Packaging Industry in Russia

Euromonitor International's Packaging Industry in Russia report offers a comprehensive guide to the size and shape of the market at a national level. It provides historic market size data by industry, allowing you to identify the most popular pack types. It identifies the leading companies, and offers strategic analysis of key factors influencing the market- be they new product developments, recycling or legislation issues. Forecasts illustrate how the market is set to change.

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Executive summary

Moscow and St Petersburg prioritise recycling

In order to decrease the negative impact of waste on the environment and increase efficiencies in resource management, a new law regarding industrial and consumer waste, which prioritised recycling over storage and incineration, was approved by Moscow parliament in November 2005. At the same time the St Petersburg government developed a programme called “Usage of Solid Consumer Waste in St Petersburg in 2006-2014” to recycle 25% of consumer waste (including packaging) by 2007, with the plan of increasing this to 50% by 2012, and then 70% by 2015.

International players win industry share through mergers and acquisitions

In 2005 NB Europe merged with NB-Retal, the largest PET preform manufacturer in Russia. As a result the new company, Retal Industries, became one of the largest packaging producers in Eastern Europe and the CIS. Another international player, Mayr-Melnhof Packaging, acquired St Petersburg folding carton manufacturer Rossiyskiy Poligrafitcheskiy Center in 2004 and a majority share of one of Russia’s largest folding carton producers, Polygrafoformleniye in 2005.

High quality packaging producers increase capacity

Russian packaging producers which installed high quality modern equipment during the last few years of the review period continued to increase their production capacity and invest in new technologies to satisfy the demand for high quality packaging. Between 2005 and 2006 leading producers such as Komus Upakovka (rigid plastic), Metupak (metal food cans and metal closures), and Art Metall Pack (metal tins, food cans and peel-off-foil closures) invested millions in installing new facilities preparing for further expansion in Russia and to develop exports to the CIS and Eastern Europe.

Local manufacturing of multi-layer films

Russian producers are becoming increasingly involved in the manufacture of multi-layer flexible packaging. In 2005, four Russian manufacturers – BeePack Group, Biaksplen, Green Plastic, and Novatek-Polymer – began producing this type of packaging. These plants are expected to reduce the need for imported films.

Local and international players open new packaging plants

In 2005, the leading Russian manufacturer of glass bottles, Ruscam invested in a new plant in Ufa city (Urals region) whilst Tetra Pak launched the project of building a new, liquid food packaging factory. Essel Propack, international squeezable plastic tube manufacturer, also recently opened a new plant near Moscow in Noginsk city (Moscow area).

Table of contents

EXECUTIVE SUMMARY

Moscow and St Petersburg prioritise recycling

International players win industry share through mergers and acquisitions

High quality packaging producers increase capacity

Local manufacturing of multi-layer films

Local and international players open new packaging plants

MARKET BACKGROUND

PACKAGING LEGISLATION

Potential introduction of new law on packaging waste

RECYCLING AND THE ENVIRONMENT

Moscow government prioritises waste recycling

Waste recycling programme in St Petersburg

CORPORATE ACTIVITY IN PACKAGING

NB-Retal and NB-Europe forms new Eastern European group: Retal Industries

MM Packaging acquires Polygrafoformleniye

Players choose between packaging manufacturing equipment or raw materials

Local manufacturers increase capacity and opt for diversification

Local and international players open new plants

Local manufacturing of multi-layer films set up in 2005

MAJOR MARKET PLAYERS (LOCAL COMPANY PROFILES)

NB-RETAL, ZAO

NB-Retal the largest manufacturer of PET preforms in Russia and CIS

NB-Retal’s value-added growth strategy

Summary 1 NB-Retal, ZAO Operational Indicators 2005

Summary 2 Major End-Use Markets for NB-Retal, ZAO by Pack Type 2005

KOMUS UPAKOVKA, OOO

Komus Upakovka the largest manufacturer of thin wall plastic containers

Strategic plans to manufacture BOPS films

Summary 3 Major End-Use Markets for Komus Upakovka, OOO by Pack Type 2005

TUBOPLAST OTRADNOYE OAO

Summary 4 Tuboplast Otradnoye OAO Operational Indicators 2005

Summary 5 Major End-Use Markets for Tuboplast Otradnoye OAO by Pack Type 2005

TUBAPAK, OOO

New plant appeared in 2006

Plans to double capacity will give Tubapak one third of total sales in Russia

Summary 6 Tubapak, OOO Operational Indicators 2005

Summary 7 Major End-Use Markets for Tubapak, OOO by Pack Type 2005

TORN STS

Torn the first and most active manufacturer of laminated tubes

Summary 8 Major End-Use Markets for Torn STS by Pack Type 2005

METUPAK, OOO

New equipment installations

Plans for the future

Summary 9 Metupak, OOO Operational Indicators 2005

Summary 10 Major End-Use Markets for Metupak, OOO by Pack Type 2005

ROSTAR, OOO

Manufacturing facilities

High standard quality certificates

Main clients – leading beer manufacturers

Client-orientated strategy

Summary 11 ROSTAR, OOO Operational Indicators 2005

Summary 12 Major End-Use Markets for ROSTAR, OOO by Pack Type 2005

LINAR, OOO

Modern production of metal aerosol cans now available in Russia

Growth strategy

Summary 13 Major End-Use Markets for Linar, OOO by Pack Type 2005

DOZAKL (DMITROVSKIY OPITNIY ZAVOD KONSERVNOY LENTI), OAO

Certificates

Investments in new equipment

Summary 14 DOZAKL (Dmitrovskiy Opitniy Zavod Konservnoy Lenti), OAO Operational Indicators 2005

