Russia Pouch Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.24 Billion |
| Market Size (2029) | USD 1.67 Billion |
| CAGR (2024 - 2029) | 6.14 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Russia Pouch Packaging Market Analysis
The Russia Pouch Packaging Market size is estimated at USD 1.24 billion in 2024, and is expected to reach USD 1.67 billion by 2029, growing at a CAGR of 6.14% during the forecast period (2024-2029). In terms of shipment volume, the market is expected to grow from 14.63 billion units in 2024 to 20.5 billion units by 2029, at a CAGR of 6.98% during the forecast period (2024-2029).
Consumers increasingly favor pouch packaging over other options, citing its lightweight nature and ease of handling. Major manufacturers echo this presumption, drawn to plastic's cost-effectiveness.
- The demand for pouch packaging, especially in the food, pharmaceutical, and other sectors, is increasing in Russia. This trend is further fueled by a rising preference for online shopping, especially daily essentials and fresh foods, amplifying the need for packaging.
- The growing population of working women, known for their purchasing power and hectic schedules, is further fueling the demand for packaged foods. According to the Russian Federal State Statistics Service, the number of employed females in 2020 was 34.39 million, and it reached 35.06 million in 2022. These figures are anticipated to witness further growth by the end of 2024.
- According to the Flexible Packaging Association, Russian consumers favored beauty and personal care products packaged in more cost-effective formats. This shift included a move toward cheaper materials and a preference for flexible plastics over traditional packaging. Manufacturers are offering variations in sizes, catering to different product categories.
- Food manufacturers are adopting cost-effective strategies amid economic challenges and elevated consumer frugality. They leverage high-resolution food images against sleek black backgrounds to create a premium appeal, expecting to convince consumers toward their products. As Russian consumers grapple with increasingly hectic schedules, they gravitate toward convenience products, driving the need for pouch packaging products. In response, manufacturers are tweaking their packaging designs, making them more ergonomic, compact, and travel-friendly.
- Amid Western sanctions, the Russian packaging industry confronts various challenges. Unlike past crises marked by broad trends like declining demand and weakened purchasing power, the current landscape in Russia's packaging sector is rife with distinctive obstacles. Several major players, including Mondi and Smurfit Kappa, have divested their packaging ventures in Russia. These challenges are further exacerbated by heightened regulatory scrutiny, which targets polymer prices and extends its focus to packaging and the final products themselves.
Russia Pouch Packaging Market Trends
Convenience and Lightweight Packaging Driving Growth
- Pouch packaging's affordability, lightweight nature, print adaptability, and ability to take on diverse shapes propel its adoption. Critical drivers for its uptake include the convenience offered. The surge in demand for premium, flexible packaging across industries can be attributed to its rising popularity in food and other sectors.
- According to International Supermarket News, in May 2024, Russian supermarkets witnessed a notable growth phase, with an annual turnover increase of up to 14%. This upswing is fueled by several factors, such as escalating consumer expenditures, strategic mergers and acquisitions, and the broadening footprint of brick-and-mortar and e-commerce platforms. The rise in the number of supermarkets and their growth are anticipated to leverage the need for pouch packaging.
- Over the last few years, the Russian retail sector has transitioned from independent stores to chain structures. This shift is driven by the advantages of chain organization, including a unified procurement policy, economies of scale, advanced logistics, proprietary distribution centers, and enhanced brand recognition. Yet, the growing dominance of retail chains raises concerns about market space and competition. According to the Russian Federal State Statistics Service, retail trade revenue in Russia in 2020 was RUB 33.56 trillion (USD 0.39 trillion), and it reached RUB 47.4 trillion (USD 0.55 trillion) in 2023.
- The packaging industry is undergoing significant shifts, with a pronounced focus on enhancing brand experiences. Concurrently, the rising demand for convenience stands out as a primary catalyst for these changes. There is a notable surge in the adoption of flexible packaging, particularly pouches. This preference is driven by the convenience they offer to consumers and manufacturers. As a result, flexible packaging is increasingly acknowledged as a pivotal tool in fostering brand loyalty.
