The current state and trends in the development of the alcoholic beverages market in Ukraine

Abstract

The article examines the current state of the domestic market of alcoholic beverages, which is one of the most important for the state due to a number of reasons: economic, social, cultural, etc. The normative acts that regulate the production and circulation of alcoholic beverages in Ukraine, in particular the Tax Code and laws of Ukraine, and the latest changes adopted by the Verkhovna Rada of Ukraine were analyzed. To determine the current state of the alcoholic beverages market, the dynamics of its sales volume and the share of Ukrainian goods in the domestic market in the period from 2010 to 2020 were considered. The positive dynamics of the first indicator, in comparison with the negative dynamics of the second indicator, indicate a decrease in the business activity of domestic enterprises from a number of reasons: development of the shadow sector of alcohol production, increase in excise taxes, decrease in purchasing power, etc. The type of competitive relations of the alcoholic beverage market is determined, based on the key characteristics of its functioning: the number of sellers, elasticity of demand, control over pricing, methods of competition, barriers to entering the market. The conducted analysis revealed that there are a significant number of producers and sellers of goods on the market; demand for products is elastic; there is a state regulation, including through the establishment of minimum wholesale and retail prices; all methods of competition, both price and non-price, are used; there are certain restrictions for enterprises when entering the market. The main trends in the development of the alcoholic products market, formed under the influence of external and internal environmental factors, are formulated: the reorientation of the Ukrainian consumer to the products of the domestic producer; premiumization of the consumption of alcoholic beverages and raising the level of awareness of consumers; digitization; a new level of home consumption; changing consumer tastes and the desire for something new in the range of alcoholic products.

Keywords

• alcoholic beverages
• elasticity
• market
• monopolistic competition
• enterprise