‘There will be steps towards price increases’: industry expert predicts how much bread prices will rise in 2025

Bread prices will rise by 15-20% in 2025. In 2024, the cost of this popular product rose by 20%, according to Yuriy Duchenko, director of Kyiv Khleb LLC, as reported by Interfax-Ukraine.

He said that there is a tendency for prices to rise. Costs have increased for raw materials, flour, energy, and wages have also risen.

‘By the end of the year, I think there will be steps towards price increases. By the end of the year, it will be 15-20%,’ he said during the Hlib.ua conference in Kyiv.

The expert assessed the prospects and trends in the industry this year, noting an increase in demand for simple types of bread. There has been a decline in sales of wheat, bakery and pastry products. According to him, demand for more marginal products in tonnes is decreasing.

The expert cited the erosion of working capital in processing enterprises due to the reduced purchasing power of Ukrainians, low production profitability and energy dependence. He also mentioned the reasons for export restrictions and the shadow market, which has reached 40-50%.

‘It cannot be said that our market is completely in the shadow,’ Duchenko stressed.

He noted that this refers to work under a simplified taxation system and certain wage payment schemes. In this regard, products that are manufactured and sold at a price lower than 20% are serious competition in a market where there are about 4,000 manufacturers producing and selling the same goods.

Let us remind you that almost all products have risen in price in Ukraine, with some increasing by as much as 200%. Costs are rising significantly, and no effective solutions are expected.