Summary 15 Major End-Use Markets for DOZAKL (Dmitrovskiy Opitniy Zavod Konservnoy Lenti), OAO by Pack Type 2005

ART METALL PACK, ZAO

Growth strategy to increase industry share

“Easy peel” production and high quality tins

Main application – coffee

Summary 16 Art Metall Pack, ZAO Operational Indicators 2005

Summary 17 Major End-Use Markets for Art Metall Pack, ZAO by Pack Type 2005

NORDENIA SLAVNIKA, ZAO

Member of large international group

Innovation and high quality films form main focus of activity

Large coverage by end-use application

New office in St Petersburg to develop activities in the northwest of Russia

Summary 18 Major End-Use Markets for Nordenia Slavnika by Pack Type 2005

CONFLEX SPB, ZAO

Large range of products and applications

Membership and awards

Summary 19 Major End-Use Markets for Conflex SPb, ZAO by Pack Type 2005

RUSCAM, OOO

Turkish manufacturer to expand into Russia

Continued production growth expected

Three plants become operational over the review period

Total capacity to exceed three billion bottles by 2008

Summary 20 Ruscam, OOO Operational Indicators 2005

Summary 21 Major End-Use Markets for Ruscam, OOO by Pack Type 2005

TETRA PAK, ZAO

Tetra Pak reinforces its position

Innovations driven by industry growth

Tetra Pak contributes to growth of the Russian market for long-life/UHT milk

Largest liquid carton plant in Russia to be built

Summary 22 Tetra Pak, ZAO Operational Indicators 2005

Summary 23 Major End-Use Markets for Tetra Pak, ZAO by Pack Type 2005

LAMBUMIZ, ZAO

Famous plant invests in modern equipment

Summary 24 Lambumiz, ZAO Operational Indicators 2005

Summary 25 Major End-Use Markets for Lambumiz, ZAO by Pack Type 2005

VEDA-PAK, ZAO

Veda-Pak is part of a large holding

Plant in St Petersburg one of the best in Russia

Advanced equipment to meet demands from leading food and beverage producers

Plant in Volga region to increase capacity and target new business

Strategy to win new geographical markets

Summary 26 Veda-Pak, ZAO Operational Indicators 2005

Summary 27 Major End-Use Markets for Veda-Pak, ZAO by Pack Type 2005

MAJOR MARKET PLAYERS BY PACK TYPE

RIGID PLASTIC

Growing demand and investment activity in tubes

International leader enters laminated tubes

Leaders tend to monopolise PET preforms

Polarcup leads in the supply of thin wall plastic containers

Increasing capacity for Komus Upakovka

Summary 28 Major Rigid Plastic Packaging Manufacturers by Pack Type 2005

METAL

MMK is the only local producer of tinplate

Kaliningrad region leads in production of metal food cans

Local tinplate available but tinplate packaging is in short supply

Rexam to build a new beverage can plant in Russia

Summary 29 Major Metal Packaging Manufacturers by Pack Type 2005

FLEXIBLE PACKAGING

Proliferation of small- and medium-sized players

The largest Russian flexible packaging companies

Producers invest in modern equipment

Local manufacturing of multi-layer films set up in 2005

Summary 30 Ranking of Major Flexible Packaging Manufacturers 2005

GLASS

Local manufacturers increase capacity

Three factories produce three quarters of glass jars

Declining demand for foreign glass packaging

Summary 31 Ranking of Major Glass Packaging Manufacturers 2005

LIQUID CARTONS

Tetra Pak monopolises the industry

SIG Combibloc strong in juices

Summary 32 Share of Major Liquid Carton Manufacturers 2005

PAPER-BASED PACKAGING

Foreign companies invest in folding carton production

MM Packaging continues its expansion in Russia

Other paper-based packaging manufacturing not developed in Russia

Summary 33 Major Paper-based Packaging Manufacturers by Pack Type 2005

CLOSURES

Local production of metal screw closures is developing well

PET preform producers are important plastic closure suppliers for beverages

International and local plastic closure specialists develop well

Summary 34 Major Closure Manufacturers 2005

APPENDIX

Consumer packaging share is growing

Local production of packaging is becoming more established

Table 1 Share Held by Local Russian Producers in the Supply of Selected Pack Types to the Russian Market – % 2005