Market facts

In order to satisfy these demands, Russia imports large quantities of technology and material:  in the first eleven months of 2017 processing and packaging machinery to a value of some Euro 341 million was purchased from Germany alone – 13% more than in the previous year.  In order to further stimulate the domestic economy the Russian government has been pursuing a policy of subsidisation and import substitution.  Key industries are generously subsidised, approximately Euro 3.5 billion is planned for agriculture alone in 2018.  Exports are increasingly being replaced by home-produced goods, whose quality in turn is improving.  By increasing domestic production the Russian packaging industry has been growing for years – between 2015 and 2020 by 8.5%.

The most promising key industries in Russia for the processing and packaging industry include agriculture and food, drinks (non-alcoholic), pharmaceuticals and cosmetics.  In the food sector, the first eleven months of 2017 saw an increase in milk products of 7.6% compared with the previous year, in meat products of 5.8% and in confectionery of 2.3%.  The ambitious young middle class in particular are demanding not just convenience products but are becoming more health aware which is reflected in the general decrease in alcohol consumption.  At the same time the non-alcoholic sector is continually growing (+5.6% in 2017), a particular favourite being mineral water.  Russians place high value on their appearance and health which is also reflected in the high growth rates in the pharmaceutical (+11.2% in 2017) and cosmetics (+7% in 2017) industries.