Russia Plastic Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Russia Plastic Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Russian plastic packaging market registered a CAGR of 0.7% over the forecast period, 2021-2026. Consumers have shown an increasing inclination toward plastic packaging compared to other packaging products, as plastic packages are lightweight and easier to handle. Similarly, even the big manufacturers prefer to use plastic packaging solutions because of their lower cost of production.

Key Highlights

• Packaging is the largest end-user segment for plastic products, accounting for more than 40% of the total plastic usage in the world.
• The introduction of polyethylene terephthalate (PET) and high-density polyethylene (HDPE) polymers has expanded plastic packaging applications in the liquid packaging segment. High-density polyethylene plastic bottles are among the popular packaging choice for milk and fresh juice products.
• The rise in the working women population in the country is increasing the overall demand for packaged food as these consumers also contribute to significant spending power and a busy lifestyle.
• However, with the increasing awareness about health concerns and the prevention of waterborne diseases, consumers are continuously purchasing packaged water. With the increased sales of bottled drinking water, the demand for plastic packaging is rising, driving the market.
• Since the start of the Covid-19 coronavirus pandemic, consumers and businesses have had to alter how they view packaging health and safety. Since the early days of the pandemic, single-use plastic has been gaining importance because consumers were concerned that reusable packaging would increase the risk of transmission.
• However, as per Vanden Recycling Ltd, there has been no reduction in demand for PET and HDPE for use in plastic bottles, and other polymers are also in demand for other plastic packing applications.

Key Market TrendsPandemic is being a driving force for demand in plastic flexible packaging

• There is an increase in the demand for flexible plastic packaging for food, beverage, and pharmaceutical applications for product packaging during COVID-19.
• People are resorting to panic buying and bulk stocking due to the fear of lockdowns. More people are ordering daily staples and fresh food through online channels, which leads to an increase in the demand for flexible plastic packaging. The Russian Government has asked the food industry players to ramp up production to avoid supply-side shocks and shortages and maintain uninterrupted supply. FMCG companies are responding by demanding more flexible plastic packaging products.
• Demand for flexible plastic packaging in the pharmaceutical industry will remain strong as hospitals, pharmaceuticals, and PPE manufacturers respond to the crisis. Demand for household, healthcare, and medical products is not expected to decline dramatically, and retail distribution of these types of products through online distribution is expected to increase. This will increase the demand for flexible plastic packaging solutions for timely raw materials and finished products to their respective end-users.

The driving forces of food packaging and online trade

• Russia's packaged food trading volume reached approximately 27.5 million tonnes in 2018 and is expected to increase to 29 million tonnes by 2019. Together with the beverage market, it is currently ranked 8th in the world.
• Imports of food processing and packaging equipment have doubled since 2009. In 2018, the market for these import systems was worth about USD 2 million.
• The forecasts from the renowned Gaidar Institute predict an increase in online trade, which will soar to 2.7 billion Rubles (around 37.8 billion euros) by 2024. Morgan Stanley goes a step further, forecasting a turnover increase of 3.5 billion Rubles.

Competitive Landscape

The Russian plastic packaging market is moderately competitive because of the presence of many players running their business in national and international boundaries. The market is mildly concentrated with the presence of major players like Alpla, AMCOR Limited, Bemis Company Inc., Berry Plastics Corporation, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.