WITHOUT LOSING PACE
Tendencies of Ukrainian market of flexible packaging
The development of the l exible packaging market corresponds to the European
tendencies in many respects. The growth of multilayered barrier i lms application,
reducing of packing materials thickness, the use of modern printing technologies
including the quality improvement of l exographic printing, matt or glossy
varnishing are among such tendencies. The high quality of l exible packaging of
Ukrainian enterprises allowed substantial reduction of i lms import. However
the level of l exible packaging consumption in Ukraine is much lower than in the
developed EU countries. Therefore one can say about high potential of Ukrainian
market and prospects of its growth in the future. Necessary conditions for positive
dynamics are the following – improvement of a general economic situation and
increase of population living standards. That will positively af ect purchasing
capacity of end users of the packed products.
ECONOMIC REALITIES …
The review of the Ukrainian cardboard and paper packaging market
Cardboard and paper packaging maintain leading positions in the Ukrainian
market. However, polymers make more and more competitive pressure upon
it. Following the results of 2010, the market capacity of cardboard packaging in
Ukraine was reduced concerning previous year to 6% (in physical terms to 508.3
thousand tons). Nevertheless, the indicator shows positive dynamics - average rate
of increase for last three years made up 8% in physical terms since 2011. The market
volume reached 641.9 thousand tons in 2013. Export of cardboard and paper
packaging from Ukraine got a positive gain in recent years. Following the results
of 2013, the export volume made up 89.15 thousand tons. It exceeds a previous
year indicator on 7 %. The import share in 2013 was insignii cant and reached 34.08
thousand tons. It is expected that market will be reduced not less than to 4% during
the current year because of political crisis.
ALL IS CORKED UP!
The market of closures in Ukraine
15 billion piece of various closures were produced in Ukraine In 2010. In the
next few years, the negative tendency of cutback in production was observed.
14.1 billion piece of various kind of closures were produced In 2013. Production
volume of metal closures was reduced because of stagnation in wines and liquors
industry. The share of metal closures production makes up 56%. Thus, the share of
import production in 2013 came to more than 50% that shows good potential for
development of the given industry in Ukraine. At total about 100 operators work
in Ukraine. At the same time, 12 operators hold about 80% of the whole market.
The i rst place belongs to limited liability company Retal-Dnipro with share of 18%.
The second place holds limited liability company Can-Pack Yavoriv (17.5 %). Limited
liability company Kronpak has the share of 7.3 % and limited liability company
Guala Closures Ukraine – 7 %.
PALETTE ON LITRES
The development of packaging market for varnish-and-paint
materials
One of key tendencies in Ukrainian market of paints is the transition to application
of water basis paint. Following the trend, many operators of the market go over
from metal packaging to polymeric. On the other hand, the use of tin containers
allows producers to position their products in various price segments, using a tin for
the premium-class goods. The arrival of transnational companies on the Ukrainian
market led to the competition tougher between brands. Packaging in the market of
paints becomes now important means that is used not only for goods storage, but
also as method of communications with consumers. Today producers of packaging
give more attention to its form and design
The tendencies of the market of fresh vegetables and fruits packaging
The Ukrainian market of fresh vegetables and fruits packaging develops at the expense of
transport and a multiple package segments. Up to 70% of large wholesale of vegetables
is on sale in 30-40-kg net bags. One can hardly see sales in bulk on the wholesale
market. Net bags made of polymeric thread are widely used for pre-packaging potatoes
and onions as an interior package as well. Corrugating packaging has practically driven
out wooden containers from the market of sensitive vegetables and fruits. However, the
interior package share in overall consumption is still insignificant. Manufacturers search
for optimum decisions about interior package wishing to follow the requirements of retail
network. Today cost is a determinative factor for choosing packaging. There are a lot of
offers of high-quality packaging with high marketing functions in the Ukrainian market
nowdays. However its high prices essentially limits its demand. Branding of packaging is
a trend of the world market. Up to now the Ukrainian market has a low share of branding
of packaging concerning packaging for fresh vegetables and fruits. However this share
gradually increases, showing a tendency of growth within last five years.
Multipack packaging as a vehicle for sales increasing
The competition between brands for shelves of retail shops grows constantly. This factor force
owners of brands to use packaging as a vehicle for sale increasing at the expense of side
benefits for the final buyer. Multipack packaging can make good service for this. The segment
of multiple packages has been constantly increased in Ukraine for the last few years. In some
cases multipack is successfully used in the capacity of promo-packaging (bonus pack, etc.). Every
year new decisions appear in the market these decisions allow to increase consumer properties
of packaging and its appearance. Manufacturers of beverages (especially beer) and also sour-
milk products (yoghourts) use multipack actively. Multiple package sphere of application promptly
extends.
The market of the Ukrainian packed products
The Ukrainian market of the packed products develops under the influence of global
trends. Especially active development occurs in a segment of foodstuff. The potential
of the domestic market of the packed foodstuff makes it attractive to investments. The
first places of Top-10 of the packed products Ukrainian market are occupied by essential
commodities groups of products - bakery goods, dairy products and fat-and-oil products.
The experts of Euromonitor International and VDMA predict market capacity growth in
all Top-10 groups of foodstuffs for the period till 2017. The highest growth will be in ice-
cream group – 35.5 %, confectionery products – 9.4 %, frozen foodstuff, processed food
products – 7.8 %. The market should provide a gain in 5.8 % as a whole. The volume of the
Ukrainian market of beverages should grow on 6.3 % till 2017 having reached capacities
in 7.808 million litres.
Tendencies of the Ukrainian packaging market
According to Euromonitor International and VDMA the segment of flexible polymeric packaging is
the leader on capacity among all segments of the packaging market – almost 24.8 million units
for 2013. The gain in this segment should make 1.9 % till 2017. During 2013-2017 all segments
of the packaging market will expect positive gain, except the segment of paper containers, where
experts predict decrease on 1.7 %. It is predicted that the greatest rates of increase exceeding the
rates of the market in whole will be due to the segments of cardboard packaging – 12 %, inflexible
polymeric packaging – 10.9 % and metal packaging – 4.3 %. The forecast of indicators for 2017 for
all Ukrainian market of packaging is the following: gain – 3.3 %, capacity – about 47 million units.
Import dominates the packaging machinery market. According to the Government committee of
statistics and VDMA the equipment import was up to €566 millions in 2008. The consumption
volumes of import technical equipment in Ukraine have not been restored yet, and by 2012 had
made only €341 millions.
