The market of sauces and mayonnaise in Ukraine is quite diverse. KOLORO branding agency conducted a market research of the mayonnaise and sauces market, the overview of which is presented below.
The purpose of the market research was to identify market trends, market leaders and their competitors.
Peculiarities of the mayonnaise market in Ukraine
A sauce is a condiment that contains various spices and flavorings that enrich the taste of a main dish or side dish. The most common sauces in the world are: mayonnaise, ketchup, soy sauce, tartar sauce, sacebeli, mushroom sauce, garlic sauce, fish sauce and béchamel sauce.
Many Ukrainians like spicy and savory dressings for main meals, such as ketchup, mustard, horseradish. Others (and their majority) remain adherents of classic mayonnaise and sauce. Every second resident of Ukraine is a mayonnaise consumer. The average Ukrainian eats about 2 kg of mayonnaise, ketchup and other sauces per year.
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Types of mayonnaise:
- high-calorie – with a fat content of more than 55%;
- medium calorie – with a fat content of 40-50%:
- low-calorie (light) mayonnaise with a fat content of less than 40%.
In the minds of consumers, mayonnaise is associated with fatty and unhealthy products, which is why Ukrainians are trying to reduce mayonnaise consumption. In this light – low-calorie mayonnaises and sauces, which are associated with lighter and less fatty dressing, are gaining popularity. Their share in the market of all sauces is gradually growing.
The mayonnaise market is subject to seasonal fluctuations: sales usually increase before holidays. High-calorie mayonnaises are in demand in autumn and winter, while low-calorie mayonnaises and light sauces are in demand in spring and summer.
Mayonnaise and sauces are available in different containers and different capacities:
- glass jars;
- plastic bucket;
- plastic tray;
- lying bag (sachet, fil-pak);
- stand-up pouch (doy-pack with a twist-nose closure);
- other things.
More than 80% of products are made in doy-packs, as they are very convenient to use. At the same time, products in doy-packs are 70-80% cheaper than products in glass containers.
As for the price situation in the sauces and mayonnaise market, there are three segments: premium-class sauces (their share is 10-15%), medium-price segment sauces (60% share) and economy-class sa uces (25%).
Sauces and mayonnaise are usually bought once a month (33% of consumers), once every two months by 31% of consumers, once a week by 21%, once every three months and less frequently by 15%.
Main trends in the Ukrainian market of sauces and mayonnaise
Recently, the Ukrainian market of mayonnaise and sauces has been experiencing a downward trend in the production of these products, as well as the displacement of smaller market players by larger manufacturers.
In 2010 the production volume decreased to 162 thousand tons (by 1.2%), and in 2011 it increased to 163.8 thousand tons. – increased to 163.8 thousand tons. In 2012, the trend of production decrease to 160.5 thousand tons is still in place.
Despite the decrease in mayonnaise production in physical terms, the market volume in monetary terms continues to grow. This is due to the appreciation of raw materials. Thus, in 2008-2012 the market volume of mayonnaise and sauces increased 2-fold.
More than 90% of mayonnaise products are represented on the Ukrainian market of domestic production, about 10% – the share of imported products.
Domestic producers work both to saturate the domestic market and to export products abroad. Despite the constant growth of exports in monetary and physical terms, imports of mayonnaise products exceed exports and are constantly growing. On average for the period 2009-2012 imports grew by 25%.
Mayonnaise products and sauces are mainly imported from Poland, Germany and Russia (together about 75%). Mayonnaise is mainly exported to Moldova, Belarus and Russia (together more than 75%). The main companies exporting mayonnaise are Chumak, Nestlé Ukraine LLC, Technocom LLC and Agrocosm LLC. They account for 25%, 21%, 22.% and 9%, respectively.
Structure of mayonnaise and sauces market. Main players, their brands and competitors in Ukraine
The Ukrainian market offers a wide range of classic mayonnaises and sauces.
Mayonnaise producers in the domestic market are roughly divided into three groups: oil and fat combines operating since Soviet times, new companies with an aggressive marketing policy, and small regional firms that do not have their own brands.
The first group includes such large companies as: PJSC “Volinholding”, PJSC “Lviv Fat Combine”, PJSC “Chumak”, LLC “Olys”, they hold 40% of the entire Ukrainian market. Among the second group are Viktor & K PE, TK Urozhay LLC, Prime-Product LLC. The third group holds 18% of the mayonnaise market, they include: LLC “Kristall Multiprofile Enterprise”, LLC “Novovodolazhsky Oil and Fat Complex” and others.
