Bread products up in price by 20% last year, to add another 15-20% in 2025 – director of Kyivkhlib

Baked products will continue to rise in price in 2025, if in 2024 they added 20% in price, then in 2025 the growth will be another 15-20%, said director of Kyivkhlib LLC Yuriy Duchenko.

"For 2025 we see a tendency for product prices to rise. This is understandable, because costs have increased, primarily for raw materials, i.e. flour, for energy sources, wages have increased. By the end of the year, I think, there will be steps towards price increases. By the end of the year, it [the increase in price] will be 15-20%," he said during the Khlib.ua conference in Kyiv on Thursday.

Duchenko emphasized that currently most bakers are working at the margin of profitability, and some are even in the red.

Evaluating the prospects and trends of the industry in 2025, the director of Kyivkhlib noted an increase in demand for breads with simple recipes in tonnes. At the same time, there is a decline in sales of wheat, bakery and butter products. That is, according to him, the demand for more marginal products in tonnes is decreasing.

Among the main problems of the industry, the expert named the leaching of working capital from processing enterprises due to low profitability of production, energy dependence, reduced purchasing power of Ukrainians, logistical difficulties, export restrictions and market shadowing, which reached 40-50%.

"It cannot be said that our market is completely in the shadows. We are talking about work under a simplified taxation system, about some schemes in labor remuneration. Therefore, a product that is produced and sold at prices lower than 20% is serious competition in a market where about 4,000 manufacturers work, who produce and sell the same product that costs money, and for which the buyer votes with his wallet. There is very high competition among manufacturers," Duchenko emphasized.

According to the director of Kyivkhlib, the automation of industrial production, the use of innovative technologies, in particular artificial intelligence, changing sales channels, the development of fast food and street food, franchising schemes, and an emphasis on fresh, healthy bread will help resolve the situation.