Pasta is a food made of dried dough and water. Their main constituents are proteins and carbohydrates. Pasta contains at least 11 – 12% protein, 70-72% carbohydrates (mainly starch), 13% moisture and 0.5-0.7% fat. Their cost is very moderate, and cooking does not take much time, so this product is traditionally in demand. World companies produce more than 12 million tons of pasta per year. The Italians are in first place in the consumption of this product . This is a traditional dish of their cuisine. They are followed by East Asians. Wok and udon noodles are popular there, and there are also many variations of rice noodles.
Ukrainians consume from 4 to 5 kilograms of pasta per year. In Europe, this figure is 12 kilograms. In November 2016, new standards of the consumer basket for Ukraine were announced. According to them, the diet of an average Ukrainian should contain 4 kg of pasta per year.
Pasta market analysis: product types:
- durum wheat products;
- soft wheat products.
The former are a higher quality product, their cost is higher. Durum wheat pasta has fewer calories and more gluten. Soft wheat pasta has more calories because it has a high starch content. Also, it is difficult to make shaped products from soft varieties, so more often vermicelli is made from soft varieties, and cones – from hard varieties.
According to varieties, Ukrainian pasta is divided into:
- second (B);
- FIRST (B):
- highest (A).
If certain ingredients have been added during the manufacturing process, this will be stated on the packaging. For example, egg noodles or multicolored pasta with cuttlefish ink (with a distinct black color).
The largest share of pasta products without filling, not heat-treated or otherwise cooked, is produced. The share of such products in total production varies around 80-85%. The remaining 15-20% is accounted for by heat-treated noodles and a variety of pasta with fillings.
Pasta market overview: production picture
Pasta is made from wheat, as we wrote above. 2016 was a good year for farmers, they harvested almost record harvest of grain crops – 59.8 mln. tons. При этом большинство этого урожая пошло на экспорт. В нынешнем маркетинговом году (июнь 2015— июль 2016) Ukraine exported 39.4 mln tons of grain . Но цены на зерно падают, гораздо выгоднее экспортировать пшеницу в виде готового продукта: макарон. Сейчас же сложилась ситуация, при которой страна экспортирует зерно в Италию, где из неё делают макароны, которые после Украина импортирует. Это негативная тенденция, отмечает Алексей Якубин (политолог). Украине нужно переориентироваться, потому что продажа сырья неизбежно ведет к углублению кризиса.
Domestic producers account for more than 85% of the Ukrainian pasta market. The remaining 15% are imported products. The year 2014 was a turning point for the pasta market. Production volumes decreased by 10% compared to 2014: 103.4 thousand tons against 93.1 thousand tons. In 2015, the decline in production continued, and the industry closed the year with volumes of 79.9 thousand tons (or minus 14% compared to 2014). At the beginning of 2016, volumes continued to decline: 13.9 thousand tons were produced in January-February. This is 7% less than the same period of 2015.
The annexation of Crimea by the Russian Federation and the conduct of the ATO severely damaged volumes. The Simferopol pasta factory had a 15% market share (in volumes). The Donetsk pasta factory was also in the lead (at the end of 2010 it held 10% of the market). The loss of these production facilities has hit the market saturation with products hard.
Pasta market overview: imports and exports
Imports of pasta products were growing until the devaluation of the hryvnia occurred in 2014. After that it went down. Italy ranks first in the world import of pasta, but its share is actively decreasing. Turkey is in the second place, and China is in the third place. However, imports from China are cheaper than from Turkey.
The Simferopol pasta factory used to export50% of its production (occupying 15% of the Ukrainian market share). With the annexation of the ARC, we lost this share in imports. In the first 9 months of 2015, Ukraine exported pasta worth 28.4 million dollars. This figure is more than in the previous year. However, it will not be possible soon to catch up with the pre-crisis figures and results before the Russian market closes. It is also worth considering that even in 2013 exports were quite low. The peak was in 2012 , and it was preceded by a 3-year stagnation (see Diagram 1).
Pasta market analysis: consumption picture
In Ukraine, the attitude to pasta as a healthy product that can be a delicacy is just forming. Stereotypes that pasta is food for the poor are still strong. They have their roots in the USSR. During the Soviet Union, domestic pasta quickly boiled away, turning into an unappetizing, sticky mass.
However, there is a gradual breaking of these stereotypes. In urban areas, the consumption of quality imported durum wheat pasta grew during economic peaks and fell with the crises (2008 and 2014). Today, pasta is regularly consumed by 96.5% of the Ukrainian population (this includes all types of pasta and instant noodles). Demand for the mid-price segment of products is stable. In 2016, retailers’ STM consumption continues to grow, and pasta also shows growth in this category.
The main criterion of choice for consumers is price. In this case, most people focus on the middle segment, rejecting the low segment as a low-quality product and the premium segment as a product with a price “markup”.
More information on consumer preferences can be found in our previous pasta market report.
