Political & economic turmoil in 2014, owing to the Russian-Ukrainian conflict has significantly impacted the Russian dairy market with the government implementing one year embargo on food imports including milk, cheese and other dairy products.
Around 78% of the Russian population consisting majorly of people with low income and socially disadvantaged groups, is dependent on dairy products. However, in the latter half of the year owing to the ban on European foods, the region felt a huge shortage of supplies in the dairy sector. Increased production by the domestic players could not forego the deficit which led to a reduction of the market volume by 24% in Russia.
However, greater availability of supermarkets, changing lifestyle, new product development and rising penetration of refrigerators in rural and urban areas has positively impacted the demand for dairy products in the country. Additionally, increasing consumer awareness of the health benefits has spurred up the demand for the dairy products in the region. Whereas, the recent innovation in retail marketing channels has also facilitated the rapid expansion of Russian dairy market.
As dairy products are easily susceptible to contamination on prolonged exposure to the atmosphere, they can get soiled, making them unfit for human consumption. To satisfy the needs of the consumers who are becoming more health-conscious, the dairy product manufacturers are slowly changing their existing product packaging portfolio. They are now offering a range of products which are in line with the consumer expectations. One of the major factors that is contributing to this trend is the development of highly efficient packaging solutions for dairy products. The initiatives which have been taken by the packaging companies in terms of innovations and offerings has greatly contributed to the dairy products market growth.
Owing to the ban, stringent government regulations and high inflation level, the Russian dairy packaging market is expected to grow moderately at a CAGR of 2.5% over the forecast period. However, the gains are mainly driven by the small containers and food eaten/taken away for personal consumption. Dairy packaging products such as pouches and bottles are expected to gain significant traction over the next five years.
Moreover, the growing usage of dairy products such as cheese, butter and yogurt in food and restaurants chains will also drive the dairy product packaging industry. Different sizes and formats of packaging with longer shelf life are the other major factors that will contribute to the dairy packaging market growth in Russia.
Focus on detrimental effects of packaging on the environment has created the need for sustainable packaging solutions. Government policies and consumer awareness have impacted the demand for the usage of recycled materials for packaging solutions. To reduce energy cost without affecting the flexibility of machinery and design of the products is one of the key impediments faced by the Russian dairy packaging manufacturers.
Growing demand for multi-layer and tetra packaging along with blow-molded HDPE bottles in the region will open new gateway of opportunities for the market players.
Some of the major players mentioned in the report are Amcor, Mondi Group, Rexam, Aptar Group, Silgan Holdings, Tetra Laval and CAN-PACK S.A.
Key Deliverables in the Study
1. Research Methodology
2. Executive Summary
3. MARKET OVERVIEW
3.2 Industry Value-Chain Analysis
3.3 Industry Attractiveness - Porter's Five Forces Analysis
3.4 Industry Policies
4. MARKET DYNAMICS
5. Technology Overview
5.1 Technology Snapshot
6. Market Segmentation and Forecasts
6.1 Russia Dairy Packaging Market by Packaging Type
6.2 Russia Dairy Packaging Market by Products
6.2.3 Soy Beverages
6.2.5 Coffee Whiteners
6.3 Russia Dairy Packaging Market by Products
6.3.3 Cartons and Boxes
7. Competition Analysis - Company Profiles
7.2 Mondi Group
7.5 RPC Group
7.9 Silgan Holdings
7.10 Tetra Laval
7.11 DS Smith Plc
7.12 CAN-PACK S.A.
7.13 Prolamina Packaging
8. Investment Analysis
9. Opportunities in Russia Dairy Packaging Market
10. Future of Russia Dairy Packaging Market