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Research of Ukrainian gum market from Pro-Consulting analysts

Nowadays chewing gum market of Ukraine is quite promising: development indicators show steady growth, new players enter the market, expanding product line on the shelves in stores.

Domestic market of chewing gum is not fully developed yet, and there have been significant changes last five years. At the pre-crisis period the market was marked with a high level of monopolization by global industry leaders Wrigley and Dirol Cadbury, which held almost 80% of the market, whereas now more than 70% of the market products made in Turkey.

Import of chewing gum to Ukraine increases annually, except crisis period in 2009.  In 2012 imported products rate decreased slightly, reaching 4.9% in real terms.

One of the Ukrainian bubble gum market trends is an annual increase of Turkish import. While in 2007 it held a share less than 1%, and 90% of deliveries were carried out from Russia, for the past two years, the main suppliers of products to the domestic market were Turkish gum producers. In 2011, their share exceeded 55%, and in 2012 they have already occupied more than 70% of total imports in value terms.

 

Ukrainian market is characterized with gum price instability. In 2008, 2010 and 2012 there was a decrease in the market average price of imports and production of chewing gum. At the end of 2012 the average price of gum in Ukraine has decreased to 16.2%, which made $ 1.95 per 1 kg.

One of the bubble gum market features is a scarceness of domestic production. Whereas in 2009 there were two Ukrainian players (LLC "Yurmel" and LLC "Neptune"), in 2010-2012Ukraine has only  "Neptune" Odessa Enterprise.

In general, it should be emphisised that the domestic production of chewing gum in Ukraine is at a very low level. Ukrainian brands can not compete with the more promoted imported products.

Later it is expected to occure more new products at the market. The leading companies will compete for customers and continuously expand its product range, as the preferences of Ukrainian consumers are largely open to new varieties of gum.