The Russian Packaging Industry - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2015

1 INTRODUCTION

1.1 About this report
1.2 Definitions
1.3 Methodology
  1.3.1 Secondary research
  1.3.2 Primary research
  1.3.3 Conventions
1.4 About Progressive Packaging Intelligence Center

2 EXECUTIVE SUMMARY

3 MARKET ATTRACTIVENESS AND EMERGING OPPORTUNITIES

3.1 Packaging Material Market Size and Forecast
  3.1.1 Packaging industry expected to reach US$22.2 billion by 2015
  3.1.2 Paper and board, and rigid plastic subcategories expected to support packaging industry
3.2 Packaging Industry Market Share and Production Trend Analysis by Subcategory
  3.2.1 Rigid plastic to record fastest growth in the forecast period
  3.2.2 Paper and board to grow at a CAGR of 6.06% during forecast period
  3.2.3 Flexible plastic expected to reach US$3.9 billion by 2015
  3.2.4 Glass packaging will continue to lose market share over the forecast period
3.3 Packaging Machinery Market Size and Forecast
  3.3.1 Russian packaging machinery expected to record steady growth
  3.3.2 Cancellation of import tax on packaging machinery will enhance business dynamics
3.4 Benchmarking with Key Global Markets
  3.4.1 Russian packaging industry’s market size remains competitive compared to the developed markets of Western Europe and the US
  3.4.2 Per capita spend in Russia remains low
  3.4.3 Paper and board packaging market valued at US$4.8 billion in 2010
  3.4.4 Flexible Plastic: US, China and Japan account for 31.6% of the global market; Russia share remains 2.0%
  3.4.5 Market Share of Russia in the rigid packaging segment remains competitive compared to other developed and developing markets
  3.4.6 Russian metal packaging market ranks fourteenth in the top 20 countries globally
  3.4.8 Russia remains high in the global glass packaging market
3.5 End User Market Dynamics
  3.5.1 Demand from pharmaceutical sector will drive growth of packaging industry
  3.5.2 Growth in dairy and cheese market set to drive the growth of flexible plastic and glass packaging
3.6 Market Opportunity: Key Trends and Drivers
  3.6.1 Packaging production capacity increased due to demand and improved business environment
  3.6.2 Food retail demand for premium packaging will increase
  3.6.3 Increase in automation and nanomaterials set to increase production of technology based packaging
  3.6.4 Demand for hi-tech, high value drugs expected to increase demand for nanotechnology packaging

4 PACKAGING IMPORT AND EXPORT MARKET DYNAMICS

4.1 Import Trends
  4.1.1 Glass packaging - imports declined to 11.5% of total consumption in 2010, while exports increased steadily
  4.1.2 Paper and board imports in Russia accounted for 24% of domestic consumption in 2009
  4.1.3 Growth in flexible plastic packaging imports primarily driven by demand from FMCG companies for sophisticated packaging
  4.1.4 German packaging machinery manufacturers accounted for 60% of total imports in 2008–09
  4.1.5 Imports of metal can has declined during review period
4.2 Export Trend
  4.2.1 Glass packaging exports accounted for 2.2% of total production volume in 2009
  4.2.2 Exports of paper and board increased by 4.1% in 2010
  4.2.3 Russian flexible plastic packaging manufacturers focused on domestic market

5 INDUSTRY DYNAMICS

5.1 Five Forces Analysis: Paper and Board Packaging
  5.1.1 Bargaining power of supplier: medium
  5.1.2 Bargaining power of buyer: medium
  5.1.3 Barrier to entry: medium to low
  5.1.4 Intensity of rivalry: medium
  5.1.5 Threat of substitution: low
5.2 Five Forces Analysis: Glass Packaging
  5.2.1 Bargaining power of supplier: medium
  5.2.2 Bargaining power of buyer: medium to high
  5.2.3 Barrier to entry: medium
  5.2.4 Intensity of rivalry: high
  5.2.5 Threat of substitution: medium
5.3 Five Forces Analysis: Metal Packaging
  5.3.1 Bargaining power of supplier: high
  5.3.2 Bargaining power of buyer: low
  5.3.3 Barrier to entry: high
  5.3.4 Intensity of rivalry: low
  5.3.5 Threat of substitution: medium
5.4 Five Forces Analysis: Flexible Plastic Packaging
  5.4.1 Bargaining power of supplier: medium
  5.4.2 Bargaining power of buyer: medium
  5.4.3 Barrier to entry: low
  5.4.4 Intensity of rivalry: high
  5.4.5 Threat of substitution: low
5.5 Five Forces Analysis: Rigid Plastic Packaging
  5.5.1 Bargaining power of supplier: medium
  5.5.2 Bargaining power of buyer: medium
  5.5.3 Barrier to entry: medium
  5.5.4 Intensity of rivalry: medium
  5.5.5 Threat of substitution: medium

