Business news from Ukraine

Business news from Ukraine

Why juice production is profitable investment: analysis of market trends and opportunities

Today, consumers around the world, and in Ukraine in particular, are increasingly choosing natural products that are associated with a healthy lifestyle. Juices, as one of the key segments of the beverage market, not only meet this trend, but also demonstrate a steady increase in demand. For businessmen looking for profitable areas for investment, juice production offers attractive prospects: a relatively low entry threshold, quick payback, and significant potential for scaling. In this article, we will analyze global and Ukrainian market trends, provide key figures and facts, and explain why it is worth paying attention to this industry right now.

Global juice market: figures and trends

The global juice market remains one of the most dynamic segments in the beverage industry. According to the analytical company Statista, in 2024, its volume reached about $18.5 billion, maintaining a stable annual growth rate of 5-7%. Forecasts for 2025 indicate a further increase in the market to $20 billion, driven by growing demand for natural products and innovative approaches to production.

Key global trends:

  • Demand for naturalness: Consumers prefer juices without added sugar, preservatives and artificial flavors. According to Euromonitor International, in 2024 the share of organic juices increased by 10% compared to 2022, which confirms the strengthening of this trend.
  • Competition with other beverages: In some regions, juice consumption has stabilized due to the popularity of functional drinks and premium teas, but the premium juice segment continues to grow, offsetting the decline in the mass market.
  • Production leaders: Brazil maintains its position as the world’s leading juice exporter, shipping 2.8 million tons in 2024, mostly orange concentrate. EU countries, in particular Spain (1.3 million tons) and the Netherlands (1.0 million tons), are also increasing their shares due to the active development of fruit processing.

Large players such as Tropicana (PepsiCo), Minute Maid (Coca-Cola), and Innocent Drinks dominate the mass segment, while local brands with organic, cold-pressed, and functional juices are winning the premium market.

Ukrainian juice market: untapped potential

The Ukrainian juice market has unique features that make it attractive to investors. According to the Ukrainian Agribusiness Association, the average per capita consumption of juice is only 10 liters per year. For comparison, this figure reaches 30 liters in the EU and 50 liters in the US. This means that the Ukrainian market is far from being saturated and has a huge room for growth.

Key characteristics:

  • Dominance of local brands: More than 95% of juices on the shelves of Ukrainian stores are made by domestic producers. The trend of supporting local businesses, which intensified after 2014, continues to gain momentum in 2024, reflecting strong consumer loyalty to local brands.
  • Export potential: Ukraine is among the top 20 global juice exporters. In 2022, the country exported 127 thousand tons of juices, mainly apple concentrate, mainly to the EU and the US.
  • Recovery from the crisis: The 2020 pandemic reduced juice production by 14.8%, but in 2021 the industry began to recover, and in 2022 sales grew by 21% in monetary terms. Further growth is expected in 2024, especially among small and medium-sized producers.

Market leaders:

  • “Nash Juice: Remains one of the leading brands, offering affordable products for the mass consumer. The exact market share in 2024 may differ from 22.1% (2022 data), but the brand maintains a strong position.
  • Jaffa: Known for quality juices in glass containers, popular both in Ukraine and abroad.
  • Galicia: Continues to occupy the niche of organic direct-pressed juices, strengthening its position in the premium segment due to the demand for natural products.
  • Sandora: Until 2022, it was the leader, but temporarily stopped production due to the war, which opened up opportunities for competitors. In 2024, the company is actively working to regain its market position, although its share is likely to have decreased due to competition.
  • New players: Brands such as Ecosphere are showing significant growth (e.g., +155% in 2022) and continue to gain momentum in 2024, filling the gaps left by the big players.

Financial analysis of juice production: why is it profitable?

Juice production in Ukraine is not only a response to trends, but also an economically sound business. Here are the key arguments:

  • Affordable start: A small semi-automatic juice production line (with a capacity of 1,000 liters per day) requires investments of $50,000-80,000, including equipment and raw materials. For comparison, starting a dairy plant costs at least $200,000. Of course, we are talking about production facilities, if you already have a prepared site for production.
  • Fast payback: With a production volume of 30,000 liters per month, you can earn up to $0.5-1.5 per liter, depending on the type of raw materials and prices. The initial investment in the production facility itself can be repaid in a few months if you have already built sales channels. And under good conditions, the business can pay off in a few quarters. This is much faster than most other food businesses.
  • Raw material base: Ukraine is one of the largest apple producers in Europe (1.2 million tons in 2022), which provides low cost of raw materials for apple juice.
  • Export prospects: Apple concentrate is already competitive on the global market, and the demand for direct-pressed juices in the EU is growing by 6-8% annually.

