It’s time to get ready for summer. Some people are giving up baking, others are running around the apartment looking for a lost gym membership, and we, the COLORO agency, are researching ice cream brand strategies.
Analysis of the ice cream market has shown that the most favorite cold treat of Ukrainians remains plombir. It is bought by 81% of the population. Creamy milk ice cream without additives, chocolate ice cream and ice cream with fruit jams are also popular. You can learn more about consumer preferences here.
The most frequently bought product for individual use: in a cup, cone and on a stick. The second most popular package for a family or a company is 0.5 to 2 kg.
Ice cream production leaders in 2016
Zhytomyr region is ahead of the world. It is home to Zhytomyr Butter Factory PJSC (TM Rud) and Three Bears LLC, which produce 27% of the country’s ice cream.
The honorable second place is occupied by Dnepropetrovsk region – the home of LLC “Lasunka” and several other small enterprises. It accounts for 17.5% of production.
In Kirovograd region there is the enterprise “Laska”, which provides the market of cold desserts by 9.6%.
Other major producers of Ukrainian ice cream market are located in Kharkiv (Khladprom) and Lviv regions (Lvivsky Khladokombinat, TM Limo).
Other popular ice cream brands:
- Hercules TM;
- Ajur TM;
- TM Winter;
- Mosaic TM.
Dynamics of ice cream production in Ukraine
2 kg. This is how much ice cream is eaten per year by the average Ukrainian. Residents of Western Europe – 9.5 kg. And the rating of sweet lovers is headed by Americans – 23.5 kg per year!
Let us consider how the volume of ice cream production has changed over the last four years. The data was provided by the State Statistics Service of Ukraine.
From 2013 to 2015, there was a tendency to reduce production volumes. During this period, gross output of ice cream decreased by 21.38%.
Prerequisites for the decline in production volumes on the Ukrainian ice cream market:
In 2016, production volumes increased by 5.45% compared to 2015. The titans of the “cold” business are fighting for consumers by updating package design, launching new lines of ice cream, and launching umbrella brands so that capacities do not stand idle during the cold season.
It is too early to draw conclusions about the trends of 2017, because the ice cream market has a pronounced seasonality. And the temperature of 10॰C at the end of April does not contribute to the increase in demand for cold dessert.
Ukrainian ice cream exports
In 2016, 10 Ukrainian enterprises passed the EU inspection certification and received permission to export ice cream to Europe.
Lasunka exported about 56% of all Ukrainian ice cream in 2016. “Rud” owns 24% of the export flow. The main markets are Moldova, Georgia, the USA, Israel and the Arab Emirates. There are also plans to enter Bulgaria, Czech Republic and Lithuania.
As the analysis of the ice cream market shows, the main trend in 2017 is the production of “private label” goods for European retail chains.
Ice cream imports: we don’t need anyone else
In 2016, domestic producers provided the market with 99.8%. This trend has existed in the market for the last 10 years because the specifics of the product require expensive freezing equipment for transportation.
Import supplies are also directly related to the exchange rate of the national currency. If the exchange rate does not stabilize, purchases of ice cream from abroad will continue to be minimal.
Ice cream market trends
Manufacturers use natural ingredients and are phasing out preservatives and synthetic additives.
- In 2015, the brainchild of Zhytomyr businessman Petro Rud with the same name “Rud” launched TM “Eskimos-Organic”.
- In 2016, the company “Three Bears” especially for fans of healthy lifestyle launched the product TM “Your Farm”.
- “Lasunka, armed with the slogan “Ice Cream Like It Used to Be,” has brought a line of “old” recipes to market.
The design of the ice cream packaging uses Soviet motifs, references to milk packaging, simple fonts and a simple geometric pattern.
To emphasize the naturalness of the product, the company started to use eco-materials in the packaging. Non-bright “milk” colors and laconic design are the business card of TM “Morjo”. The brand strategy is also aimed at creating a sense of nostalgia.
Sometimes unscrupulous manufacturers misuse the marks “bioproduct”, “organic product” in the design of labels. Many of them do not even have supporting quality certificates.
The use of natural whole cow’s milk forces producers to raise the price of the product. Therefore, budget ice cream lines are appearing on the market in parallel .
This is a regular ice cream in a waffle cup, made in accordance with DSTU 4733:2007. Sales of low-price segment ice cream accounted for 52% in 2016.
Packaging, as a rule, cellophane (because it is an inexpensive material), design – bright to stand out among competitors.
Marketers of the company “Three Bears” thought for a long time how to make a woman forget about diet and pounce on a kilogram of ice cream. Since it is difficult to lead a Ukrainian woman off the intended path, the strategists backed off and created diet ice cream “Fit Line”.
It is not known whether the low-calorie line will help to lose extra pounds, but it will not get worse from it, as the quality level is confirmed by the international safety certificate ISO 22000.
The design of the product label breathes dynamics: a splash of milk, a slender girl on the logo, an emphasis on the use of bran in the composition. It is obvious that the ice cream is made for active people who take care of their bodies.
Another trend in the ice cream market is premium segment products. The slogan “Dive into the world of luxury” immediately warns that it is better not to count on a democratic price. The name “Monaco” also hints that this is a premium product for those who can afford a promenade along the French Riviera.
Among the ingredients are exotic fillings, non-standard flavors. Fine print in combination with gold and dark shades add sophistication and elitism.
Laska also decided to travel and released a line of products with references to different countries. The label design is bright and dynamic. The idea of “geographical” ice cream is interesting, but in the opinion of marketing specialists of the branding agency “KOLORO” it is poorly realized. The line has no unifying element, so it is not perceived by the buyer as a whole.
The main food consumption trends in 2016 can be found on the COLORO agency’s website.
Forecasts for the development of the ice cream market
1, Since 2000, the market has seen the consolidation of large companies and the liquidation of small local operators. While in the 1990s there were 150 registered ice cream producers in Ukraine, in 2013 there were only 23 of them left.
2, In 2017, the competition between manufacturing leaders will increase, so it is worth taking care of the quality components of the product and developing an effective brand strategy.
3, Production volumes in 2017 will increase slightly due to increased exports to Western Europe.
4, Companies will try to reduce the cost of ice cream, not at the expense of their own budgets, but by cutting back on serving size.
We will analyze the market for other products and create unique packaging. We will tell you about the main trends in brand promotion and draw a consumer portrait. We will answer your phone call and definitely lift your spirits.
We look forward to communicating with open arms.