- Urbanization trends are amplifying the emphasis on convenience and sustainability in packaging. According to the Russian Federal State Statistics Service, in 2023, Russia’s urban population was 109.7 million. A broader industry shift from rigid to flexible packaging is evident, driven by the desire for convenience and response to evolving lifestyles, especially with the rise of smaller households and the ensuing demand for single-serve options.
Food Industry to Witness Robust Growth
- Food production and processing play a pivotal role in Russia's economy. The food market stands out as one of the nation's lucrative sectors, consistently ranking among the top globally. Over the past years, grocery sales in Russia have steadily risen, with online food retail emerging as a critical revenue driver.
- Furthermore, the evolving lifestyles in the region fuel a heightened appetite for ready-to-eat foods. This demand is peaking, driven by an increasingly time-strapped workforce and a Gen-Z cohort that values convenience. To meet these demands, manufacturers are integrating cutting-edge technologies into pouch packaging, enhancing barrier capabilities against moisture and oxygen. Such advancements are crucial, especially in ready-to-eat foods, where product integrity and extended shelf life are paramount.
- Over the past five years, Russia has significantly bolstered its plastic production capabilities, with the sector witnessing a remarkable 62% growth from its previous size. Data indicates that approximately 15% of Russia's industrial output comprises plastic-based products, spanning food and other industries. This surge in plastic production may fuel the demand for pouch packaging.
- The surge in retail packaging demand, primarily catalyzed by the COVID-19 health crisis, is noteworthy. With more individuals turning to online platforms for their daily essentials and fresh food, the need for robust packaging solutions has increased. The Russian government has urged the food industry to scale production to avert shortages and ensure a steady supply, further strengthening the need for pouch packaging.
- According to the Federal Customs Service of Russia, the confectionery food exports to Russia were valued at USD 1,947 million in 2022, reaching USD 2,042 million in 2023. Similarly, the meat and sub-products segment's export value was USD 2,150 million in 2023, which increased from USD 1,700 million in 2022. Such a rise is expected to push the demand for the pouch packaging market in the country.
Russia Pouch Packaging Industry Overview
The Russian pouch packaging market is fragmented with domestic and global players such as Uflex Limited, Sonoco Products Company, OKHTA LLC, Vakumpak-M, Danaflex Group, etc. Players operating in the region are focused on expanding their business through mergers, collaborations, acquisitions, product innovations, and more.
For instance, in April 2024, Uflex, a flexible packaging company offering pouches and various other products, ramped up production in Russia to meet the growing demand for packaging films. UFlex, in a strategic move, inaugurated a cutting-edge 6.5 m-wide cast polypropylene (CPP) film line in Russia. With an impressive annual production capacity of 18,000 tonnes (t), this initiative solidifies UFlex's dedication to vertical integration.
Russia Pouch Packaging Market Leaders
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Sonoco Products Company
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Uflex Limited
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Vakumpak-M
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Danaflex Group
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OKHTA LLC
*Disclaimer: Major Players sorted in no particular order
Russia Pouch Packaging Market News
- February 2024: Constantia Flexibles inked a deal to purchase around 57% of Aluflexpack's shares, a significant move in the packaging realm. Aluflexpack, a key player in Europe's packaging arena, specializes in foil and film packaging, particularly for the consumer and pharmaceutical sectors. With a workforce of over 1,500 spread across 14 European locations, Aluflexpack's strengths complement Constantia Flexibles' existing packaging solutions.
- July 2023: Sibur Holding PJSC revealed that the new polypropylene production facility in Tobolsk will have a capacity of 570,000 tonnes. By 2026, Russia's polypropylene production is projected to increase by 570,000 tonnes. This expanded capacity will be fully operational by 2027, benefiting Russia, Sibur, and consumers.
