ANALYSIS OF THE UKRAINIAN MINERAL WATER MARKET IN 2016

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Mineral waters are a godsend for medicine, which, although not a substitute for a full treatment, contributes to recovery and recovery of the body.

But according to UNICEF, more than 660 million people in the world use water that is hazardous to life (drinking and domestic). In 2015, as part of the UNICEF program, American photographer Ashley Gilbertson conducted a study demonstrating how much water is consumed per day by one person in different countries of the world, but no emphasis was placed on the quality of water (the best quality water was that consumed by the photographer’s family):

Mineral water market in Ukraine

Ukrainian mineral water market: Ukrainian riches

The oldest mineral water

The territory of Ukraine is rich in sources of mineral waters – their number reaches five hundred pieces. At the same time 80 of them use 50 resorts, 20 balneo-hospitals, 40 plants of therapeutic table waters.

Mineral waters in Ukraine

The total volume of Ukrainian mineral water reserves reaches 2,500,000 cubic kilometers. Consumption is growing rapidly (on average by 7% per year), so extraction and production are increasing, and the market is developing and replenished with new brands.

Control of enterprises in Poland

Demand is influenced by factors such as:

  • the fashion for a healthy lifestyle;
  • environmental situation (use of chemicals that get into water bodies and water intake stations, droughts);
  • increasing advertising budgets;
  • increasing capacity and entry of regional producers into the national market.

And due to the fact that the mineral water market is rapidly growing, there are one-day firms that under the guise of branded brands produce fakes with low quality, thus discrediting the well-known brands.

Producers of mineral water in Ukraine

Artesian water production in the country increased by almost 6% in 2016, compared to 2015, to 76,000 dal.

Mineral water market in Ukraine

The investment market of minwaters used to be of interest only to Ukrainian investors, but due to the growing culture of food consumption, including drinking water, an influx of foreign investments is expected, as well as improvement of the material and technical base of domestic production facilities. Fashion and the desire to lead a healthy lifestyle have increased the demand for non-carbonated water, so almost all producers have included it in their assortment: the ratio of table carbonated and non-carbonated waters is 91% and 9%.

Mineral water market: main producers

Producers of mineral water in Ukraine:

Producers of minvods

Ukrainian mineral water market in 2016: imports and exports

Mineral water exports grew in 2015 by 26% to 6.1 million dal, but in monetary terms this was not noticeable – revenue amounted to almost $2 million and this was 13% lower than in 2014. The main markets were as follows:

  • Republic of Poland – 61%;
  • Republic of Austria – 13%;
  • Republic of Belarus – 8%.

The share of exports among Ukrainian minwaters producers in 2016 is as follows:

  • “Morshinsky Mineral Water Plant” – 3% of all products produced;
  • Ukrainian Minwaters Corporation – about 0.8%
  • the largest share of exports is from producers from Transcarpathia, which accounts for about 5%.
Minvod market analysis

Such a small part of exports is explained by the distrust of Western consumers to the Ukrainian minwaters producer, although 1.2 million dal were exported to CIS countries in 2016.

And imports of mineral water – no more than 5% of total consumption. Despite a slight increase in the share of imports, it is prevented from expanding by the increased production of Ukrainian companies, as well as by the customs duty – 30%, but not less than 60 euro cents per liter.

Mineral water market

Portrait of CA consumers of mineral water

CA portrait
CA portrait

An average Ukrainian drinks up to 15 liters of mineral water per year, while a Frenchman, for example, drinks 115 liters per year, and on average in Europe this figure fluctuates at the level of 100 liters. This is due to low solvency and low culture of mineral water consumption among Ukrainians. But, the seasonal popularity of mineral water (increase in demand in the warm and hot season and decrease in the cold season) goes beyond its limits due to the popularization of healthy lifestyle and fashion to be slim and beautiful.

Minvod shopping locations

The difficult years of 2014-2015 are behind us and producers are ramping up capacity again, emphasizing wholesomeness. In 2015, sparkling water production fell by 7% to 70 million dal and non-carbonated water production fell by 4% to 34 million dal. 2016 was more successful: in the first six months of the year alone, sparkling water output increased by 6% to 36 million dal and still water by 20% to 20.4 million dal.

The reason for this drop was a sharp decline in the solvency of the population: the rising cost of utilities, the fall in the hryvnia exchange rate, military operations and the loss of markets in Donetsk and Luhansk regions, as well as in the Autonomous Republic of Crimea. Despite the fact that the incomes of many citizens did not change, mineral water prices increased – on average by 5% compared to 2015, when prices increased by 58%.

To improve the situation and to improve the situation and increase demandIn order to improve the situation and increase demand, manufacturers rely on the consumer’s desire to lead a healthy lifestyle, as well as on products for children.

Mineral water market analysis: the best mineral waters in Ukraine

Minvoda is best to drink directly at the resort – directly from the source. Mineral waters can lose their medicinal properties, which is why many are not sold in bottles. To preserve bottled water, it is saturated with carbon dioxide.

Mineral water market analysis
Mirgorod mineral waters
Kvassov Glade
Lujan water
Berezovskaya water

Mineral water market research: peculiarities of production

Mineral water is water that has been extracted from a depth of at least 100 meters.

How mineral water is extracted

To prevent water from becoming cloudy in the future and to get rid of unnecessary impurities, water is filtered using filters made of natural materials, such as charcoal or sand, and sometimes synthetic analogs are also used. Environmentally clean water has its own microflora, which must be removed in order for the water to be stored and not spoiled. To do this, water is sanitized using ultraviolet light or ozone. Water is carbonated with a saturator or special equipment that saturates chilled water with carbon dioxide.

Mineral water market analysis: results

A large number of mineral springs, environmental degradation and health concerns are not the main factors influencing the growth of mineral water consumption and the Ukrainian mineral water market in particular.

The human body is made up to 90% water. It is through water that most of the biochemical processes in the body take place. Water deficiency provokes the slowing down of these processes and inhibition of the elimination of toxic substances from the body, and can lead to fatal consequences. Therefore, it is recommended to drink 30 ml of water for each kilogram of human weight per day. But along with the products of vital activity of the body, water removes and minerals. How to replenish them? Drink mineral water.

Target audience

Summarizing the analysis of the mineral water market in Ukraine, we can confidently state that the extraction and production of this useful and necessary product remains in demand. The outlook for the mineral water market depends on the producers themselves: in order to improve quality and develop new markets, it is necessary to modernize production.

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– Creating a work plan
– Completing the team
– Prices and Terms