t\tГод\t\t\t | \Volumes, thousand tons |
| \t\t\t2000\t\t\t | \t\t18\t\t\t18\t\t\t\t |
| \t\t\t2001\t\t\t | \t\t32\t\t32\t\t\t\t |
| \t\t\t2002\t\t\t | \♪t46 ♪t46 ♪t46 ♪t♪ |
| \t\t\t2003\t\t\t | \♪ 60 ♪ |
| \t\t\t2004\t\t\t | \♪ I’ve got a lot of time on my hands ♪ |
| \t\t\t2005\t\t\t | \♪ I’m not the only one ♪ |
| \t\t\t2006\t\t\t | \t\t85\t\t\t85\t\t\t\t |
| \t\t\t2007\t\t\t | \t\t86\t\t\t86\t\t\t |
| \t\t\t2008\t\t\t | \♪ I’m not the only one ♪ |
| \t\t\t2009\t\t\t | \t\t\t77\t\t\t77\t\t\t\t\t |
| \t\t\t2010\t\t\t | \♪ I’ve got 79.2 ♪ |
| \t\t\t2011\t\t\t | \t\t\t\t83\t\t\t\t\t\t\t. |
Structure of Ukrainian yogurt market, %
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| \Product typeProduct type | \t\t\t2007\t\t\t | \t\t\t2008\t\t\t | \t\t\t2009\t\t\t | \t\t\t2010\t\t\t | \t\t\t2011\t\t\t |
| \Drinkableyogurt. | \♪ 60 ♪ | \t\t62\t\t62\t\t\t. | \♪ ♪ | \♪ ♪ | \t\t\t71\t\t\t |
| \Thickyogurt. | \♪ ♪ | \t\t38\t\t38\t\t\t¶ | \t\t35\t\t35\t\t\t | \t\t\t33\t\t\t\t\t\t\t | \t\t\t29\t\t\t |
In addition to consistency , yogurts can be classified by flavor: yogurts with fruit or other fillings (cereals, chocolate) and pure, without added fruit and sugar.
In the segment of fruit yogurts in Ukraine, the largest share is traditionally occupied by strawberry flavor (about 25% of total consumption). As for the category of pure yogurts, without filler, in many European countries they own almost half of the market. In Ukraine the fashion for natural yogurts, without sugar and fillers, is only beginning to form. And so far this product is present in the portfolio of few companies.
The largest yogurt producers in Ukraine
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| \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t |
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| \Largestyoghurt producers in Ukraine in 2011, %% | |
|---|---|
| \t\t\tДанон-Юнимилк\t\t\t | \t34.2. |
| \WesternDairy Group Halychyna | \♪ 14.9 ♪ |
| \t\t\tВимм-Билль-Данн\t\t\t | \t\t\t\t10.6\t\t\t\t\t\t |
| \Lactalis. | \t\t\t\t10,1\t\t\t\t\t\t |
| \Thank you. Thank you. | \t\t\t\t7,1\t\t\t\t\t\t |
| \Rainford. | \t\t5,4\t\t\t\t\t\t |
| \Hercules. | \t\t\t\t3,2\t\t\t\t\t |
| \Ternopil Dairy Plant | \t\t2\t2\t\t\t |
| \The other ones. | \t\t\t12,5\t\t\t\t\t\t |
The market leaders over the last decade remain three producers: Danone-Unimilk, Halychyna and Wimm-Bill-Dann.
In addition to identifying market leaders, we decided to determine the awareness of individual yogurt brands among consumers. Below you can see the results of the research on this issue.
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| \The characteristicthat best matches the brand awareness, %%% | ||||
| \Thebrand name. | \They alwaysbuy products fromthis brand. | \You’ve heard ofthe brand, and sometimesbuy their products. | \They’ve tried thebrand’s products, , but they’re not buying them. | \Theydon’t know anything aboutthis brand. |
| \t\t\t“Гурминика”\t\t\t | \t\t\t11\t\t\t\t\t\t | \t\t32\t\t32\t\t\t\t | \t\t27\t\t27\t\t\t\t | \t\t\t30\t\t\t30\t\t\t |
| \t\t\t“Добряна”\t\t\t | \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t | \t\t\t23\t\t\t\t\t\t | \t\t18\t\t\t18\t\t\t\t | \t\t\t54\t\t\t\t\t |
| \t\t\t“Активиа”\t\t\t | \t\t22\t\t\t22\t\t\t\t | \t\t37\t\t37\t\t\t | \♪ I’ve got a lot to do ♪ | \t\t\t\t13\t\t\t\t\t\t |
| \t\t\t“Галичина”\t\t\t | \t\t\t21\t\t\t\t\t. | \t\t22\t\t\t22\t\t\t\t | \t\t\t23\t\t\t\t\t\t | \t34\t34\t34\t |
| \t\t\t“Щодня”\t\t\t | \t\t\t19\t\t\t\t19\t\t\t | \t\t29\t\t29\t\t\t\t | \t\t27\t\t27\t\t\t\t | \t\t25\t\t25\t\t\t |
| \t\t\t“Фанни”\t\t\t | \t14. | \♪ I’ve got a lot to do ♪ | \t\t\t33\t\t\t\t\t\t\t | \t\t25\t\t25\t\t\t |
| \t\t\t“Даниссимо”\t\t\t | \t\t\t19\t\t\t\t19\t\t\t | \t\t35\t\t35\t\t\t | \t\t32\t\t32\t\t\t\t | \t14. |
| \“2 BIO.” | \t\t\t\t13\t\t\t\t\t\t | \t\t27\t\t27\t\t\t\t | \t\t25\t\t25\t\t\t | \t\t35\t\t35\t\t\t |
| \t\t\t“Чудо”\t\t\t | \t\t18\t\t\t18\t\t\t\t | \t36\t36\t36\t36\t | \t\t\t23\t\t\t\t\t\t | \t\t\t23\t\t\t\t\t\t |
| \t\t\t“Простаквашино”\t\t\t | \t\t\t\t8\t\t\t\t\t\t | \t\t\t21\t\t\t\t\t. | \t31t31t31tzt | \♪ ♪ |
According to the results of the assessment of yogurt brand awareness among consumers, it can be noted that not only the most famous brands, but also brands with a large number of loyal consumers are TM “Activia” (from Danone-Unimilk), TM “Halychyna ” (from Western Dairy Group Halychyna) and TM “Danissimo” (from Danone-Unimilk). In other words, the most well-known and consumed yogurt brands are those of the same market leaders.
