Overview of the market equipment for the manufacture of cardboard packaging. Features of the modern Russian market of packaging equipment
In this article:
The Russian packaging market depends on the following macroeconomic indicators:
- Retail turnover;
- The volume of food production;
- General index of industrial production.
In 2011, the container and packaging market in Russia grew by 11%.
The structure of the packaging and container market in Russia is shown in Photo 1.
The largest market share is occupied by packaging made of cardboard and paper. This is due to the fact that cardboard is actively used in logistics, high demand for goods in this segment from the leading manufacturers of food, pharmaceutical and perfumery products.
The high capacity of the polyethylene products market is explained by the high demand for polypropylene, resins and polymers. In 2010, the polyethylene packaging market showed growth. It should be noted that this segment of the market has a high potential. Carton market
In 2010, the carton packaging market grew by 7%, and in 2011 by 5%. A slight increase in the production of cardboard packaging is explained by the saturation of the market at this stage of development.
But domestic manufacturers cannot fully saturate the carton packaging market, and in this regard, there is an increase in the volume of imported products by 5%.
In 2010, there was also an increase in prices for cardboard products, which amounted to 30%. The increase in prices was due to changes in the cost of raw materials and the growing demand for carton packaging.
The production of cardboard packaging in Russia is carried out both by specialized enterprises and by printing houses that produce advertising materials, magazine and book products, and other printing products.
The structure of production of cardboard packaging by enterprises for 2011 is shown in photo 2.
Corrugated board market
In 2011, the capacity of the corrugated board market in physical terms amounted to 1.8 billion square meters. m, and an increase of 2%. After reviewing the packaging market, it was found that corrugated cardboard is mainly produced in the Central Federal District of Russia, its capacity in the manufacture of these products is 79%, followed by the Southern Federal District - 7%.
The structure of production of corrugated packaging by enterprises for 2011 is shown in Photo 3.
In recent years, the cost of corrugated cardboard packaging has increased by 23%, in 2011 the average price was 19.64 rubles per 1 m 2 of products. In the same year, 33.3 million m 2 of corrugated products were exported. About 3% of the volume of exported products is re-export. In 2011, CJSC Gotek was the leading exporter of Russian corrugated products, its share of goods was 14.4%.
The structure of exports of corrugated board products by enterprises for 2011 is shown in photo 4.
Plastic packaging market
In 2010, the volume of the plastic packaging market increased by 20%. This segment of the market is the most knowledge-intensive and therefore in the coming years the trend towards its increase will continue. Leading manufacturing companies will implement scientific and technical developments in order to produce flexible, elastic and durable packaging.
The structure of the global flexible packaging market confirms that polymer products are beginning to displace paper and cardboard products. In recent years, the capacity of the plastic packaging segment in the global market has increased by 50%. Plastic packaging occupies the largest niche (38%) in the consumer market for polymer products in Europe and in the US thermoplastic market (29%).
Today, the leading segments of consumers of plastic packaging can be distinguished - companies producing confectionery, semi-finished meat products, cakes, salads, ice cream manufacturers, and retailers.
Prospects for the packaging market
The packaging market in Russia shows positive dynamics and this trend will continue in subsequent years. The market of polymer products is developing most actively. This segment of the market can be considered the most promising.
But, despite this, the market of cardboard and corrugated cardboard occupies the largest share of the packaging market. The demand for cardboard packaging will not decrease, because corrugated cardboard is an environmentally friendly material. And compared to polymer products, glass containers, it causes minimal harm to the environment. Cardboard packaging degrades quickly in the environment and requires little energy to recycle.
Trends in the world and the Russian Federation
The main trend in the world market of cardboard and corrugated cardboard is the rise in product prices. Let's name the reasons. Firstly, this was due to the increase in prices for raw materials for the production of products - wood pulp (in the total cost of the final product, the share of raw materials is gradually approaching 75%), which was caused by a growing shortage of cellulose in the world market due to an increase in demand for products from it developing countries: the consumption of packaging materials and papers is growing in line with the growth of economies.
China is the largest consumer of cardboard and corrugated packaging materials. Considering the scale of this market, it can be said that the global market for cardboard and corrugated cardboard packaging is dependent on how the production and demand for cardboard and corrugated cardboard develop in China.
With growing demand for products in the domestic market of China and limited supply, demand for imported cardboard and corrugated board is growing. At the same time, the Chinese market is becoming more and more attractive, as the national currency strengthens its position: the yuan against the dollar has been showing stable growth since the beginning of the year. Deliveries from European countries to China are growing, which leads to a shortage of products and an increase in prices for other foreign markets, including Russia.
