Ukraine is a developing country with a market-oriented economy and a highly competitive agricultural sector that serves as its engine of economic progress. The nation lived up to achieve its status as the “breadbasket of Europe” and to assist the global challenge of sustainable food supply and security.
Moreover, the government has recently approached key reforms of global importance, such as simplifying business regulations, consolidating the banking sector, mending the transparency of public acquisition, and establishing anti-corruption agencies, all to enhance the business climate.
All these aspects, combined with a growing demand for premium food products and the emergence of the health food trend present for a long time in Western Europe make Ukraine an interesting option for producers looking to work with food importers from Eastern Europe.
IMPORT ENVIRONMENT
In recent years, Ukraine succeeded to shift its foreign trade from the vast markets of Russia to the ones in Asia, the EU, and Africa. In 2019, Ukraine’s imports in the agricultural sector reached $5.72 billion, while imports of consumer-oriented agricultural products calculated $2.94 billion.
Moreover, the retail climate in Ukraine is positive and increasingly competitive. Supermarket chains buy directly from food importers or wholesalers. More and more supermarket chains are providing private label branded products as sales in this area show growth.
NICHE PREMIUM GOODS – ORGANIC, HEALTHY FOOD POSSIBILITIES
Ukraine is also emerging as a major producer and exporter of a wide range of organic food, from cereals, berries, nuts, bee products, and oil crops, to processed food and grocery, to satisfy the increasing demand in Western Europe.
With health-conscious consumption as a new trend, the demand is rising for niche products of natural, vegetarian, vegan, gluten-free, lactose-free, and low sugar content products.
Although many consumers are particularly price-sensitive, some are ready to pay extra, as recorded in the significant growth in demand for high quality, healthy (organic), and higher-end food foodstuffs.
ONLINE OPPORTUNITY
The majority of Ukrainians prioritize a low price over the convenience of an online order. Although online retail is still in its infancy, as soon as there is a firm growth in the population`s disposable income, an increase in food sales through e-commerce is highly expected.
MARKET ENTRY STRATEGY
An efficient market entry strategy is establishing business connections with reliable local associates such as experienced Ukrainian food importers and distributors, for guidance on product positioning, branding, packaging, labeling, and custom clearance regulations.
Exporters should also examine the price sensitivity of their customers and be able to supply sufficient volume.
In terms of circulation, exporters should consider approaching large Ukrainian food retail chains as they have their own purchasing and importing divisions to handle food imports.
FORECAST
Ukraine’s border with Poland, Slovakia, Hungary, and Romania in the EU, as well as with Moldova and Belarus, grants vast opportunities for business and cross-border traffic.
Short and long term outlook for Ukraine`s food and drink market stays positive as consumption growth continues to persist over the next few years.
3 FOOD IMPORTERS FROM UKRAINE
- SantaVita
Address: Obchodní Zóna, K Třešňovce 1348, Revnice
Phone: +380 44 393 3481
Website: www.santavita.ua - Shop Greek Food – Greka
Address: Kyianivskyi Ln, 3-7, Office P17, Kyiv
Phone: +380 97 302 7997
Website: www.greka.com.ua - Stilton Trade
Address: Sidorenkovskaya, 3,Kharkovye
Phone: +380 67 573 8794
Website: www.stilton-trade.com
To get access to a list of more active food importers from Ukraine, you can access one of the BestFoodImporters databases.