Good rise: analytical review of the package market of Ukraine

For the last year, Ukrainian polyethylene and paper package market has demonstrated a rise in volume terms by 8 and 3 percent correspondently. The situation has been affected by three factor groups. The first group refers to growth of production facilities of certain manufacturers, appearance of new players on the market, cost and product price increase as well as the expansion of the products range.

The second factor group includes tendencies in foreign trading, namely, the increase of import prices (due to hryvna devaluation), as well as a minor growth of the cost price in comparison with other countries.

And finally, availability of purchasing power of the population both in household segment (packages to pack the products), and in segment of industrial goods packaging refers to the third group of tendencies in consumption.

Besides, in 2016 the majority of branches – the package consumers - demonstrated positive dynamics that also influenced on development of the studied market.

Thus, it is possible to make a conclusion that the increase of industrial production of goods packed in paper packages, increase of demand on household packages, presence of eco-trend and use of paper packages instead of polyethylene, appearance of cheaper production technologies influencing on package popularity as well as the change of prices for raw materials (in case with polyethylene packages - it is oil, for paper packages, cellulose and waste paper is used) are the key factors of the package market development in Ukraine.

Key specific feature of the market is a dependence of the retail goods turnover and real profit of the people in household segment. As it was mentioned before, a considerable rise of demand, appearance of new players and economy stabilization enabled the polyethylene package market to get increased by 8% in 2016.

In addition to this, it should be mentioned that in 2016 there was also observed a considerable rise in money expression due to significant increase of average product prices in the studied segment.

In general, the development of the package market of Ukraine is characterized by series of peculiarities, namely, increase of prices for energy resources, seasonality and change of raw materials’ cost, as well as increase of profitability due to general economic upturn.