The 22th Exhibition of equipment, materials and ingredients for food&drink industry
23 - 25 April 2020 • Expograd Yug, Krasnodar, Russia

Key trends in the market of polymer film materials

For Russian manufacturers of plastic wrap, a new market share is opening up, despite the consequences of the economic crisis and stagnation of final consumption.
The key issue in this situation is to overcome old and new restrictions that prevent the use of clear competitive advantages, which would make it possible to force out imports and increase exports. 
Even though 2015 was challenging for the Russian polymer industry, the segment of flexible packaging looked slightly better. It is mainly connected with the decrease in imports due to the food embargo and devaluation of the ruble. In such conditions, Russian packaging manufacturers had an opportunity to increase their share in the market through imports. It is obvious that expanding production is time-consuming and requires investments.

In 2015, several main trends were observed in the market of plastic films: growing demand for packaging that increases the product’s shelf life and enables packing in modified atmospheres; increasing popularity of packaging with programmable properties; thermoformed means of packaging as well as shrink and stretch wraps being in demand. This can be explained by social (desire to lead a healthy lifestyle as well as save time cooking and consuming) and demographic (aging of the population, decline in the number of family members, increase in the number of single people) factors. In addition, the market is affected by the tightening of the environmental requirements for packaging manufacture and use.

In addition, one should not forget that the growth in costs for polymer raw materials, which started in January 2015, became a serious financial burden for packaging manufacturers. Working with clients mainly in the long term, they were unable to raise their prices proportionally.

Producers expect that imports will be gradually decreasing and domestic consumption will be increasing till 2019. Gradual growth in sales of Russian producers in the CIS markets will continue, while Europe will also remain a stable consumer of Russian BOPP films.

Apart from the food and cosmetic industries, plastic films are actively used in agriculture. The main areas of their application are nets, mulching, fumigation as well as haylage, greenhouse and special films and the so-called silo bags. The size of the global market of agricultural films in 2012-2015 grew by 21% and reached almost 4 million tons, while Europe accounted for 16% of said figure. Development of the market is mainly driven by global factors, among which are: the growing world population, decrease in acreage and available water resources as well as soil degradation.