Market report: Petfood exports increasing in Ukraine
Ukraine has positioned itself as the supplier of petfood for many Eastern European countries and will continue to expand its reach
In recent years, Ukraine has been actively developing the export of petfood to the markets of CIS (Commonwealth of Independent States) and Eastern Europe. Currently, about 10% of all petfood produced by local manufacturers are exported to other countries. This figure is projected to double until 2015 following the development of new export opportunities in the region. In 2012, Ukraine exported about 2,500 tons of petfood-a record number for the country. Ukraine currently supplies petfood to Russia, Belarus, Hungary, Moldova, Kazakhstan and Azerbaijan. Going into 2014 this list could grow to include markets in the Czech Republic, Slovakia and the Baltic States.
While growing their export business, Ukrainian petfood producers have also strengthened their position in the domestic market. The Ukraine petfood market is currently dominated by international groups such as Mars (Pedigree Petfoods, Royal Cannin, Nutro), which accounts for 70% of the market, and Nestle (Carnation, Spillers Petfoods, Ralston Purina), which holds 15% of the market. In the premium segment, about 50% of the market belongs to Royal Cannin (Mars), 30% to Hill's, 10% to Purina Pro Plan (Nestle) and 10% to local companies. The total share of the domestic Ukraine petfood market is estimated to be 80,000 tons in 2012, which is equivalent to about US$200 million. Domestic production is estimated at 17,000 tons.
According to official statistics, imports of petfood in Ukraine have been slowly but steadily declining since 2009. The internal market is growing by 7% per year, while the growth of the domestic production intended for sale inside the country is estimated at about 10% per year. Thus, Ukrainian producers are increasing their share on the domestic market. According to analysts, in coming years exports will continue to grow rapidly. According to the Kormoteh Company, one of the largest petfood manufacturers in Ukraine, the markets of Asia and Eastern Europe are very attractive for development, as they currently have a strong demand for petfood and could offer good prices for quality production.