Russia Pouch Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Urbanization Drives Demand for Convenient and Lightweight Packaging
5.2 Market Restraints
5.2.1 Stringent Regulations on Plastic Packaging Materials
6. Industry Regulation, Policy and Standards
7. MARKET SEGMENTATION
7.1 By Material
7.1.1 Plastic
7.1.1.1 Polyethylene
7.1.1.2 Polypropylene
7.1.1.3 PET
7.1.1.4 PVC
7.1.1.5 EVOH
7.1.1.6 Other Resins
7.1.2 Paper
7.1.3 Aluminum
7.2 By Product
7.2.1 Flat (Pillow & Side-Seal)
7.2.2 Stand-up
7.3 By End-User Industry
7.3.1 Food
7.3.1.1 Candy & Confectionery
7.3.1.2 Frozen Foods
7.3.1.3 Fresh Produce
7.3.1.4 Dairy Products
7.3.1.5 Dry Foods
7.3.1.6 Meat, Poultry, And Seafood
7.3.1.7 Pet Food
7.3.1.8 Other Food Products (Seasonings & Spices, Spreadables, Sauces, Condiments, etc.)
7.3.2 Beverage
7.3.3 Medical and Pharmaceutical
7.3.4 Personal Care and Household Care
7.3.5 Other End user Industries ( Automotive, Chemical, Agriculture)
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles*
8.1.1 Sonoco Products Company
8.1.2 Izaslav Company
8.1.3 Vakumpak-M
8.1.4 Danaflex Group
8.1.5 KubRotoPak
8.1.6 2a - Upakovka
8.1.7 Uflex Limited
8.1.8 OKHTA LLC
8.2 Heat Map Analysis
9. RECYCLING & SUSTAINABILITY LANDSCAPE
10. FUTURE OUTLOOK
Russia Pouch Packaging Industry Segmentation
Pouch packaging is a flexible product made from barrier films, paper, or foil, depending on the end-user’s requirement. The report analyzes the factors that impact geopolitical developments in the market studied based on the prevalent base scenarios, key themes, and end-user industries-related demand cycles. The analysis is based on the market insights captured through secondary research and the primaries. The market also covers the major factors impacting the growth of the pouch market in terms of drivers and restraints. The estimates exclude the weight and the cost of the content that is or is to be packed inside the pouch packaging solution. The scope of the study is limited to B2B demand.
The Russia Pouch Packaging Market is Segmented by Material Type ( Paper, Plastic and Aluminum), by Resin Type - Plastic ( Polyethylene, Polypropylene, PET, PVC, EVOH, Other Resins), by Product ( Flat ( Pillow and Side Seal), Stand Up), by End-User Industry (Food (Candy & Confectionery, Frozen Foods, Fresh Produce, Dairy Products, Dry Foods, Meat, Poultry, And Seafood, Pet Food, Other Food Products (Seasonings & Spices, Spreadables, Sauces, Condiments, etc.)), Beverage, Medical and Pharmaceutical, Personal Care and Household Care, and Other End-User Industries). The market sizes and forecasts are provided in terms of value (USD) and volume (Units) for all the above segments.
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| Paper | ||||||||
| Aluminum |
| By Product | |
| Flat (Pillow & Side-Seal) | |
| Stand-up |
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| Beverage | ||||||||||
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| Other End user Industries ( Automotive, Chemical, Agriculture) |
Russia Pouch Packaging Market Research FAQs
How big is the Russia Pouch Packaging Market?
The Russia Pouch Packaging Market size is expected to reach USD 1.24 billion in 2024 and grow at a CAGR of 6.14% to reach USD 1.67 billion by 2029.
What is the current Russia Pouch Packaging Market size?
In 2024, the Russia Pouch Packaging Market size is expected to reach USD 1.24 billion.
Who are the key players in Russia Pouch Packaging Market?
Sonoco Products Company, Uflex Limited, Vakumpak-M, Danaflex Group and OKHTA LLC are the major companies operating in the Russia Pouch Packaging Market.
What years does this Russia Pouch Packaging Market cover, and what was the market size in 2023?
In 2023, the Russia Pouch Packaging Market size was estimated at USD 1.16 billion. The report covers the Russia Pouch Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Russia Pouch Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Russia Pouch Packaging Industry Report
Statistics for the 2024 Russia Pouch Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Russia Pouch Packaging analysis includes a market forecast outlook for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Russia Pouch Packaging Market Report Snapshots