Pasta is constantly present in the diet of students and pensioners. Usually in a crisis the consumption of pasta increases. The consumer price index (inflation index) in January-May 2016 amounted to 105.2%. This figure is less than in 2014: 140.1%. In this period, the price went up by 5% (±2).
Among the premium segment of products until the first third of 2014, there was an increase in consumption as imports grew. But the currency collapse made imports more expensive, so the number of foreign (primarily Italian) pasta decreased on the shelves.
To determine consumer preferences, contact KOLORO. We’re not taking you!
Pasta market analysis: key players
1. Ukrainian Macaroni OOO operates Chernihiv and Khmelnytskyi mac aroni factories. It produces macaroni under the brand name “Taya”. In 2014, the company was the market leader and controlled 17.5% of production volumes.
The design of the Taya packaging is very simple. The center of the package is dedicated to the viewing window. The edges are decorated with a mosaic tile pattern in green-red color scheme. The logo is quite massive and highly detailed. Inside the bright red circle is a picture of lanais and a rustic white house. The pasta is packaged in flow-pack, which is the most popular type of pasta and cereal packaging on the Ukrainian market. There is also a line in cardboard packages, which depicts a family of 3 with a plate of pasta. Color scheme: red and green colors and minor flecks of yellow.
2. PJSC “Makaronnaya Farika” is located in Kiev and has been producing pasta since 1914. Today its production capacity is 20 thousand tons per year.
The pasta is packaged in a flow-pack. The design of the logo has not been updated for a long time and evokes mixed feelings. It consists of a red background with the name and location of the factory and side decorations. Above the coat of arms logo is a crown. The presence of spikelets in the logo speaks about the naturalness of the product, but their color (gold) and location (on the edges) bring associations with the Soviet coats of arms of Ukrainian cities . Издалека есть шанс перепутать продукцию с брендом «Тая», as there is a viewing window in the center too, and there is a lot of green at the top and bottom of the packs. In the center, besides the logo, there is an illustration with fields and a mill. The fonts on the packs are ornate. Color scheme: green, red gold.
3. national company “Chumak”. Pasta is just one of the products that the company produces under the umbrella brand of the same name. All packages are made in the same style, and different shades of blue are used for the logo and for the main color of the packaging.
The design of “Chumak” macaroni package looks harmonious. The central part is given to the viewing window. The main color harmonizes well with the color of the product. Although the manufacturer does not use literal symbols (fields and lana), it creates a lasting impression of the naturalness of the product. This is helped by the combination of blue with the color of the product, which subconsciously associates consumers with a wheat field and blue sky. Also all packages of “Chumak” pasta are decorated with an appetizing photo of smoking pasta (at the bottom).
The Chumak logo is also blue, there are no unnecessary details in it, and the white letters harmonize well with the main color of the packages. Like the two previous companies, Chumak packs pasta in flow-pack. Of all the above-mentioned packages, Chumak looks the closest to the European design, the packaging is not overloaded with unnecessary details and creates a positive image of the product.
4. Zodiak LLC – the enterprise is located in Kharkiv region, production capacity: 2000 thousand tons of pasta and 2500 thousand tons of flour per month. The company produces products under the brands Pasta Do`ro and Zodiac. However, the main profit of the company comes from the production of products for STM supermarkets. They produce pasta for the brands Khutorok, Sto Pudov, Vigoda and Aro. The company also sells bulk products without packaging.
Zodiac brands are similar visually. Both (Pasta D’oro and Zodiac) are dominated by red color, both are packed in flow-pack. For the first one, the company clearly tried to create an image of an imported product, but the hoax fails, as there is a large icon at the bottom of the package, which indicates the Ukrainian origin of the product. On the packaging of Zodiac pasta we meet fields and a mill. However, there is also an illustration here, which is done in the style of a pencil drawing. The reception is very nice, and would be more successful if all the illustrations were done in the same style. The brightly colored mill at the top takes a lot out of the image. The combination of red and blue doesn’t make for a cohesive image either.
Other significant players in the pasta market are:
- Native Product Company (Khutorok, La Pasta, Pasta Letta brands);
- Lauffer Group (brands Pasta Grande, Urozhay);
- Milam MF LLC (MilaM and Daelia brands);
- PJSC “Vinnytsia Macaroni Factory” (brand “Podilsky Krai”).
Pasta research: trends in design
Having reviewed several examples of Ukrainian pasta packaging design, we found out that the main elements of communication are the image of fields, wheat spikelets and mills, as well as the use of viewing windows to demonstrate the product. Some producers try to create an image of “Italian” products. Some are better at it (La Pasta, Pasta Letta by Rodnoy Product and Pasta Grande by Lauffer Group Holding), others are less successful (Pasta D’oro by Zodiac). We have reviewed several packages that were presented in Europe and America in the last couple of years and highlighted those that look winning and could serve as inspiration for Ukrainian producers.