What consumers are guided by when choosing yogurt? Product selection criteria
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| \Factorshaving greatestinfluence on yogurt brand choice, % (consumers were allowed to choosemore than one answer option when responding) | |
| \Advice fromfamily, friends, acquaintances. | \t\t\t54\t\t\t |
| \t\t\tТелевидение\t\t\t | \t\t\t38\t\t\t |
| \Informationat the point of sale (window dressing, counters). | \t\t\t31\t\t\t |
| \Sales counseling. | \t\t\t28\t\t\t |
| \Newspapers, magazines. | \t\t\t9\t\t\t |
| \Personalexperience. | \t\t\t9\t\t\t |
| \Outdooradvertising. | \t\t\t7\t\t\t |
| \Transportation advertising. | \t\t\t5\t\t\t |
| \t\t\tИнтернет\t\t\t | \t\t\t3\t\t\t |
| \t\t\tРадио\t\t\t | \t\t\t3\t\t\t |
Choosing a brand, the consumer, strange as it may seem, is primarily guided by the advice of his relatives and friends, but among the means of advertising, the most effective in influencing the opinion of the consumer are television and sales promotion at the point of sale (design of points of sale and advice from sales consultants).
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| \The mostimportant characteristics of drinking yoghurts, highlighted by Ukrainian consumers, %%% | |
| \It’s goodfor the body. | \t\t\t73\t\t\t |
| \Tastequality. | \t\t\t23\t\t\t |
| \Brand awareness. | \t\t\t2\t\t\t |
| \The designand convenience of the packaging. | \t\t\t1\t\t\t |
| \The breadth of thebrand’s assortment. | \t\t\t1\t\t\t |
The consumer’s choice of yogurt is largely determined by two characteristics of the product: Benefits to the body and taste.
Places to buy the product
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| \WhereUkrainians buy yogurt, %% of yogurt purchases | |
| \Regulargrocery store. | \t\t\t42\t\t\t |
| \t\t\tСупермаркет\t\t\t | \t\t\t34\t\t\t |
| \Departmentstore, mini-market. | \t\t\t19\t\t\t |
| \Stall, stall, stall. | \t\t\t4\t\t\t |
| \Foodmarket. | \t\t\t1\t\t\t |
Summary
The yogurt market in Ukraine is one of the fastest growing markets, and yogurt as a food product is becoming increasingly popular in Ukraine. The share of drinkable yogurts exceeds the share of thick yogurts in the consumption structure more than twice.
In the segment of fruit yogurts in Ukraine, the largest share is traditionally occupied by strawberry flavor (about 25% of total consumption). As for the category of pure yoghurts, without fillers, in many European countries they own almost half of the market.In Ukraine the fashion for natural yoghurts, without sugar and fillers, is just beginning to form. And so far this product is present in the portfolio of few companies.
The yogurt market leadersover the last decade are three manufacturers: Danone-Unimilk, Halychyna and Wimm-Bill-Dann. The most well-known and consumed yogurt brands are those of the same market leaders: TM “Activia” (from Danone-Unimilk), TM “Halychyna” (from Western Dairy Group Halychyna), TM “Danissimo” (from Danone-Unimilk).
When choosing a brand, the consumer, strange as it may seem, is primarily guided by the advice ofhis relatives and friends, and of the means of advertising that most effectively influence the opinion of the consumer are television and sales promotion at the point of sale (design of points of sale and advice of sales consultants).The choice of yogurt by the consumer is largely determined by two characteristics of the product: Benefits for the body and taste.
The yogurt distribution locations with the highest sales volumes are: grocery stores and supermarkets.
How didDanon-Unimilk, Halychyna andWimm-Bill-Dann come to the top of the list of Ukrainian producers?
Danone-Unimilk, Galicia and Wimm-Bill-Dann are three manufacturers that have been leading the yogurt market for the past decade. And it’s all down to the fact that these companies have chosen the right positioning of their brands and are pursuing an active promotion policy.
According to the study, the most important characteristics of yogurt as a product are its health benefits and taste. This is exactly how the market leaders position themselves – as “the tastiest and also the healthiest” brands.
Danone-Unimilk and Wimm-Bill-Dann, for example, position their yogurts as natural, made from normalized, reconstituted or recombined milk. Their yogurts have“unique beneficial properties” and“magical effect on digestion“. In addition, all this is complemented by the widest range of products and all kinds of flavors.
As for Halychyna, its positioning concept is unique! Yogurts TM “Halychyna”are made according to the old traditions of ancient milk production, milk from the expanses of the Carpathian Mountains and Polonins is used in their production. European production technology makes yoghurts TM “Halychyna” alive, healthy and gives them a rich flavor.