Structure of the Ukrainian market of mayonnaise and sauces. According to the data of 2010, the main players on the mayonnaise products market were the following companies: Volinholding with a market share of 24.8%, Chumak – 16.4%, Lviv Fat Plant – 11.6%, TC Urozhay – 10.2% and PE Viktor & K – 5.7%. Compared to 2010, the market structure in 2011 has changed: the first place is still occupied by “Volinholding”, its share increased by 1.1%, the second place was taken by Lviv Fat Factory, and its share amounted to 11.7%. The top three leaders with a market share of 9% were closed by Viktor & Co. “Chumak and TC Urozhay in 2011 had shares of 7% and 6.35%, respectively.
Volynholding.
The market leader is Volinholding PJSC with its own trademark ” Torchin”. Starting from 1998 Torchin began to produce mayonnaise in doy-pack for the first time, which allowed to increase the sales volume 4 times and take the leading position. In 2003. “Volinholding” joined Nestle group and thanks to its support TM “Torchin” is the absolute leader in the market of dressings. Torchin occupies 97% of the soup and borscht dressing market, 63.4% of the ketchup market, 51.9% of the sauce market, 48.5% of the mustard market, 23% of the mayonnaise market. The basis of the company’s leadership is a wide range of products, quality, innovation, active marketing activities and advertising.
Mayonnaise of Torchin brand is represented by the following product line: European mayonnaise, Provansal Traditional 67%, Provansal Domashniy, Delikatesny. Sauces: “Paprik”, “Tartar”, “Garlic”, “Mushroom” and others.
Lviv Fat Combine.
Lviv Fat Combine produces mayonnaise under the brand name “Shchedro”. Shchedro boasts a unique mayonnaise “Lvivsky Premium” with fat content of 80%. This is the mayonnaise with the highest fat content in the domestic market, and has no analogues. Other types of mayonnaise Shchedro: “Provansal ORGANIC” – the first Ukrainian mayonnaise without artificial colors and preservatives; “Salad” – light mayonnaise with 30% fat content; “Lenten” and “Olive” – for people who observe fasting; “Cheesy”, “Mushroom”, “With horseradish” – for lovers of original flavors. Since 2009, Shchedro mayonnaises have been produced using natural fermented yolk.
Sauces of Shchedro trademark on the Ukrainian market are: “Mushroom”, “Paprik”, “Tartar”, “Homemade with garlic and aromatic herbs”, “Krasnodar” and others.
Chumak.
PJSC “Chumak ” produces mayonnaise under the trademark “Chumak ” of the following types: “Real”, “Appetite”, “Real Light”, “Provençal”, “Lenten”, “Egg”. Sauces – “Bulgarian with sweet pepper”, “Tartar”, “Carpathian with horseradish”, “French with mustard” and others. In 2008, Chumak introduced a new technology for the production of mayonnaise without preservatives.
PE “Victor and K”.
PE “Victor and K” represents in the market of Ukraine mayonnaise under the trademark “Korolevsky Smak ” of the following types: “Chudoviy”, “Lagidny”, “Korolevsky”, “Provençal”, “Kulinarny”, “Olive”, “Vesnyanyi” and others. Sauces under the same trademark are: “Krasnodar”, “Ukrainian”, “Sacebeli”, “Shashlychny” and “Shastrychny”.
TC Harvest.
TC “Urozhay ” produces mayonnaise of “Slavoliya ” trademark in different fat content: “Salad”, “European”, “Provençal”, “Light” and “Domashniy”.
Other competitors in the domestic mayonnaise and sauces market are:
- Prime-Product LLC (trade mark “McMay” holds leading positions on the markets in Donetsk and Kharkiv regions);
- Bunge Ukraine (Oleina and Olys trademarks);
- Lutsk Foods PJSC (trademark “Runa”);
- Trade House “Gospodarochka” LLC (sauces of “Gospodarochka” trademark);
- ACC LLC (TM “Tomidora”);
- Uniliver Ukraine LLC (Calve TM);
- PJSC Kyiv Margarine Plant (TM Olkom);
- LLC “Forres” (TM “Forres”).
SUMMARY
Thus, sauces and mayonnaises are supplied to the Ukrainian market mainly by domestic producers, the number of players in the market is very large, which sets a high level of competition. This, in turn, stimulates market players to compete on price-quality ratio and product range.
Low-calorie mayonnaises and sauces of all kinds are gaining the greatest popularity in the mid-price segment. Therefore, this segment is the most attractive in the long term.
If you are interested in this material and want to get a complete market analysis with up-to-date data, contact KOLORO branding agency. We will not only conduct market research, but also develop for you a brand design of the product (packaging, label), logo design, carry out registration of the trademark, as well as develop a presentation, a line of names, the concept of positioning of your brand, market entry strategy, brand legend, brand book, as well as help you solve other marketing and branding tasks!
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