Confectionery industry of Ukraine (2000-2007)
 

The confectionery industry of Ukraine is one of the most important sectors of its food industry. Volume of confectionery industry production constitutes 3% of GDP. The share of Ukraine on the world market totals 1% (USD 93 bn). 

The productive capacity of the industry amounts to 1.5 mn tons. Ukrainian confectionery enterprises consume approximately 600 ths. tons of sugar per year. The national confectionery industry is represented by the companies of the State Foodstuff Department system: CJSC Ukrconditer (Ukrainian Confectioner), Ukrprodsoyuz (Ukrainian Foodstuffs Union), Ukrkhlib (Ukrainian Bread), and non-associated companies from the private sector. The Ukrconditer system embraces 28 factories, plants of foodstuffs, workshops, and public catering companies. The aggregate productive capacity of the 28 factories of the CJSC Ukrconditer system is roughly three-quarters of the confectionery output volume in Ukraine.

The total number of confectionery industry companies is steadily growing and constituted approximately 800 enterprises as of the beginning of 2007. Up to 90% of the companies deal with the production of flour confectionery and only 10% produce sugar confectionery (chocolate, boiled sweets, candies, panned sweets, etc.). The seven largest confectionery enterprises in Ukraine possess 4-26% of the market and produce up to 72% of the total production volume.

The market for confectionery articles is conditionally divided into three main segments: sugar confectionery, flour confectionery, and chocolates. Sugar confectionery (boiled sweets, panned sweets, and candies) is the most important segment. The flour confectionery segment (cookies, waffles, cakes, and biscuits) takes up to 38.6% of the total output, while chocolates have a 5.7% share. Practically all commodity groups in the confectionery industry are being expanded thanks to the development of new recipes by producers and manufacturing improvements.

The greatest expansion in product range over the years has been attributed to bar chocolate, due to the introduction of aerated and high quality thin bars; chocolates, because of developments in praline fillings; chocolate bars, especially waffles; rolls; biscuits including sponge-type cookies; glazed cookies; and filled cookies.

Seasonal production expansion trends and changes in assortment in each of the commodity groups as starting in August-September have been traced over a number of years.

Roshen, CJSC AVK, Lvov confectionery plant Svitoch, CJSC Kraft Foods Ukraine, and CJSC Production Association Kiev-Konti are the largest producers of confectionery articles in Ukraine. Analysts estimate that the local confectionery market has a capacity of about 1 mn tons per year.