Structure and dynamics of the paint and coating materials market in Ukraine

Abstract

Background. Paint and coating materials (hereinafter PCMs) occupy an important place among the household chemical goods on the consumer market of Ukraineas well as in the structure of chemical products. PCMs output and consumption dynamism, presence of a significant number of producers makes it difficult to assess the market for this product, analyse it, and track trends. The Ukrainian PCMs market constitutes 0.5–0.6 % of the world market, but greatly depends on the trends on it.
The aim of the article is to analyse the structure and dynamics of PCMs market in Ukraine.
Material and methods. The object of research is the structure and value of output, export, import and consumption of various PCMs types in Ukraine.
General scientific and special methods of knowledge of economic processes are applied: analysis and synthesis, system approach, comparison and generalization.
The information base of the study is official data of the State Statistics Service of Ukraine, the State Fiscal Service of Ukraine, Ukrainian Paint and Coatings Association (UPCA).
Results. According to the official data of the State Statistics Service of Ukraine the value of PCMs production have grown in Ukraine in 2017 by 3.6 % compared with 2016 and by 9.2 % compared with 2015, but is less by 14.6 % than in 2013. It is shown that the data of official statistics of PCMs production in Ukraine is underestimated by 4.4–11.0 % compared to the UPCA data. The share of environmental friendly water-dispersible PCMs (WD PCMs) in the structure of PCMs production has increased from 35 to 43 % in Ukraine during the last 5 years. The positive dynamics of PCMs export and import in 2016–2017 has been identified. However, the volume of PCMs export is 3.8–6.7 times lower than import.
The volume of PCMs consumption has grown by almost 22 % in Ukraine in the last 2 years. There were positive changes in the structure of PCMs consumption due to the growth of the share of environmental WD PCMs by 7 % to 42 %. At the same time, the share of solvent born PCMs (SB PCMs) decreased by 9 %. For the first time in the history of research, the consumption of WD PCMs exceeded the SB PCMs in 2015. It is necessary to introduce a Technical Regulation on limiting of VOCs in PCMs in order to further increase volumes and the share of consumption of WD PCMs. The draft of this law document TC 168 Coatings and paints has already been developed. The share of domestic origin PCMs in the overall structure of consumption in 2013–2017 was 81–89 %.
Conclusion. Domestic paint and coatings industry is one of the few that provides more than 80 % the domestic market PCMs of its own production. Taking into account Ukraine's dependence on imports of oil and petroleum products and the steady growth of prices for them, it is relevant to reduce production volumes by domestic enterprises of the SB PCMs and increase the production of WD PCMs. The volume of production and sale of PCMs will continue to be negatively affected by the cost of imported raw materials, which in the last 3–4 years has increased almost 3 times due to the national currency devaluation. The cost of imported raw materials also contributed to a significant increase in the price of domestic PCMs. In these conditions, it is especially important for Ukrainian producers to use domestic mineral raw materials in the WD PCMs. Further research of the structure of production and consumption of PCMs in Ukraine by purpose is necessary.