In addition, the process of pulp and paper industry restructuring continues in China: a state program is currently being implemented to eliminate obsolete paper and cardboard production facilities (technologically backward and non-environmentally friendly small and medium-sized enterprises). Thus, the limited number of manufacturers and significant domestic demand for corrugated board products contribute to the domestic price increase in China, which ultimately affects the global price level.
Rising prices for cardboard and corrugated cardboard are also observed in the Russian market. In addition to rising prices for raw materials, it is caused by an increase in the costs of manufacturers for servicing imported equipment and unfavorable lending conditions.
In addition to this, let's say that in 2017 the government introduced a standard for manufacturers of packaging made of cardboard and corrugated cardboard to obligately recycle packaging or pay an environmental fee. In 2018, the Ministry of Industry and Trade and the Ministry of Natural Resources doubled the standard for recycling packaging and corrugated cardboard products to 40% of the total production (previously the standard was 20%). Such an increase in disposal standards could lead to unplanned increases in costs for producers, which can lead to higher prices for end products.
Russian market of packaging materials made of cardboard and corrugated cardboard
In general, the market for packaging products made of cardboard and corrugated board has a fairly stable upward trend, with the exception of 2015, when there was a decline due to the unstable situation in the economy.
The food industry accounts for the largest share of carton packaging consumption. Against the backdrop of counter-sanctions imposed on imported food products and import substitution in the food industry, as a result of recovery processes in the Russian economy, the demand for cardboard packaging in 2016 increased by 18%. In 2017, the market volume amounted to about 4,613.1 thousand tons, which is 13.4% higher than the level of the previous year.
The carton packaging market has a wide range of products, therefore, despite a significant volume of exports (791.6 thousand tons in 2017), imports also have a significant impact on the Russian market, especially in the most expensive segments. The share of imported products in 2017 amounted to 16.3%.
Figure 1. The volume of the market for packaging materials from cardboard and corrugated cardboard in 2013-2017, thousand tons
Source: Rosstat data, Federal Customs Service, IndexBox analytics
Figure 2. Market volume of packaging materials made of cardboard and corrugated cardboard in 2013-2017, billion rubles
Production
The production of cardboard and corrugated cardboard packaging in 2017 increased compared to the previous year (+12.3%) and amounted to 4,651.9 thousand tons. The reason for the growth in production is the implementation of investment projects to modernize and increase production capacities against the backdrop of a general increase in processing wood.
The slowdown in growth rates in 2015 to +2.8% was primarily due to a decrease in domestic consumption during the crisis period. The main growth factor for domestic producers remains competitiveness in foreign markets - on average, about 17-20% of manufactured products are shipped abroad. Full utilization of production capacities and active increase in output allows manufacturers to increase export deliveries.
Source: Rosstat data, IndexBox analytics
Figure 3. Volume of production of packaging materials from cardboard and corrugated cardboard in 2013-2017, thousand tons
Localization of the production of packaging materials from cardboard and corrugated cardboard gravitates towards the main timber industry complexes of the country. In the structure of production in the Federal District, about 47% is occupied by enterprises of the North-Western Federal District, the largest of which are leaders in the domestic market (subdivisions of Ilim Group JSC, ARKHANGELSK PPM JSC, MONDI SLPK JSC, INTERNATIONAL PAPER CJSC ).
Foreign trade operations
Import deliveries of packaging materials made of cardboard and corrugated cardboard have shown growth since 2016. In 2017, the volume of imports amounted to about 752.9 thousand tons, which is 10.6% more than in 2016. The increase in the volume of import deliveries was due to the growth of imports of containerboard.
The packaging industry occupies one of the most important places in the world economy in the global economy. In developed countries, the packaging business is one of the largest both in terms of production and employment in it. The sphere of packaging has a great influence on the quality of life of the population, and its condition can largely serve as a criterion for assessing the economic and social development of the country. During the first decade of the 21st century, the global container and packaging market grew at an average rate of 4.5%, in 2010 it exceeded $580 billion and, according to industry experts, reached $600 billion in 2011. Despite the fact that this growth was somewhat less than the growth of world GDP as a whole, the market grew steadily and constantly - even the financial crisis only led to a decrease in the average annual growth rate to 3.5%, and already in 2010 there were signs of a recovery in the market.
The determining factor in the development of the market is the growth of markets for consumer goods of daily demand (FMCG). The main segment is food (both food and drinks), the share of which has grown to almost 60% over the decade. It is worth noting that part of this growth was due to a decrease in the consumption of packaging in the industry, the share of which was declining at the end of the decade.
