In Ukraine, the massively closed the bakery

Bakeries are closing because of the underground market of bread.

Of the 400 enterprises producing bakery products, and about 400 mini-bakeries for the last two years has closed about 150 enterprises.

This is reported by experts of Pro-Consulting.

Today in Ukraine there are mostly mini-bakeries with incomplete production cycle, but lately has started to appear and the bakery of a full cycle.

Every year in Ukraine produced more than 1.1 million tonnes of bread and bakery products, and more than 0.11 million tons of confectionery products and cakes. The potential market capacity is about 3.5-3.7 million tons of bakery products per year.

The main reason for this decline is not a decline in demand for products and market presence of a large shadow segment ― sales of bread and bakery products through natural persons-entrepreneurs, which is not conducted. According to analytical data, approximately 40-60% of production in the country is “in the shadows”. More than 50% of domestic production of bread and bakery products accounted for 6 major companies.

More than 90% of the market of bread and bakery products in Ukraine is produced by national manufacturer.

Production of social kinds of bread is about 80% of the total production, premium grade is only 5%, functional – 3%.

The most popular types of baked goods are cheesecakes, scones and cakes, which occupy about 37% of the total volume of the market. It is also worth noting the trend towards increasing the share of more expensive bread types.

© 2017, paradox. All rights reserved.