6 MARKET ENTRY STRATEGY

6.1 Market Regulation
  6.1.1 Investor friendly regulations attract foreign companies
  6.1.2 New export duty, liberal credit and rigid plastic regulations
  6.1.3 Companies enter market through establishment of manufacturing facilities and acquisitions
6.2 Key Challenges
  6.2.1 Upcoming new recycling law expected to decrease packaging waste

7 COMPETITIVE LANDSCAPE AND STRATEGIC INSIGHTS

  7.1.1 International manufacturers have strong market positioning
  7.1.2 Foreign suppliers dominate packaging machinery market
7.2 Major Domestic Private Companies
  7.2.1 Ilim Group: overview
  7.2.2 Ilim Group: recent announcements and strategic initiatives
  7.2.3 Ilim Group: products and services
  7.2.4 Ilim Group: alliances
  7.2.5 Ilim Group: financial analysis
  7.2.6 OOO Permsky Karton: overview
  7.2.7 OOO Permsky Karton: recent announcements and strategic initiatives
  7.2.8 OOO Permsky Karton: products and services
  7.2.9 OOO Permsky Karton: alliances
  7.2.10 OOO Permsky Karton: financial analysis
  7.2.11 RASKO: overview
  7.2.12 RASKO: recent announcements and strategic initiatives
  7.2.13 RASKO: products and services
  7.2.14 RASKO: alliances
  7.2.15 RASKO: financial analysis
  7.2.16 Retal Industries: overview
  7.2.17 Retal Industries: recent announcements and strategic initiatives
  7.2.18 Retal Industries: products and services
  7.2.19 Retal Industries: alliances
  7.2.20 Retal Industries: financial analysis
  7.2.21 SFT Group: overview
  7.2.22 SFT Group: recent announcements and strategic initiatives
  7.2.23 SFT Group: products and services
  7.2.24 SFT Group: alliances
  7.2.25 SFT Group: financial analysis
7.3 Foreign companies
  7.3.1 Anadolu Cam: overview
  7.3.2 Anadolu Cam: recent announcements and strategic initiatives
  7.3.3 Anadolu Cam: products and services
  7.3.4 Anadolu Cam: alliances
  7.3.5 Anadolu Cam: financial analysis
  7.3.6 Amcor Packaging Russia: overview
  7.3.7 Amcor Packaging Russia: recent announcements and strategic initiatives
  7.3.8 Amcor Packaging Russia: products and services
  7.3.9 Amcor Packaging Russia: alliances
  7.3.10 Amcor Packaging Russia: financial analysis
  7.3.11 Mondi Russia: overview
  7.3.12 Mondi Russia: recent announcements and strategic initiatives
  7.3.13 Mondi Russia: products and services
  7.3.14 Mondi Russia: alliances
  7.3.15 Mondi Russia: financial analysis
  7.3.16 Nordenia: overview
  7.3.17 Nordenia: recent announcements and strategic initiatives
  7.3.18 Nordenia: products and services
  7.3.19 Nordenia: alliances
  7.3.20 Nordenia: financial analysis
  7.3.21 Rexam Russia: overview
  7.3.22 Rexam Russia: recent announcements and strategic initiatives
  7.3.23 Rexam Russia: products and services
  7.3.24 Rexam Russia: alliances
  7.3.25 Rexam Russia: financial analysis
  7.3.26 SCA Packaging Russia: overview
  7.3.27 SCA Packaging Russia: announcements and strategic initiatives
  7.3.28 SCA Packaging Russia: products and services
  7.3.29 SCA Packaging Russia: alliances
  7.3.30 SCA Packaging Russia: financial analysis
  7.3.31 Stora Enso Russia: overview
  7.3.32 Stora Enso Russia: recent announcements and strategic initiatives
  7.3.33 Stora Enso Russia: products and services
  7.3.34 Stora Enso Russia: alliances
  7.3.35 Stora Enso Russia: financial analysis
  7.3.36 Tetra Pak Russia: overview
  7.3.37 Tetra Pak Russia: recent announcements and strategic initiatives
  7.3.38 Tetra Pak Russia: products and services
  7.3.39 Tetra Pak Russia: alliances
  7.3.40 Tetra Pak Russia: financial analysis

