+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

Russia Glass Packaging Market - Growth, Trends, COVID-19 Impact, and Forecast(2022 - 2027)

  • PDF Icon


  • 120 Pages
  • January 2022
  • Region: Russia
  • Mordor Intelligence
  • ID: 5528977

The Russia glass packaging market is expected to register a CAGR of 3.21% during the forecast period of 2021-2026. The Russian glass industry provides a range of glass packaging products for food and beverage and perfumery, cosmetics, and pharmacy to customers. The new rules for sustainability and recyclability in the region are also prominent factors pushing the growth of glass packaging in the region. The European Union targets recycling 75% of the packaging waste by 2030 as part of the Circular Economy Package.

Key Highlights

  • The recovery trend of the Russian economy is providing several growth prospects for a number of industries, like food processing and other indigenous industries, subsequently fostering growth for the glass bottle and container industry. Additionally, the ban on the import of food from a number of countries, coupled with the Russian government’s import substitution policy, has created a situation where the Russian food industry is expected to continue to expand in a favorable competitive environment, incentivizing investment in modern technology for processing and packaging. In terms of players, Aktis is one of the largest glass container factories in Russia.
  • The capacity of Aktis is 1.4 billion units of glass containers per year. Also, Ruscam-Ufa operates a glass bottle plant in Ufa, the capital of the Republic of Bashkortostan in central Russia. The company produces and supplies lightweight, disposable glass bottles to the alcoholic beverages and food industry. The facility has three furnaces with a combined glass melt capacity of 360,000mt a year. The Ufa glass plant is the third facility operated by Anadolu Cam in Russia, the other two being the Ruscam Gorokhovets plant in Vladimir and the Ruscam Pokrovsky plant in Volodga. Further, taking advantage of the recent economic surge in Russia, major players like Sidel have started opening offices in the country. According to Sidel, more than 700 pieces of packaging equipment have been installed in the region, and this growth is being driven by the growth of packaging needs in food, beverage, and personal care production.
  • The Russian alcoholic beverage industry witnessed the strongest demand for glass bottles and containers. Russia is the fourth largest alcohol-consuming nation in the world. According to the statistics offered by the Analytical Center for the Government of the Russian Federation, beer was the most sold alcoholic beverage in Russia, with over 5 billion liters in retail sales from January to October 2020. Sales of vodka fell in 2020 compared to the previous equivalent period. Nonetheless, it was the third most sold alcoholic beverage countrywide. Cognac accounted for over 920 million liters in sales from January to October 2020. With glass packaging being a primary packaging material for alcoholic beverages, the market for glass packaging can be expected to grow at a healthy rate in this region.
  • Despite the fact that Russians are internationally acknowledged for their predilection for vodka, statistical data by VCIOM (Russian Public Opinion Research Center) reveals that it is not the most consumed alcoholic beverage in the country. As it turns out, Russians drink sizably more amount of beer than vodka. The retail sales of beer in the first ten months of the year 2020 amounted to roughly 5.1 trillion liters countrywide, while the sales volume of vodka was measured at about 596 million liters over the same period. With the increasing consumption of beer, the demand for glass packaging caters to significant demand.
  • According to the Russian government, waste at Russian landfills generally is composed of 34% food, 19% paper, 14% polymers, 12% glass, 6% wood, 6% street waste, 4% metal, 3% textile, 2% other. The government policy includes increasing the processing of municipal waste from 10% in 2018 to 80% by 2030 and building 200 waste processing installations; Also, Increasing the recycling of packaging and waste by producers to 10-30% has been aimed.

