Market Trends of Russia Paper Packaging Industry
This section covers the major market trends shaping the Russia Paper Packaging Market according to our research experts:
Increasing Growth of E-commerce Creating Demand for Corrugated Boxes
- The growing e-commerce market in the country is creating a demand for corrugated and paperboard products, especially from transportation and logistics players. Most recently, corrugated boxes have become an integral part of the personal care industry due to the gaining popularity of subscription boxes in recent years. The corrugated boxes are not only sturdy but can hold different products with the help of a detailed cut-out in the box. Since the subscription boxes are usually shipped, corrugated boxes are preferred.
- Subsection boxes are catered to meet cosmetic requirements and often hold more than one product. These products are specially customized to meet the grooming requirements of men, women, the elderly, and children.
- The corrugated boxes are highly versatile. These boxes can take various forms other than the box, and due to the sustainability issues with plastic packaging, these products are slowly replacing plastic bags. The corrugated boxes act as a significantly perfect base to hold several types of printing techniques. For these reasons, cosmetics and e-commerce companies prefer corrugated packaging as a marketing tool. These boxes can act as mobile billboards, where the companies have the advantage of spending less on marketing products.
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Beverages Sector to Witness Significant Growth
- Even more than bioplastics, paper is regularly mentioned as a plastic container substitute. Several companies are switching to paper-based packaging to limit the usage of plastics. However, current evidence suggests that paper packaging requires three times the mass of its plastic equivalent to provide the same purpose. As a result, except for its carbon footprint, the paper has a higher overall environmental impact. Furthermore, substituting form for plastic could result in a significant supply shortage. Paper is a temporary fix that merely shifts the burden of packaging issues.
- Many companies in the market are expanding their footprints, which will further boost the studied market segment. For example, recently, Huhtamaki announced investment plans for further growth in Russia. To respond to the fast development of the retail business and egg packaging industry in Eastern and Central parts of Russia, the company is setting up a new fiber packaging manufacturing plant at its existing site in Alabuga, Tatarstan. Preparatory work on the site is underway, and production of fiber packaging had begun during the first quarter of 2022.
- A premium of 10-20 cents per piece is routinely applied to all paper packaging items. This is a significant barrier to paper package uptake. Hence, the industry has begun using a broader feedstock, including agricultural waste and hardwood and softwood fibers, to address the problem. The objective is that by employing waste fibers, businesses will achieve more sustainability and cheaper costs, lowering product premiums.
- Moreover, Kraft Heinz was to collaborate with Pulpex in May 2022 to develop a paper-based, renewable, and recyclable bottle made entirely of sustainably sourced wood pulp. According to the CPG behemoth, Heinz is the first sauce brand to evaluate the possibilities of Pulpex's sustainable paper bottle packaging for its sauces.
