Alla Barinova, Manager Moscow, Bord Bia – Irish Food Board
Economic recovery projections of Ukraine are expecting ~3% GDP growth in the coming years. Modern grocery retailers are rapidly developing all over Ukraine, and the total selling space of Ukrainian groceries will grow with the expansion of modern formats. Ukrainian retail market is dominated by a few large Ukrainian and foreign retailers.
Demand for imported alcohol grew in 2016 – 2018 due to a growing base of loyal consumers, a rise in the number of imported brands and the general tendency to try new products among younger Ukrainians. Typical consumers of spirits in Ukraine are men. Increased mobility and travelling among young people has changes drinking habits, resulting in growing interest in whiskey, gin, rum and wines. More people are willing to spend money on better-quality alcoholic drinks and are more interested in the origin and quality of products.
Great Britain, USA and Ireland lead the import with the total of 90%+ imported whisky volume share, and ~80% gin volume share.
Distributors are focusing on product innovation in terms of bottle size, new brands, the extension of available products and improved distribution. Alcoholic drinks is expected to record modest total volume growth in the future due to the improving economy. The fastest progress will be seen within cider, brandy, rum, whiskies, still light grape wine, sparkling wine, premium lager and flavoured/mixed lager, with sales being driven by growing demand for quality and new flavours. Spirits will remain one of the largest alcoholic drinks areas.
The market has optimistic economic recovery projections and increasing consumer confidence, reported strong current value growth in grocery retail, rapid development of modern grocery as well as alcohol specialists. All of this coupled with forecasted significant growth of spirits consumption with a focus on premium products driven by increasing interest and demand for imported alcohol, presents opportunities for Irish spirits companies in the Ukraine.
For the full report please apply to alla.barinova@bordbia.ie