It is worth clarifying that the payback period of several months primarily refers to the workshop itself, not the business as a whole. This figure takes into account only the costs of equipment and raw materials at maximum line utilization. However, a full-fledged business includes additional costs: salaries for accountants, sales managers, logisticians, and warehouse workers, as well as rent, taxes, and marketing. If you already have well-established sales and supply channels, the payback period may be closer to these terms. However, in real-world conditions, where there are no ideal scenarios, you should focus on a more realistic timeframe of about 6-12 months. That’s how long it usually takes for juice production to start generating stable profits, depending on external factors and the efficiency of your business model.

These simple calculations demonstrate that launching juice production is not only an opportunity to occupy a profitable niche in the market, but also to ensure a quick return on investment. Investing in modern equipment allows you to reduce production costs and increase profit margins, which is especially important in a highly competitive environment.

Minimum set of equipment for juice production

To organize a full-fledged production process, it is necessary to equip the workshop with a line that includes a number of specialized machines and devices. Using the equipment listed below, you can achieve a capacity of up to 30,000 liters per month, which is ideal for medium-sized businesses with the prospect of scaling up:

  • Juice presses
  • Ensure efficient extraction of liquids from fruits and berries, preserving the maximum amount of nutrients. We recommend choosing the STvega J H30 Cold Press Juicer – this model with a pressing force of 30 tons guarantees a high juice yield even from hard fruits, preserving all the nutrients thanks to cold pressing technology.

Industrial juicers

Designed for processing large volumes of raw materials, which makes them indispensable in large-scale production. Particularly noteworthy is the STvega J 1500 masticating juicer. Its high productivity and squeezing efficiency allow you to optimize the production process and ensure high quality of the final product.

  • Filters.
  • Filters purify juice from unwanted solid particles, improving its taste and organoleptic characteristics. We recommend paying attention to the STvega SH 1000 Shock Filter for juice purification – this model has a capacity of up to 1000 liters per hour and removes the smallest particles, ensuring crystal clear juice.
  • Pasteurizers
  • Pasteurizers ensure the preservation of the product’s beneficial properties and extend its shelf life by destroying microorganisms. It is worth considering the STvega Pasteurizer H1000 – this model has a 1000-liter tank and preserves all the beneficial properties of the product due to precise temperature control.
  • Automatic filling lines
  • Automatic filling lines guarantee accurate dosing and hermetic packaging, which is important for maintaining product freshness and safety. We offer you to familiarize yourself with the Bag-in-Box STvega Automatic BIB Filling Machine H250 – this model provides filling accuracy of ±0.5% and a productivity of up to 250 bags per hour, optimizing the packaging process for medium and large volumes.

The approximate cost of this line can be around $50-80 thousand, while it can generate $10-20 thousand in gross revenue per month after reaching a volume of 500-1000 liters of juice per day.

But you can start with much smaller investments. Some of the operations can be done manually with the help of human resources, and then you can use only the most necessary equipment, such as a juicer, filters, and pasteurizers. In this case, you can start with 5-10 thousand dollars and test your idea.

Where to buy juice production equipment?

When choosing a supplier of equipment, it is important to consider not only the quality of the equipment, but also the level of service support, warranty service, and technical support. STvega is one of the market leaders specializing in the sale of modern equipment for the food industry.

Why choose STvega:

Wide range of products: We offer equipment from China, Europe and Ukraine, which allows you to choose the best solution for any business.

Warranty and post-warranty service: The company’s specialists provide full support and technical assistance at all stages of operation.

Competitive prices: High quality at affordable investment terms makes the purchase as profitable as possible.

Individual approach: Consultations on the selection of equipment for your budget and needs.

By investing in a production line from STvega, you get not only modern equipment, but also a partner who will help you grow your business and quickly achieve your goals.

Conclusion.

Today, investors are looking for opportunities that combine stability and high income potential. One of the most promising ways is to invest in your own production – your business. This is not just a reliable investment, but also a chance to create something real: a product that will be in demand, generate profit and allow you to control every stage of development. This approach provides not only financial return, but also long-term value, because you are building a business that works for you and meets modern market trends.

If you want to know more or get advice on the selection of equipment, please contact our specialists. For example, our company STvega has good experience in supplying equipment for juice production. We will help you make an informed choice, calculate the cost and lay a solid foundation for a successful start of your business.

Juice production is a business with a clear model that fits perfectly into the current trends of healthy eating and support for local producers. The global market is showing steady growth, and Ukraine has all the conditions for rapid development: from cheap raw materials to export opportunities. By investing in this segment today, you can not only make a quick profit, but also gain a foothold in an industry that promises to remain relevant for decades. It’s time to act – the market is waiting for new players!