8 BUSINESS ENVIRONMENT AND COUNTRY RISK

8.1 Business Confidence
  8.1.1 Market capitalization trend – Russian trading system
  8.1.2 FDI inflows by sector
  8.1.3 Deployment of credit by sector
8.2 Economic Performance
  8.2.1 GDP at constant prices (US dollars)
  8.2.2 GDP per capita at constant prices (US dollars)
  8.2.3 GDP at current prices (US dollars)
  8.2.4 GDP per capita at current prices (US dollars)
  8.2.5 GDP split by key segments
  8.2.6 Agriculture net output at current prices (Russian ruble)
  8.2.7 Agriculture net output at current prices (US dollars)
  8.2.8 Agriculture net output at current prices as percentage of GDP
  8.2.9 Manufacturing net output at current prices (Russian ruble)
  8.2.10 Manufacturing net output at current prices (US dollars)
  8.2.11 Manufacturing net output at current prices as percentage of GDP
  8.2.12 Mining, manufacturing and utilities net output at current prices (Russian ruble)
  8.2.13 Mining, manufacturing and utilities at current prices (US dollars)
  8.2.14 Mining, manufacturing and utilities at current prices, as percentage of GDP
  8.2.15 Construction net output at current prices (Russian ruble)
  8.2.16 Construction net output at current prices (US dollars)
  8.2.17 Construction net output at current prices as a percentage of GDP
  8.2.18 Crude steel production
  8.2.19 Crude oil consumption
  8.2.20 Inflation rate
  8.2.21 Fiscal balance as a percentage of GDP
  8.2.22 Current account balance as a percentage of GDP
  8.2.23 Exports as a percentage of GDP
  8.2.24 Imports as a percentage of GDP
  8.2.25 Exports growth
  8.2.26 Imports growth
  8.2.27 External debt as a percentage of GDP
  8.2.28 Annual average exchange rate US$–RUB
  8.2.29 End of the period exchange rate US$–RUB
  8.2.30 Debt service ratio
8.3 Infrastructure Quality and Availability
  8.3.1 Total airports and sea ports
  8.3.2 Railways and highways
  8.3.3 Passenger vehicle production trend
  8.3.4 Commercial vehicle production trend
  8.3.5 Automotive components export trend
  8.3.6 Automotive components import trend
  8.3.7 Passenger vehicle export trend
  8.3.8 Commercial vehicle export trend
  8.3.9 Passenger car penetration
  8.3.10 Total installed capacity for electricity generation
  8.3.11 Installed capacity for the generation of conventional thermal electricity
  8.3.12 Electricity production
  8.3.13 Installed capacity for the generation of hydro–electricity
  8.3.14 Installed capacity for renewable electricity generation
  8.3.15 Electricity consumption
  8.3.16 Electricity exports
  8.3.17 Electricity imports
  8.3.18 Healthcare expenditure
  8.3.19 Healthcare expenditure as a percentage of GDP
  8.3.20 Healthcare expenditure per capita
  8.3.21 Total internet subscribers
  8.3.22 Broadband internet subscribers
  8.3.23 Personal computer penetration
  8.3.24 Mobile phone penetration rate
  8.3.25 R&D expenditure as a percentage of GDP
8.4 Labor Force
  8.4.1 Labor force
  8.4.2 Unemployment rate
8.5 Demographics
  8.5.1 Annual disposable income
  8.5.2 Annual per capita disposable income
  8.5.3 Annual consumer expenditure on food
  8.5.4 Annual per capita consumer expenditure on food
  8.5.5 Total population
  8.5.6 Urban and rural population
  8.5.7 Female percentage of population
  8.5.8 Male percentage of population
  8.5.9 Mean age of population
  8.5.10 Median age of population
  8.5.11 Population density
  8.5.12 Age distribution of the total population
  8.5.13 Age distribution of the male population
  8.5.14 Age distribution of the female population
  8.5.15 Number of households
8.6 Political and Social Risk
  8.6.1 Political stability
  8.6.2 Terrorism index
  8.6.3 Transparency index

9 APPENDIX

9.1 Contact Us
9.2 About ICD Research
9.3 Disclaimer

LIST OF TABLES

Table 1: Investments by Key Players
Table 2: Market Entry Strategy, Russian Packaging Industry
Table 3: Competitive Landscape, Russian Packaging Industry
Table 4: Competitive Landscape, Russian Packaging Machinery Industry
Table 5: Ilim Group - Alliances
Table 6: Anadolu Cam - Alliances
Table 7: Tetra Pak Russia - Alliances