Paper and cardboard packaging continues to be the most widespread in the world market, although its share has declined by about 1 percentage point over the decade. The second place is taken by polymer and plastic packaging, and the share of the latter has increased significantly over the decade, and recently it has been the most actively developing market segment. Then glass packaging, the share of which is 14%. Fourth place metal packaging. In the structure of the world market in value terms, it has lost about 2% over 6 years. The share of flexible plastic packaging in 2010 was about 12%, but continues to decline due to its lower growth rate (see Appendix A).
The largest container and packaging market during its entire existence, as such, remains the United States.
Let us consider the dynamics of the container and packaging market using the example of Russia, since The Russian market is also one of the most dynamically developing. Its dynamics is directly related to the situation in consumer industries - primarily in the food industry, which accounts for about 50% of the packaging market in general and 70% of the consumer packaging market (see Appendix B, C for the significance of packaging by industry and dynamics) .
The Market Analytics company gave the following estimates of the Russian packaging market for 2004-2009 (unfortunately, data for 2012-2013 was not found):
Graph 1 - Estimates of the Russian packaging market 2004-2009
In 2012, the volume of Russian production of cardboard packaging amounted to 5.08 million tons, which is 390% higher than in 2011 (see Appendix D). In 2012, the volume of imports of cardboard and paper containers and packaging amounted to $611.5 million in value terms. In the import structure, the largest share is occupied by the commodity group “cardboards, boxes and boxes made of non-corrugated paper or cardboard”. In 2012, in volume terms, the share of this commodity group in the volume of imports was 18%.
According to the results of January-June 2012, the volume of Russian production of cardboard packaging amounted to 764.23 thousand tons, which is 26% higher than the level of the same period in 2011, when domestic manufacturers produced 608 thousand tons of cardboard packaging (see Appendix E) .
According to the results of 2006, the capacity of the Russian container and packaging market amounted to 57.7 million tons or $25.3 billion, and by 2008 these figures increased to 70 million tons and $30 billion, respectively (see Appendix E).
It is interesting to consider the relationship between consumer and industrial containers/packaging. In recent years, this ratio has been changing: for example, the share of consumer packaging that is sold together with the product directly to the final consumer, 10 years ago, was only about 10% of the total market. The consumption of packaging by manufacturing enterprises was disproportionately higher. However, by 2005 the situation had changed, and the share of consumer packaging had already reached 20-22%, and now it is about 50%. This is due to the growing attention of suppliers of various products to the goods in individual packaging. Such packaging is becoming more and more, as it is one of the factors that increase the competitiveness of products. So, for example, a few years ago bread was mainly sold without packaging, and now it is sold mainly in polyethylene.
The consumer packaging market has a higher growth rate than the packaging market as a whole. If, according to experts, the most likely annual growth rate for the packaging market as a whole is 10-12% in value terms, then for the consumer packaging market this figure is already about 15-16%. In 2008, the market capacity of consumer tare and packaging exceeded the figures for 2003 by more than 2 times (see Appendix B).
Considering the volume of imports of tare/packaging in physical and value terms, it can be noted that at present demand is almost completely satisfied by domestic production. Imports account for only 3.2 and 1.1% of all tare and packaging presented on the Russian market in value and physical terms, respectively. These shares are unlikely to increase in the coming years.
At the same time, as the analysis of data from the State Customs Committee (SCC) shows, Russian imports of packaging materials still significantly exceed exports. Domestic producers already almost completely provide the domestic market, but they are not yet very widely represented in the markets of neighboring countries. The main deliveries are made to Kazakhstan and Ukraine - respectively, in the amount of 30-40 and 20-25 million dollars a year. Russian packaging is also supplied to Azerbaijan, Uzbekistan and Germany - annually 3-5 million dollars to each of these countries.
In 2003, there was a significant increase in the volume of exports of Russian packaging materials in physical terms (see Appendix D). This was due to the outstripping pace of development of the industry in Russia, compared with importing countries. Then, in 2004, exports fell slightly, and in 2005 they were back at the 2003 level. As for the volume of exports in value terms, it increased until 2004, and in 2004-2005 it stabilized (see Appendix D). Some decrease in the volume of exports in 2004 is explained by the increase in packaging prices. However, in 2005 the cost of supplied products was already lower, which is the reason for the restoration of the volume of deliveries.
Also, it should be noted that various packaging problems have recently attracted more and more public attention in the leading countries of the world. The main of these problems include the following:
- 1. Excessive cost of packaging. The criticism of the cost of packaging is related to the fact that it is the reason for the increase in the price of the goods, that it is not uncommon for the cost of packaging to exceed the value of the goods contained in it, that the outer packaging is usually designed for one-time use and is intended "for disposal".