Pasta packaging design: a challenge to competitors
In 2014, Russian designer Nikita Konkin blew up the design community with his pasta packaging concept. The idea was simple and revolutionary at the same time. He made a white pack, and made the viewing window in the shape of “hair”. By drawing women’s faces on the package, he made the contents, the pasta, perform the function of a woman’s hair. This idea is still at the top of the Google search for “pasta packaging design” (also in English). We are not sure that this pack would be a success among Ukrainian consumers. However, it would undoubtedly stand out on the shelves and increase brand recognition.
A playful message is not always appropriate for an “adult”. It may scare off some of the target audience. Bold packaging could narrow down the target audience of the product to young, self-confident women with an income of “average” or “above average”. Sales of such pasta would be highest in this target group. The KOLORO agency, however, prefers to conduct research before starting work on the packaging. This way we highlight consumer preferences and create a package that will definitely be a sales leader.
Pasta packaging design: openness at the service of quality
The designers of Los Italianos brand chose a similar color solution, but more traditional for pasta. The packaging is made according to all the rules of minimalism, and the combination of white and gold adds premiumness and nobility to the image. The packaging turned out to be restrained and stylish, it emphasizes the quality of the product (thanks to the transparent material) and inspires confidence in the consumer. The manufacturers send a very correct message to consumers: our product is good, we do not hide anything from you, our packaging allows you to see it from all sides. A similar type of packaging can also be found in Ukrainian brands (e.g. Mak-Var Ecoproduct).
We have already written about the trend of combining gold and white in our article on conquering European markets.
Pasta design: not like the others
Nudellini pasta, as well as the first packaging concept, stands out very much from the competition. We were attracted by the design, because it is in the case of pasta that geometry allows us to tell more about the product, rather than just decorating the packaging. Unusual colors draw attention to the brand and “catch” the eye of consumers. It should be noted that such a design would definitely not become a sales leader of the medium-price segment in Ukraine. It would be suitable for niche products of the premium segment, the target audience of which are daring aesthetes with high income. Nudellini would not be able to supplant the brands “Taya”, “Khutorok” or “KMF”.
Pasta design: just what you need
The following two example packages would sell well in the Ukrainian market.
The first is the Fusilli brand in flow-pack packaging. In our review of the leaders, we found that this type is the most popular in Ukraine. Flexible packaging is inexpensive and protects the products well from external factors. About 40% of Fusilli packaging is occupied by the label. We would like to note that it is as simple as possible. All information is well distributed around the perimeter, the color scheme allows you to distinguish the varieties of pasta. The tone of the label perfectly matches the additive that is responsible for the color of each species (different legumes). Importantly, the cooking time is indicated in large letters in the corner of the package. Fusilli is an example of stylish and minimalistic packaging, the development and production of which, will cost a reasonable amount of money.
The second one is Tavola. The packaging is made of dense kraft cardboard and flexible film, which is used for the design of the viewing window. Cardboard makes production more expensive, but at the same time it is considered a premium material. Therefore, the price of the tokay product can be higher. In the design of Tavola we were most attracted by the pasta recipe, which is written in large letters on the back of the packet. Such care about consumers will definitely return more than enough to the brand. On the Ukrainian market, this form of packaging is presented by the brand Galitsky Traditions (square cardboard packaging under Kraft).
To stay on top of trends and create amacaroni packagingdesign that will attract consumers and create a positive brand image, contact KOLORO. We will develop the design by conducting preliminary research. This ensures that allour work hits the mark.
Pasta market: forecast
- Pasta consumption could increase significantly if the economic situation remains unstable and inflation continues. Pasta is a relatively inexpensive product and its consumption increases in crises.
- The share of imported products on the shelves of Ukrainian stores will not soon return to the pre-crisis indicators of early 2014. Demand for it has slightly decreased, while the cost has significantly increased due to the devaluation of the national currency.
- Ukrainian producers need to grow more flour suitable for pasta production, the director-general of the Ukrhlebprom association, Oleksandr Vasylchenko, has said. According to the director-general of the Ukrhlebprom association, Oleksandr Vasylchenko, today soft wheat dominates in Ukrainian harvests, while hard wheat is needed for quality pasta. For this purpose, producers should be concerned about setting up full-cycle production (with their own land and quality control of raw materials). This will allow exporting the finished product to foreign markets, which will bring more profit.
- Ukrainian consumers will continue to choose a domestic pasta producer until the end of the crisis, as the cost of its products is lower than the cost of imports. Companies now find it most profitable to produce pasta from durum wheat varieties with an “Italian” legend. Packages that look like Italian (with quality products inside) will be a success with consumers. This will help the technique of “mystification”: creating a brand with a foreign name and different packaging. The price for such pasta can be higher than average, but lower than the cost of imported products.
To keep abreast of market trends, respond quickly to economic challenges and capitalize on the status quo, contact KOLORO. We will conduct a desk study and find a way to make lemonade out of lemon.