Key Market Trends

Bottles are Expected to Hold a Major Market Share

  • Glass bottles are extensively used for the packaging of medicinal drugs in the pharmaceutical industry. Glass bottles are manufactured to meet a variety of tolerance limits because they are often filled in high-speed lines. Glass is being considered as a viable alternative as its impacts on humans and the environment are much less compared to polyethylene terephthalate (PET), making it an environment-friendly packaging medium.
  • The returnable bottles are being preferred by consumers, which is also a major factor encouraging the beverage companies to adopt them. In June 2021, Gerolsteiner announced that it is planning to launch its Light Soda in returnable glass as the company witnessed the highest sales and turnover with the glass bottles for water (11% in 2020 compared to 2019).
  • Vendors, as well as beverage companies, are developing lightweight and durable bottles to compete with other alternatives. Concepts, such as permanent engravings on containers, are being practiced to avoid counterfeiting. The engravings are being used to display the quarter and year of manufacturing. Glass bottles are also being produced at the lowest possible weights with the help of advanced ‘blow-low and NNPB technologies, which may prove to be an added advantage for logistics. Such innovations and advantages of glass bottles and containers are expected to drive the demand and positively affect the market.
  • Glass bottles are also largely recyclable, giving them a positive image in the market. Manufactured glass bottles are regularly tested to check for the presence of mold and yeast count, among other bacterial presences. Players in the market are making various investments to ensure the quality of glass bottles. For instance, Bionorica, a manufacturer of herbal medicines, worked with Romaco, a manufacturer of packing and process technology, to develop a simple, space-saving inspection unit named Spectra for monitoring empty bottles. This may prevent damage to the filling machine due to faulty bottles.
  • Furthermore, the Close the Glass Loop platform is also involving most of the players from the bottle-to-bottle loop from consumers, customers, retailers to municipalities, recyclers, and manufacturers in a collaborative effort to collect, sort, and treat the glass.

The Liquor Segment to Witness High Market Growth Rate

  • Wine sales and consumption have grown manifolds during the COVID-19 pandemic, and while most of the wines sold are packaged in the standard 750-milliliter format, alternatives are on the rise, such as small format bottles.
  • Glass is among the most preferred packaging material for packaging alcoholic beverages, such as spirits. The ability of glass bottles to preserve the aroma and flavor of the product is driving the demand.
  • Various vendors in the market studied are also observing the increasing demand from the spirit industry. For instance, Piramal Glass, whose clients include Diageo, Bacardi, and Pernod Ricard, mentioned that it sees an increase in the demand for short-run specialty bottles for spirits.
  • Furthermore, the logistics aspect of the liquor packaged in glass bottles is challenging the growth. As glass is comparatively more cumbersome and prone to breakage during transport, increasing the chances of goods loss, however, vendors are trying to innovate the packaging aspect of glass bottles as well. For instance, Nakpack is providing systems specific to wine glass bottle packaging safety, allowing a single model of packaging to be used with various bottle types and formats.
  • More and more liquor manufacturers are becoming conscious of the use of recycled materials in their packaging and increasing the percentage of recycled glass used in their bottles. For instance, Absolut has vowed to minimize the packaging waste with the launch of a limited-edition design made from 41% of recycled glass.

Competitive Landscape

The Russian Glass Packaging Market is moderately competitive and comprises several major players. In terms of market share, few of the major players currently dominate the market. With a prominent share in the market, these major players are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability.

December 2020 - Verallia Packaging SAS joined the Ellen Macarthur foundation's network to help quicken the progress across the company's three working areas of accelerating innovation in the glass value chain, encouraging reuse, and mobilizing for more recycled glass. The collaboration represents an opportunity for the company to work with leading thinkers and all partners right across the value chain to drive the transition to the circular economy of glass.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of COVID-19 Impact on the Market
5.1 Market Drivers
5.1.1 Rapid Shift Towards Sustainable Packaging Due to Stringent Regulations
5.1.2 Growing Adoption of Premium Glass packaging in End-user Industries such as Beverage and Cosmetics
5.2 Market Restraints
5.2.1 Alternative Forms of Packaging is Challenging the Market Growth
6.1 By Product Type
6.1.1 Bottles
6.1.2 Ampoules
6.1.3 Vials
6.1.4 Syringes
6.1.5 Jars
6.1.6 Other Product Types
6.2 By End-User Industry
6.2.1 Beverage Liquor Beer Soft Drinks Other Beverages
6.2.2 Food
6.2.3 Cosmetics
6.2.4 Pharmaceutical
6.2.5 Other End-user Industries
7.1 Company Profiles
7.1.1 APG Europe
7.1.2 Verallia Packaging SAS (Horizon Holdings II SAS)
7.1.3 Ardagh Packaging Group PLC
7.1.4 WestPack
7.1.5 Amcor Ltd.