UKRAINIAN CONCRETE MARKET OF CONCRETE: 2017 AND FORECAST 2020
2018-04-24 16:06:16Kiev, August 21, 2017: According to the results of the comprehensive analytical study "The market of concrete in Ukraine: 2017 and the forecast for development to 2020", conducted by PAU in 2017, the volume of the Ukrainian concrete market in 2016 amounted to 16 million tons. In 2017, the volume market, according to the average scenario, can reach a mark of at least 17 million tons. In general, the concrete market, after the fall in 2014, demonstrates a dynamic growth rate. On average, the increase in recent years is 20-30%. The capacity of the Ukrainian concrete market today is estimated at 6 billion UAH. without VAT. The market is represented by the main product segments: ready-mixed ready-mixed concrete and mortar.
The main driver of the development of the concrete market is investment and construction activity in the domestic market of Ukraine. PAU analysts identified the most probable scenario, which is characterized by a small growth rate of the market due to the restoration of construction activity and low level of implementation of state targeted programs. According to this scenario, the volume of concrete consumption in Ukraine by 2020 will be 20 million tons.
The competition in the concrete market of Ukraine is uneven and has local features. For example, in Kiev and cities with a population of less than 1 million people. the market is characterized by a high level of concentration, bordering on the monopolization of the market by the leader company. At the same time, in the cities with a million population, a competitive oligopolistic structure has developed, when 3-4 large operators compete among themselves, forming a market price for concrete, which makes it possible to talk about a healthy business environment.
The prevailing market trends are as follows:
- Integration of business (creation of holdings, vertically integrated structures, networks);
- Development of service and offers for a professional customer and a private builder;
- Development of dealer networks;
- Expanding the practice of using tools of digital marketing in the promotion of products and services;
- Cost optimization in production and logistics;
- Development of adjacent, highly profitable segments - paving slabs and decorative concrete bricks;
- Large operators have increased their market share due to weak players in 2014-2015.
According to PAU brokerage, investors mainly use the strategy of purchasing production assets to expand their own production network or build a vertically integrated structure. Recall, for the period 2014-2015. In the industry, about 13% of concrete enterprises were closed or remained on the uncontrolled territory of Ukraine.
Today in Ukraine there are more than 550 enterprises producing commercial concrete and ready-mixed solutions. At the same time TOP100 accounts for more than 90% of the total production, and to the segment of large and medium-sized it is possible to include about 250 enterprises.
Reference: Information Analytical Agency Personal Analytical Unit was founded in 2005. IAAPAU specializes in providing information and analytical services and is the leading Ukrainian operator in the field of marketing services in industrial markets and business brokerage in the market of building materials and technologies. Within the framework of the special Construction Market Agency, the complex of services for construction industry companies