Salt, pure NaCl and sea water market Ukraine

Earlier Report Observations

The Ukrainian salt market in 2018 was characterized by an oligopoly dominated by the state-owned enterprise 'Artemsol', the largest rock salt producer in Europe. However, the market was already facing constraints due to the loss of production capacities in Crimea and eastern Ukraine because of military actions, as well as the closure of its key export market, Russia. Market volume stood at 1.3 million tons that year. It dipped slightly to 1.2 million tons in 2019, then jumped sharply to 1.7 million tons in 2020. By 2021, 'Artemsol' was producing about 1.9 million tons of salt, underpinning market stability, but the total market volume declined to 1.5 million tons, partly due to increased exports.

A drastic transformation occurred in 2022 following Russia's full-scale invasion. The operation of 'Artemsol' was halted due to the occupation of Soledar, creating a severe salt shortage on the domestic market. To meet demand, imports surged, primarily from European countries like Poland, Romania, and Turkey, while exports nearly collapsed. Consequently, despite the shutdown of the largest producer, the total market volume grew by over 50% to 2.3 million tons, entirely supplied by imports. The Drohobych salt works increased its capacity but could not compensate for the loss. Consumer behavior also shifted, with panic buying leading to artificially inflated prices and a greater reliance on imported salt.

In 2023 and 2024, the market adapted to the new conditions. Imports remained the primary supply source, with volumes continuing to rise. Concurrently, domestic salt extraction expanded in alternative regions like Zakarpattia, and new players entered the market to fill the void left by 'Artemsol'. Legislative initiatives to reform subsoil use and simplify mining permits created a more favorable environment for local production. Logistics improved through agreements with 'Ukrzaliznytsia'. Consumers developed a preference for high-quality Ukrainian salt, which attracted interest from larger companies to this segment. Although precise market volumes after 2022 are unavailable, the trend points towards a gradual recovery of domestic production.

Production salt, pure NaCl and sea water Ukraine

In kind, 2017-2020, K t

Between 2017 and 2020, Ukraine ranked as the 20th largest global producer of salt, pure NaCl, and seawater.

Top producers of salt, pure NaCl and sea water, 2017-2020

World map of production of salt, pure NaCl and sea water, 2017-2020

Ukraine's production of salt, pure NaCl, and seawater declined for the second year in a row. In 2020, the country produced 2 000 K t, marking a controlled year-on-year decrease of 4.4%. Over the 2017-2020 period, production grew by 10.2%, with a compound annual growth rate of 3.3%. The largest decline occurred in 2019, at 4.5%, while the peak production was in 2018, reaching 2 192 K t, which also saw the biggest increase of 20.7%.

Annual dynamics of production Ukraine in kind, 2017-2020, K t

Exports salt, pure NaCl and sea water to Ukraine

Exports in kind, K t

Ukraine's exports of salt, pure NaCl, and seawater fell for the second consecutive year. In 2020, export volume was 362.9 K t, a dramatic 61.6% drop from 2019. From 2017 to 2020, exports decreased by 52.3%, with a compound annual decline rate of 21.9%. The highest export volume was in 2018 at 975.6 K t, which also recorded the largest increase of 28.1%.

Annual dynamics of product's exports to Ukraine in kind, 2017-2020, K t

From 2017 to 2020, Hungary, Poland, and Romania formed the core of Ukraine's exports in kind. Hungary accounted for 43.8% of exports, Poland for 30.6%, and Romania for 6.9%, together making up 81.2% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports to Ukraine in kind, 2017-2020

Exports in value, K $ US

Ukraine's cross-border shipments of salt, pure NaCl, and seawater declined for the second year in a row. In 2020, exports amounted to 15 777 K US dollars, down 44.4% from the previous year. Between 2017 and 2020, exports fell by 29.9%, equating to an annualized rate of 11.2%. The peak value was in 2018 at 29 357 K US dollars, which also saw the largest increase of 30.4%.

Annual dynamics of product's exports to Ukraine in value, 2017-2020, K $ US

In the 2017-2020 period, Hungary, Poland, and Romania accounted for the largest share of Ukraine's exports in value terms. Hungary contributed 35.9%, Poland 24.3%, and Romania 7.7%, together comprising 67.8% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports to Ukraine in value, 2017-2020

Imports salt, pure NaCl and sea water in Ukraine

Imports in kind, K t

Ukraine's imports of salt, pure NaCl, and seawater increased for the third consecutive year. In 2020, import volume stood at 92.5 K t, reflecting a strong 15.5% rise compared to the previous year. Over the 2017-2020 period, imports grew by 113.3%, with a compound annual growth rate of 28.7%.

Annual dynamics of product's imports in Ukraine in kind, 2017-2020, K t

From 2017 to 2020, Belarus remained the dominant source for Ukraine's imports in kind, holding a 76.6% share of total flows, while the remainder was fragmented across other markets.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports in Ukraine in kind, 2017-2020

Imports in value, K $ US

Ukraine's imports of salt, pure NaCl, and seawater rose for the third year in a row. In 2020, imports amounted to 9 364 K US dollars, up 12.0% from the past year. Over the 2017-2020 period, imports increased by 118%, with a compound annual growth rate of 29.7%.

Annual dynamics of product's imports in Ukraine in value, 2017-2020, K $ US

Between 2017 and 2020, Belarus, Turkey, and Poland made the biggest contributions to Ukraine's imports in value terms. Belarus accounted for 64.6%, Turkey for 9.5%, and Poland for 8.9%, jointly representing 82.9% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports in Ukraine in value, 2017-2020