Russia’s packaging industry has a good history of growth which is set to continue this year.  It is anticipated that a compound annual growth rate of 1.2% will lead to the production of around 133,754.3 million units of packaging.  At present flexible packaging makes up the highest proportion of this and is expected to achieve the highest levels of growth.

The flexible packaging market within Russia is much less saturated than in other areas so it has shown a rapid rate of development. 

As lifestyles within Russia become busier the demand for fast moving consumer goods (FMCG) has risen. At present Russia has the 8th largest market globally for packaged food products.  Despite the financial crisis in 1024-15 which reduced consumer buying power, the sector increased to 27.5million tonnes and is likely to increase further during 2020.

In 2014, following the imposition of sanctions, the Russian government implemented a policy to reduce the country’s use of imported goods and to boost production internally across all industries.  As a result food production increased with a concomitant rise in demand for food packaging supplies. 

There is a high demand for equipment and materials in Russia and this has provided some great opportunities for international companies seeking new export markets.  In fact, imported equipment for packaging has doubled in the last decade – reaching a staggering 87% of the market.  The demand placed on local companies meant that in order to compete, expand and meet the demands of the government for increased domestic production they turned towards foreign technology, equipment and packaging.  The market remains strong, with an estimated $2billion worth of imported food packaging and processing equipment entering Russia during 2017.