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“Lemtrans” tripled its investments in 2024

In 2024, Lemtrans, Ukraine’s largest private rail transportation operator, increased its investments by 2.9 times compared to 2023 to UAH 478 million, while total transportation volume decreased by 6% to 15.9 million tons.

“Lemtrans continues to work to ensure the logistics and economic stability of Ukraine by supplying critical raw materials and investing in new infrastructure projects… In 2024, the group allocated more than UAH 478 million for infrastructure and logistics projects, which is three times higher than in 2023, when investments amounted to more than UAH 160 million,” Lemtrans’ press service said on Tuesday.

The company has invested in the development of terminals and container business, allocating UAH 441 million in this area, the statement said.

In the second half of 2023, the construction of a modern container terminal in Vinnytsia was completed. Lemtrans also continued to implement an investment program aimed at maintaining the railcar fleet and further improving the efficiency of railcar repair facilities. The volume of scheduled and current repairs of freight cars in 2024 reached 5,635 units.

Lemtrans’ total transportation volume in 2024 amounted to 15.9 million tons, which is 6% less than in 2023, the press service reported.

Coal accounted for the bulk of transportation – 10.9 million tons. Iron ore was the second largest (2.3 million tons). In addition, the company transported 2.01 million tons of construction materials and 0.6 million tons of other cargo in 2024, the report said.

“Starting from the third quarter, coal transportation decreased due to the massive attacks by Russia on Ukraine’s energy infrastructure. Damage to production assets led to a reduction in transportation volumes by shippers,” the company’s press service explained.

Based on the results of their activities in 2024, the companies that are part of the Lemtrans group transferred more than UAH 712 million in taxes and fees to the budgets of all levels. This is 30% less than in 2023, when UAH 929 million was paid.

“In 2024, Lemtrans transferred about UAH 647 million to the state budget. Local budgets were replenished by UAH 66 million. In addition, Lemtrans Group paid more than UAH 59 million in unified social tax, the press service said.

“Despite the challenges of wartime, we continue to invest in infrastructure projects… The container terminal in Vinnytsia expands the access of Ukrainian enterprises to world markets, contributing to the growth of export-import operations and strengthening the economic potential of both the region and the country as a whole. This is especially important in the current environment, when economic sustainability is a key factor for Ukraine,” Lemtrans CEO Volodymyr Mezentsev said, as quoted by the press service.

Earlier it was reported that Yegor Grebennikov, co-owner of the port operator Transinvestservice (TIS), will become a co-owner of the Mostyska Dry Port project in Vinnytsia, which Lemtrans is implementing jointly with Rail Investment. The relevant permission was granted by the Antimonopoly Committee.

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EU calls for mobilization of private investment in areas critical to Ukraine’s recovery

At the first “EU-Ukraine Investment Conference” in Warsaw on Wednesday, the European Union called for mobilizing private investment in areas critical to Ukraine’s recovery, the European Commission (EC) said.
“Under this call, EU businesses, including joint ventures or consortia involving both European and Ukrainian companies, are invited to submit proposals by March 1, 2025. Proposals will be reviewed and linked to the most suitable investment projects financed by the Investment Framework for Ukraine, which is an integral part of the EU’s EUR 50 billion Ukraine Fund,” the EC communiqué says.
“Ukraine’s recovery requires both public funding and partnerships with the private sector. By combining these efforts, we can maximize investment, support the country’s recovery and its gradual integration into the EU single market. Indeed, facilitating private sector participation in Ukraine’s recovery and reconstruction will be key to its success,” said Oliver Vargey, European Commissioner for Neighborhood and Enlargement Policy.
The European Commission named the priority areas of the EU’s call: development of sustainable energy solutions, including renewable energy projects and modernization of existing energy infrastructure; investment in processing of critical raw materials – key minerals and resources needed for high-tech industries and renewable energy technologies; revitalization and modernization of the manufacturing and production sector to increase industrial competitiveness; support for construction and reconstruction of Ukraine; and support for the development of the energy sector.
The two-day conference, according to the EC, brought together more than 5,000 participants, including companies, banks and investors from Ukraine, the EU and other countries, to mobilize private investment in the recovery, reconstruction and modernization of Ukraine.

