Ukrainians' spending on groceries continues to grow - expert's opinion

21 February 2023, 09:42 | Economy
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In Ukraine, during the period of the COVID-19 pandemic, food spending indicators have increased markedly, and Russia's military aggression has posed difficult challenges for the domestic food market of our state.

This was stated by a senior researcher at the Department of Economics of Agricultural Production and International Integration of the National Scientific Center " Bohdan Dukhnytsky, commenting on updated statistics from the United States Department of Agriculture (USDA) on the cost of food at home around the world.

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The expert noted that if in 2019 every Ukrainian spent an average of $874 on food and non-alcoholic drinks, then in 2020 this figure increased to $964, and in 2021 it reached $1,242 per person.. In addition, the share of food expenditures in total expenditures for residents of Ukraine also increased.. In 2019, it was 39.7%, in 2020 - 41.2%, and in 2021 - 41.6%.

This trend is generally confirmed for 104 countries covered by the USDA statistical array, the expert noted..

Duchnitsky noted that the average share of spending on food per person in the world was 24.6% in 2019, 25.8% in 2020 and 25.5% in 2021.. According to him, this means that over the two years of the pandemic, it has increased by almost 1%..

He explained that the growth in absolute terms was more noticeable.. So, one inhabitant of the planet in 2019 bought an average of $1,387 worth of food, in 2020 - $1,428, and in 2021 - $1,686..

“Although the list of the studied countries includes quite different countries that are differentiated by the level of well-being and the impact of COVID-19 on their food market, however, an increase in costs is recorded both for economically developed countries and for low-income populations,” Dukhnitsky said..

Thus, for the United States, which took first place in the 2021 ranking, the share of food expenses increased from 6.2% in 2019 to 6.7% in 2021, and their actual value - from $2,357 to $3,070 per person.

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In the current USDA rating, at the end of 2021, Ukraine took 92nd place, located between Ethiopia (41.3% of food expenses, $ 245 / person. ) and Cambodia (42.7%, $546 a person), being among the countries where the percentage of spending on food is one of the highest, the scientist noted..

The full-scale military invasion of the Russian Federation in Ukraine posed extremely complex challenges for the domestic food market.

" According to the FAO Food Price Index, in 2022 its value was the highest on record (143.7 points), 14% higher than in 2021..



At the same time, the consumer price index for food and non-alcoholic beverages in Ukraine in 2022 amounted to 126.6%, that is, the price increase was actually twice as much..

Dukhnitsky noted that although there is no information on food spending for 2022 yet, according to the trends, further price growth should be expected with limited purchasing power of the population, so the share of spending on food in Ukraine will remain as high.

Earlier we wrote that some products may rise in price in Ukraine.




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