LIST OF FIGURES

Figure 1: Russian Packaging Industry Market Size, Historic and Forecast (US$ Billion), 2006–15
Figure 2: Russian Packaging Industry Market Share by Packaging Material Subcategory (US$ Billion), 2010 and 2015
Figure 3: Russian Packaging Machinery Market Size and Forecast (US$ Million), 2006–15
Figure 4: Benchmarking with Key Global Markets – Market Size (US$ Billion) 2010 vs. 2015
Figure 5: Top Global Markets by Future Packaging Industry Growth (%), 2011–15
Figure 6: Packaging Per Capita Expenditure by Key Countries (US$), 2010 and 2015
Figure 7: Paper and Board Packaging Market by Country as a Percentage of the Global Market (%), 2010
Figure 8: Flexible Plastic Packaging Market by Country as a Percentage of the Global Market (%), 2010
Figure 9: Rigid Plastic Packaging Market by Country as a Percentage of the Global Market (%), 2010
Figure 10: Metal Packaging Market by Country as a Percentage of the Global Market (%), 2010
Figure 11: Glass Packaging Market by Country as a Percentage of the Global Market (%), 2010
Figure 12: Russian Pharmaceutical Market Size (US$ Billion), 2006–15
Figure 13: Russian Glass Packaging Imports as Percentage of Total Consumption (%), 2006–15
Figure 14: Russian Paper and Board Imports (Million Metric Tons), 2006–15
Figure 15: Russian Paper and Board Exports (Million Metric Tons), 2006–15
Figure 16: Paper and Board Industry Dynamics - Porter’s Five Forces Analysis
Figure 17: Glass Industry Dynamics - Porter’s Five Forces Analysis
Figure 18: Metal Industry Dynamics - Porter’s Five Forces Analysis
Figure 19: Flexible Plastic Industry Dynamics - Porter’s Five Forces Analysis
Figure 20: Rigid Plastic Industry Dynamics – Porter’s Five Forces Analysis
Figure 21: Anadolu Cam - Revenue Trend Analysis for FY 2005–09
Figure 22: Mondi Russia - Revenue Trend Analysis for FY 2006–09
Figure 23: Russian Trading System – Market Capitalization (US$ Billion), 2003–09
Figure 24: Russian FDI Inflows by Sector (US$ Billion), 2003–09
Figure 25: Russian Deployment of Credit by Sector (US$ billion), 2003–09
Figure 26: Russian GDP at Constant Prices (US$ Billion), 2003–15
Figure 27: Russian GDP Per Capita at Constant Prices (US$), 2003–15
Figure 28: Russian GDP at Current Prices (US$ Trillion), 2003–15
Figure 29: Russian GDP Per Capita at Current Prices (US$), 2003–15
Figure 30: Russian GDP Split by Key Segments (%), 2003 and 2009
Figure 31: Russian Agriculture Net Output at Current Prices (RUB Trillion), 2003–15
Figure 32: Russian Agriculture Net Output at Current Prices (US$ Billion), 2003–15
Figure 33: Russian Agriculture Net Output at Current Prices as Percentage of GDP (%), 2003–15
Figure 34: Russian Manufacturing Net Output at Current Prices (RUB Trillion), 2003–15
Figure 35: Russian Manufacturing Net Output at Current Prices (US$ Billion), 2003–15
Figure 36: Russian Manufacturing Net Output at Current Prices as a percentage of GDP (%), 2003–15
Figure 37: Russian Mining, Manufacturing and Utilities Net Output at Current Prices (RUB Trillion), 2003–15
Figure 38: Russian Mining, Manufacturing and Utilities Output at Current Prices (US$ Billion), 2003–15
Figure 39: Russian Mining, Manufacturing and Utilities Net Output at Current Prices as a Percentage of GDP (%), 2003–15
Figure 40: Russian Construction Net Output at Current Prices (RUB Trillion), 2003–15
Figure 41: Russian Construction Net Output at Current Prices (US$ Billion), 2003–15
Figure 42: Russian Construction Output at Current Prices as Percentage of GDP (%), 2003–15
Figure 43: Russian Crude Steel Production (Million Metric Tons), 2003–15
Figure 44: Russian Crude Oil Consumption (Million Tons), 2003–15
Figure 45: Russian Inflation Rate (%), 2003–15
Figure 46: Russian Fiscal Balance as a Percentage of GDP (%), 2003–15
Figure 47: Russian Current Account Balance as Percentage of GDP (%), 2003–2009
