EXPORTS From ICE-Agency data and analysis of the Russian flexible packaging market. Dedicated to companies interested in developing their business abroad.
Paper waste In the decade 2004-2014 the Russian production of cardboard and recycled paper increased from 30% to 65%: in the east as well rise in paper waste collection is significantly changing the cellulose based raw materials market.
In the converting sector the Russian market has been affected by the global consumer trends, that see growing demand for food packaging that is single-dose and/or ready for consumption (frozen or chilled ready meals, convenience produce, pre-packaged and pre-weighed fresh food). Here, as in other countries, this trend represents an increase in demand for flexible packaging, which in Russia corresponds to 70% of the overall demand for packaging, 90% of which accounted for by the food sector.
Challenges and opportunities
Against the background of the international economic crisis, Russia is going through a particularly critical juncture, exacerbated by the devaluation of the rouble, the collapse of oil prices and the US and EU sanctions. In this scenario, imports are discouraged by rising costs, and local production is taking advantage of the situation. Domestic demand for consumer goods will hence cause an increase in the demand for packaging, which will be increasingly met by Russia’s domestic industry.
As regards machines the trend is not as clear, as local builders are not yet able to cover internal needs. This will undoubtedly benefit foreign companies that export to the huge Asian market.
More generally, the converting industry is experiencing further business openings, resulting in the development of new technologies such as 3D printing, which is particularly arousing interest in big cities such as Moscow and St.Petersburg.
In conclusion
For Russia, even in a difficult year full of unknowns like that of 2015, an increase, or at least stabilization, of machinery imports, set against the growth of domestic production of packaging should be seen. Demand for packaging responds primarily to the needs of the food and beverage sector, hence hygiene and food safety requirements acquire a strategic importance; in spite of the current difficulties, Russian companies are willing to invest in packaging technologies that ensure better product preservation.
Source: ICE-Agenzia headquarters in Rome, Office of Engineering, Chemicals, Energy and Environment directed by Alessandro Liberatori. Management representative: Matteo Masini, tel. 06.5992.9356, email: alim.imballaggio@ice.it