- 2. Reflection of truth on packaging and labeling. This group of problems includes, in particular, inconsistency in the sizes and forms of packaging, in indicating the shelf life and shelf life of products; the presence of false and misleading information when indicating the price, grade, as well as the percentage composition of the main components. In this regard, in the United States, for example, back in 1996, the Law on the Reflection of Truth on Packaging and Labeling of Goods was adopted.
- 3. Pollution of the environment, for example, according to American experts, about 40% of all solid waste in the United States is discarded packaging, which creates a problem of solid waste disposal, which costs a lot. In Russia, this figure is about 20%. Even more acute is the issue of creating environmentally friendly packaging.
- 4. Use of scarce resources. Packaging is often made from materials in which there is a shortage (paper, wood, aluminum, etc.), with an unjustified waste of energy resources in the face of a constant increase in the cost of energy carriers. This applies, for example, to the production of non-circulating glass containers.
Leaders in the global packaging market
The global packaging industry is highly fragmented, with about 100,000 companies and 5 million employees. The 100 largest companies account for no more than 45% of the industry's turnover, while the top 20 companies account for 25%.
A quarter of the top 100 companies have packaging as part of their business; they also produce raw materials for packaging, thus obtaining a higher added value. These are representatives of the timber and pulp and paper industries of the International Paper Company, Weyerhaeuser Company, Georgia-Pacific Corporation, and others; manufacturers of aluminum and aluminum products -- Alcan and Alcoa; manufacturers of glass and building materials, the largest of which is the Compagnie de Saint-Gobain.
Another group is formed by companies producing both packaging and equipment for its production. This is the Tetra Pak Group, which is part of the Tetra Laval holding, Toyo Seikan, Kloeckner, SIG Holding, and others.
Of the consumers of packaging products, its production in significant volumes is carried out only by the American beer giant Anheuser-Busch, which is not only the largest producer of aluminum cans, but also the largest processor in the world. Serious assets in the packaging industry are owned by printing companies - for example, Toppan Printing, M-real, Bemis.
There are more than 50 companies in the packaging industry with sales in excess of $1 billion, 60% of which are American firms.
According to the TP-index, the industry looks like a "stable middle peasant", reproducing the values of most companies in the real economy. Like other "manufacturing" lines of business, companies in the packaging industry are noticeably behind the median of the Fortune-500 rating, the top values of which are formed by financial and insurance institutions.
The industry leader in terms of TP-index is Swedish Tetra Pak, a pioneer in the development of unique packaging technologies. Following him - Amcor Limited. They are followed by a group of companies specialized in the production of the trendy plastic food packaging (see Appendix I).
The slowdown in the economy has not yet affected the production of cardboard packaging, although this may happen soon enough. Monthly dynamics of its production almost throughout 2015 had positive values y/y, and even in the first months of 2016 remained positive.
The production of cardboard packaging of all types has been continuously growing since 2012. In 2015, a decline in production compared to the previous period was recorded based on the results of only 4 out of 12 months. According to research, with the cumulative increase in output was almost 8.1%.
At the same time, in reality, the situation on the carton packaging market is far from rosy. Although many projects for the production of cardboard and cardboard packaging have been introduced in Russia, the situation of consumers has deteriorated sharply. IndexBox specialists note a drop in freight traffic, as well as a drop in demand for most goods from the population: real incomes of the population in 2016 decreased by 3.9% y/y and continue to decline. Retail trade turnover fell by almost 10% last year. An additional negative impact on the market is the rise in prices for waste paper. Thus, on the face of "scissors" - an increase in cost combined with a contraction of effective demand.
Dynamics of cardboard packaging production in Russia
The volume of production of cardboard packaging in value terms repeats the dynamics of production in physical terms. In the first quarter of 2016, it had a more pronounced growth, increasing by 23% y/y.
The volume of production of cardboard packaging in Russia
Among the varieties of cardboard packaging, the main volume of production falls on corrugated cardboard packaging: in 1 sq. In 2016, more than 1 billion square meters were produced. m of such packaging, which is 85.2% of the total volume of production in physical terms. Compared to the beginning of 2015, the share of corrugated packaging has slightly increased, as it is cheaper and in greater demand.
In the structure of production by types of packaging, boxes account for the most (almost half), boxes are in second place (10%), packs account for 6.7%.