Figure 48: Russian Exports as a Percentage of GDP (%), 2003–15
Figure 49: Russian Imports as a Percentage of GDP (%), 2003–15
Figure 50: Russian Exports Growth (%), 2003–15
Figure 51: Russian Imports Growth (%), 2003–2015
Figure 52: Russian External Debt as a Percentage of GDP (%), 2003–09
Figure 53: Russian Annual Average Exchange Rate US$–RUB, 2003–09
Figure 54: Russian End of the Period Exchange Rate US$–RUB, 2003–09
Figure 55: Russian Debt Service Ratio (%), 2003–09
Figure 56: Russian Airports and Sea Ports (Number of), 2009
Figure 57: Russian Railways and highways (Kilometers), 2009
Figure 58: Russian Passenger Vehicle Production (Million), 2003–15
Figure 59: Russian Commercial Vehicle Production (Units), 2003–15
Figure 60: Russian Automotive Components Exports (US$ Billion), 2003–15
Figure 61: Russian Automotive Components Imports (US$ Billion), 2003–15
Figure 62: Russian Passenger Vehicle Exports Volume (Units), 2003–15
Figure 63: Russian Commercial Vehicle Exports Volume (Units), 2003–15
Figure 64: Russian Passenger Car Penetration (per 1000 people), 2003–15
Figure 65: Russian Total Installed Capacity for Electricity Generation (Million Kilowatts), 2003–15
Figure 66: Russian Installed Capacity for the generation of Conventional Thermal Electricity (Million Kilowatts), 2003–15
Figure 67: Russian Electricity Production (Billion Kilowatt Hours), 2003–15
Figure 68: Russian Installed Capacity for the Generation of Hydro–Electricity (Million Kilowatts), 2003–15
Figure 69: Russian Installed Capacity for the Generation of Renewable Electricity (Million Kilowatts), 2003–15
Figure 70: Russian Electricity Consumption (Billion Kilowatt Hours), 2003–15
Figure 71: Russian Electricity Exports (Million Kilowatt Hours), 2003–15
Figure 72: Russian Electricity Imports (Million Kilowatt Hours), 2003–15
Figure 73: Russian Healthcare Expenditure (US$ Billion), 2003–15
Figure 74: Russian Healthcare Expenditure as a Percentage of GDP (%), 2003–15
Figure 75: Russian Per Capita Healthcare Expenditure (US$), 2003–15
Figure 76: Russian Internet Subscriptions (Millions), 2003–15
Figure 77: Russian Broadband Internet Subscriptions (Million), 2003–15
Figure 78: Russian Personal Computer Penetration Rate (per 100 people), 2003–15
Figure 79: Russian Mobile Phone Penetration (%), 2003–15
Figure 80: Russian R&D Expenditure as a Percentage of GDP (%), 2003–15
Figure 81: Russian Size of Labor Force in 15–59 age group (Million), 2003–15
Figure 82: Russian Unemployment Rate (%), 2003–15
Figure 83: Russian Annual Disposable Income (US$ Trillion), 2003–15
Figure 84: Russian Annual Per Capita Disposable Income (US$), 2003–15
Figure 85: Russian Consumer Expenditure on Food (US$ Billion), 2003–15
Figure 86: Russian Annual Per Capita Consumer Expenditure on Food (US$), 2003–15
Figure 87: Russian Total Population (Million), 2003–15
Figure 88: Russian Urban and Rural Population (%), 2003–2015
Figure 89: Russian Female as Percentage of Population (%), 2003–15
Figure 90: Russian Male as Percentage of Population (%), 2003–15
Figure 91: Russian Mean Age of Population (Years), 2003–15
Figure 92: Russian Median Age of Population (Years), 2003–15
Figure 93: Russian Population Density (per Square Kilometer), 2003–15
Figure 94: Russian Population Distribution by Age(%), 2003–15
Figure 94: Russian Male Population Distribution by Age (%), 2003–15
Figure 96: Russian Female Population Distribution by Age (%), 2003–15
Figure 97: Russian Households Number of (Million), 2003–15
Figure 98: Global Terrorism Heat Map, 2009
Figure 99: Russian Transparency Index, 2003–09

COMPANIES MENTIONED

Ilim Group, OOO Permsky Karton, RASKO, Retal Industries, SFT Group, Anadolu Cam, Amcor Packaging Russia, Mondi Russia, Nordenia, Rexam Russia, SCA Packaging Russia, Stora Enso Russia, Tetra Pak Russia