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BlackRock predicts insurers will focus on investing in private markets, clean energy and innovation

Insurers in 2024 will focus on increasing investment in private markets, clean energy infrastructure and innovative technologies. According to the Reinsurance News website, this is according to the 13th annual Global Insurance Report by asset management company BlackRock.
For the third consecutive year, the report found that the majority of insurers plan to increase private market allocations, with 91% of respondents indicating they will do so in the next two years.
That figure reaches 96% for insurers in Asia Pacific and North America. The report is based on information from 410 insurance investors in 32 markets managing approximately $27 trillion in assets.
“With 2024 expected to be a landmark election year, insurers are increasingly concerned about how political uncertainty could impact macroeconomic risks, citing regulatory changes (68%) and rising geopolitical tensions and fragmentation (61%) as top concerns,” the report notes.
In addition, market risks such as interest rate volatility (69%) and liquidity problems (52%) were identified as critical.
Despite these challenges, 74% of insurers have no plans to change their current risk profiles. Many insurers cited the value of partnerships in improving their internal expertise for risk assessment and portfolio management, with 40% of respondents emphasizing that an investment partner that understands both their insurance business and operating model is critical to achieving their strategic goals.
In the public markets, 42% of insurers plan to increase investments in government and agency bonds, while 33% focus on inflation-linked bonds, as 46% view inflation as a significant macroeconomic risk. In addition, 44% of insurers are looking to increase their holdings in cash and short-term instruments to maintain liquidity.

 

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Foreign investment in China in January-April fell by nearly 30%

Foreign direct investment (FDI) in mainland China’s economy in January-April fell 27.9% year-on-year to 360.2 billion yuan ($49.7 billion), according to the country’s Ministry of Commerce.

That included 58.5 billion yuan in FDI last month, the lowest since November. The figure fell 36% year-over-year and 32% month-over-month.

In January-April, about 12.7% of total investment was in the PRC’s high-tech sector.

As reported, FDI in 2023 fell 8% to 1.13 trillion yuan.
Experts Club Analytical Center and Maxim Urakin released a video analysis of how the GDP of the world’s countries has changed in recent years, more video analysis is available here – https://youtu.be/w5fF_GYyrIc?si=BsZmIUERHSBJrO_3.

Subscribe to Experts Club YouTube channel here – https://www.youtube.com/@ExpertsClub

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Ukraine wants to attract private investors to lend to investment projects in ports

The state intends to attract private investors to lend to projects for the repair, modernization, reconstruction, and construction of strategic port infrastructure facilities in Ukraine with the possibility of compensation for the funds spent through port dues.

The relevant provisions are contained in the draft resolution of the Cabinet of Ministers “Some issues of compensation for investments made by business entities in strategic port infrastructure facilities that are state-owned”, the text of which is posted on the website of the Ministry of Community Development, Territories and Infrastructure (Ministry of Health) for discussion.

The document provides for the approval of the procedure and conditions for concluding agreements on the basis of which investments made by business entities in strategic port infrastructure facilities are compensated, as well as amendments to the Cabinet of Ministers Resolution No. 899 of October 3, 2012, according to which public sector entities may make expenditures on capital investments, in particular on port infrastructure facilities, in the absence of an approved financial plan.

It is noted that the amount of investment compensation should not exceed the amount of funds actually paid by the investor to finance the design or construction of port infrastructure facilities.

In addition, it is noted that the investor may be a legal entity or an individual entrepreneur. There may be several investors at one facility.

At the same time, the new procedure will not apply to legal relations involving business entities that make private investments in port infrastructure facilities on the basis of agreements concluded under public-private partnerships, including concession agreements and lease agreements for state property.

The Ministry of Reconstruction expects that the adoption of this resolution will help restore strategic port infrastructure facilities, accelerate the growth of maritime transport, improve the competitiveness of seaports and increase their investment attractiveness.

“Due to the military aggression of the Russian Federation against Ukraine, there is a problem of insufficient funding for the maritime industry, in particular due to imperfect fiscal policy, which leads to a lack of funds at the state-owned enterprise Ukrainian Sea Ports Authority (USPA),” the explanatory note to the draft resolution says.

It is noted that the USPA has entered into contracts for a number of construction projects, but “due to lack of funds and the state’s dividend policy, it is not possible to implement even part of these projects.”

At the same time, the USPA is facing an acute issue of the need to reconstruct and maintain port infrastructure, including berthing facilities. As of February 24, 2022, the state-owned enterprise had 265 berths (cargo, auxiliary, passenger) located in 13 seaports of Ukraine. Of this number, 20 are unsuitable for normal operation, 37 require significant investment in the next five years, and more than 50 operate with low economic efficiency – they need to be restored through overhaul or reconstruction.

In addition, it is indicated that, according to preliminary calculations, in the period before the full-scale invasion, the need for USPA to finance projects for the reconstruction, modernization and construction of berths alone (more than 48 projects, of which 36 are for reconstruction and modernization) was estimated at UAH 12 billion over four years.

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