Russia
The Ukraine
coatings market
faces serious
consolidation
issues. There are
200 companies
operating in the
country, but the
top- 20 companies
produce 70
percent of all
coatings and are
steadily increasing
their share.
Ukraine Coatings Market Dries Up
as Economic Crisis Takes Toll
by Vladislav Vorotnikov
Russia Correspondent
The size of the Ukraine coatings market in natural volumes has collapsed from 302,100 tons in 2012 to 149,100 in
2015 and most likely will continue falling amid
sharp rise of prices and low purchasing prices of
the population, according to a recent study of
the country’s analytical agency Pro-Consulting.
Agency’s experts suggested that this is primarily connected with the decrease of the number of construction projects, while ordinary
citizens are no longer putting money into home
improvement. Market participants hope that
the market already hit bottom, since the sharp-est drop in sales of 35 percent on a year-to-year
comparison was observed in the first half of
2015, while after that paces of decline significantly reduced.
Pro-Consulting noted serious consolidation
tendency, as at the moment at the market there
are 200 companies operating, but the top- 20
companies produce 70 percent of all coatings
and are steadily increasing their share, with
some portion of the smaller players over the recent two years had to leave market.
In terms of import, according to Pro-Consulting, Ukraine currently purchases coatings from 30 countries around the world,
but most of the deliveries are from Europe.
Depending on the different segments its share
accounts for 70-92 percent in overall structure
of import. However, the amount of orders for
purchasing of coatings from abroad has sig-
nificantly reduced since the time of the crisis.
Sergei Khomenko, CEO of the Ukrainian
Paint and Coatings Association (UPCA) has
a quite similar vision of the situation. He has
indicated that at the moment Ukraine coat-
ings producers met domestic demand by al-
most fully, but still have to operate only at 50
A large part of Ukraine coating producers have switched to cheaper raw materials.
