Ukrainian consumer sentiment shifts amid war and instability

Business

13 March 2025, 12:45 PM

War and economic instability are reshaping consumer sentiment in Ukraine.

Despite wartime challenges, Ukrainians remain resilient in their spending habits, shifting from frequent purchases to higher spending per transaction, particularly on food and medicine, according to Deloitte Ukraine’s fifth annual consumer behavior study.

Spending Shifts and Consumer Priorities

  • Less frequent shopping, higher spending: While overall spending has decreased across most categories, 37% of respondents increased expenditures on food and medicine. The largest spending reductions were in children’s goods (39%) and building materials (48%).
  • Generational differences: Younger consumers (18–27) are cutting back less on food (56%), cosmetics (51%), and entertainment (57%), while Kyiv residents are spending more on leisure compared to 2023.
  • Support for social responsibility: 62% of respondents avoid companies that remain in the Russian market, with Kyiv residents and those over 58 being the most committed to this stance. Additionally, 55% prioritize businesses that support Ukraine’s armed forces, with 28% willing to pay significantly higher prices for such goods.

Donations and Online vs. Offline Shopping

  • Charitable giving remains strong: 89% of Ukrainians continue to donate to military and humanitarian causes, though trust in personal fundraising networks has declined.
  • Traditional shopping dominates: Despite growing e-commerce, 72% of Ukrainians still prefer in-store shopping for food, while online sales are highest for electronics (17%) and cosmetics (15%).
  • Postal services remain essential: 94% of Ukrainians use postal services, with reliability (88%) and price (81%) as key factors.

AI and Tech Adoption

  • Emerging AI usage: 36% of respondents actively use AI, particularly in telecom and technical support. While AI adoption in healthcare remains low, digital innovations are spreading evenly across regions.

Budget Distribution and International Comparison

  • Essential expenses dominate: Ukrainians allocate 77% of their budget to necessities like housing, food, healthcare, and transport, compared to 46% in Poland and 51% in Germany. Only 3% goes to leisure, far below Europe’s 15–20% average.

Deloitte’s findings reflect how Ukrainians are adapting their spending while maintaining strong social and economic priorities amid ongoing conflict.

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