In 2025, the cost of food in Ukraine continues to rise, gradually approaching prices in European and global countries. Ukrainians are forced to spend a significantly larger portion of their income on food than residents of European countries.
This is reported by Finway
Reasons for the Increase in Food Prices in Ukraine
According to Oleg Pendzin, an expert from the “Economic Discussion Club”, the situation with food pricing in Ukraine is complicated by a number of factors. One of the main reasons he cites is the high value-added tax (VAT), which is 20% in Ukraine. In comparison, in European countries, this tax for food products typically ranges from only 4-5%. As a result, Ukrainians have to pay more for food than many Europeans.
Additionally, European states actively support their farmers: up to 70% of a European farmer’s income is made up of government subsidies. Thanks to these subsidies, food becomes more affordable for consumers, as the government compensates part of the costs.
Food Expenditures: Ukraine vs. Europe
Experts note that a Ukrainian family spends about 40% of its household budget on food. In comparison, in Europe, these figures are significantly lower — 12-18%. This difference is due to both the relatively low income levels in Ukraine and the consistently high prices for food.
“According to a study at the beginning of the year, 46% of Ukrainians confirmed that they started looking for cheaper, lower-quality products to make ends meet,” Pendzin emphasized.
The decrease in household income has forced even middle-class representatives, who previously did not economize on food, to pay attention to cheaper products. This has led to a significant increase in demand for budget food items among both low-income and middle-class consumers. As a result, prices for inexpensive products are rising faster than for premium ones, although the overall increase is about 20%.
In the face of rising food prices, most Ukrainians are looking for ways to save: 75% of consumers regularly buy discounted items and are willing to switch stores for better prices.