Production of cardboard packaging by product categories
Among the most important enterprises of the industry, we can single out: GOTEK CJSC, which has an enterprise throughout Russia, GOFRON CJSC from the Moscow Region, PACKAGING KUBAN CJSC from the Krasnodar Territory, REMOS-ALFA LLC from the Leningrad Region, PEF SOYUZ OJSC "from Moscow and others. An important role in the development of the industry is played by JSC APPM from the Arkhangelsk region, JSC NABEREZHNOCHELNINSKY KBK from Tatarstan, engaged in the production of commercial corrugated cardboard.
Carton packaging market in Russia: production geography
The largest volume of production among all federal districts falls on the Central Federal District: in 1 square. 2016, 566 million square meters were produced there. m of cardboard packaging, which is 47% of the total volume. In second place with a share of 17.3% is the Volga Federal District, in third - the North-West (14.6%). Compared to the beginning of 2015, the composition of the leaders remained virtually unchanged. The stable distribution of shares in the total volume of production shows a uniform intra-annual use of capacities in all federal districts.
In the medium term, moderate dynamics in the development of the timber industry is expected. The volume of production of wood and products of its processing is determined by the existing internal and external demand for the products of the Russian timber industry complex. According to the estimates of the Ministry of Economic Development, it is generally inferior to foreign counterparts due to outdated, environmentally unsafe technologies and a high level of moral and physical depreciation of fixed assets. In this regard, most often, quality standards are not maintained, resource intensity and energy intensity of production increase.
Currently, the forest industry is characterized by a lack of capacity for the production of products of deep processing. At the same time, the reserves of these capacities at operating enterprises are practically exhausted.
At the same time, experts do not yet expect a cardinal change in the situation. According to the same MED, the volume of investments in wood processing and the production of wood products in 2018 should be about 111.5% compared to 2014. And the volume of investments in pulp and paper production is only 93.6%.
The great investment attractiveness of wood processing is due to the underinvestment of this industry in 2009-2010, as well as the higher risks of implementing pulp and paper projects.
The modern packaging industry is a fairly new phenomenon in Russia. Throughout the 1990s. The Russian packaging market has grown along with consumer markets, and strong macroeconomic trends since 2000 have created a thriving market with an annual growth rate of 10-12%. In 2008, the packaging market crossed the $20 billion mark and, according to the unanimous opinion of analysts, strong growth will continue in the period from 2009 to 2009.
Today, paper and cardboard packaging dominate the Russian market, and their share is rapidly increasing. Plastic, glass and metal retain smaller proportions, while wooden packaging is extremely rare [see below]. Table 1]. With the development of the Russian packaging market, it is likely that plastic will play an increasingly important role.
Table 1
Russian packaging market
Today, Russia owns only 2% of the global packaging industry's productivity level. This is not enough to meet the growing domestic demand, but investment in this industry is active, the prospects for the future seem clear. According to expert data, Russian packaging manufacturers are investing in modern technologies and improving the functionality of graphic tools. Between 2002 and 2009 Russia has imported more than 500 modern flexographic printing presses.
Paper packaging is one of the fastest growing sectors in the forestry, paper and packaging industries, with virtually all segments showing significant growth in recent years. Base paper consumption - containerboard, paperboard and sack kraft paper - increased by 10% in total in 2009. The growth of base paper packaging materials is reflected in the growth of recycled products [cf. Table 2].
table 2
Production of certain types of paper packaging in Russia
Processors' profit margins vary as demand grows faster than supply, keeping prices higher than in mature markets .
Cardboard packaging is mainly used in the food, chemical industry (including cosmetics) and manufacturers of household and office equipment. About 70% of the production of cardboard packaging in Russia falls on corrugated cardboard, 80% of which is used for the transportation of goods. Per capita consumption of corrugated board in Russia is much lower than in Europe, therefore, additional growth can be expected when the standard of living of Russian consumers improves.
The main Russian manufacturers of corrugated cardboard and boxes are Kama Paper Company (Naberezhnye Chelny), Gotek, St. Petersburg Cardboard. The largest foreign-owned manufacturers are Stora Enso Packaging (Finland), SCA Packaging (Finland) and Smurfit Kappa (Ireland).
Plastic packaging is the second most important packaging material produced in Russia. Demand is growing, and manufacturers are trying to meet it by investing in new equipment and increasing productivity to create better products. The expected growth in plastic film production is expected to be approximately 12% per annum. As a rule, manufacturers are petrochemical companies and their subsidiaries producing various types of plastic packaging [see. Table 3].
Table 3
Types of plastic packaging
The main major manufacturers are Alcan Packaging, Amcor, NB-Retal, Evroplast.
Thus, today in Russia the most rapidly developing sectors are the production of paper and plastic packaging with an annual growth rate of 10-12%.