Sustainability reaches Russian packaging market, Mondi reports

25 Jul 2018 --- Global packaging and paper group Mondi has reported market-specific trends for Russia, including e-commerce growth, premium paper demands and the “arrival” of sustainability. The trends were collated following Mondi’s fifth year at the RosUpack in Moscow, which attracted about 23,000 visitors this year, and stands as the largest packaging industry trade show in Russia and Eastern Europe.

“At RosUpack 2018 we observed specific market trends for our partner industries, including retailers, packaging converters, and baby and personal care brands,” says Albert Klinkhammer, Head of Public Affairs at Mondi Group.

“Notably, Russian companies showed concrete and growing interest in the environmental sustainability of the packaging solutions we offer, including recyclability, light-weighting and renewable materials. We see this as a significant change for the Russian market. In addition to adapting product and packaging strategies for environmental sustainability, we also saw a rise in interest in packaging solutions for e-commerce and diapers, as well as premium quality printing papers.”

E-commerce market growth requires packaging that is durable and convenient
The Russian e-commerce market is expected to grow to almost 22 billion US dollars by 2020. The number of shoppers will grow from approximately 50 million in 2018 to 61.6 million by 2022, an increase of nearly 20 percent in four years, says Mondi. Furthermore, the market was valued at 122,865.3 million units in 2016 and is estimated to grow at a CAGR of 2.2 percent to reach 136,783.7 million units in 2021.

These trends were reflected at RosUpack, where more visitors were looking for packaging explicitly designed for e-commerce, the company explained. These businesses should challenge packaging to optimize fulfillment as well as convenience for the end-user – for example, easy-open, tape-less closure for return shipment. Durability to protect the goods throughout long-distance transport, and attractive visual branding on or inside the packaging are other relevant aspects. 

Sustainability factors are also relevant here, Mondi goes on, as brands look to prove eco-credibility with right-sized, lighter and recyclable e-commerce packaging. Mondi introduced Re(use) to the Russian market, a recyclable corrugated e-commerce packaging solution with double hotmelt application. The first strip makes for process effective tape-less and easy closure at shipping. With the box being fully sealed, additional foil bag wrapping becomes obsolete. Consumers are hoped to appreciate the convenient tear-open strip and easy re-closure via the second hotmelt strip for returns.

Baby-care market growth
Russia’s Minister of Industry and Trade reported that the baby-care, and in particular the diaper, market,  could grow tenfold to 1.2 billion US dollars. The vast majority of diapers sold in Russia are manufactured locally. Some of these manufacturers came to RosUpack in search of local partners to produce outer packaging for their diapers and shorten lead times and reduce currency risks and import taxes, Mondi says. As well as high sealing strengths and excellent runnability on packaging lines, visitors were interested in high-quality printing and other features to support branding and increase shelf appeal.

Mondi’s plant in Aramil, southeast of Yekaterinburg, Russia, is a supplier of diaper packaging, with expertise in film extrusion, printing, lamination and bag converting. Here, Mondi produces custom wicket bags designed to give personal hygiene products high-impact shelf appeal.

Global sustainable packaging trend arrives in Russia
Commercial inquiries at RosUpack 2018 revealed interest in environmentally sustainable packaging, Mondi explains. Converters and brands at the Moscow trade fair showed interest in recyclable and renewable packaging solutions, sustainable production methods and resourcing, including sustainable forestry practices in Russia.

“Increased awareness of the environmental impacts of inappropriate packaging and waste could be accelerating this trend. We see that conscious consumers are driving companies to offer sustainable products and packaging. RosUpack is an important industry event and a marker of trends in Russia, so we were glad to show visitors how Mondi can be a strong partner and help them adopt more sustainable packaging. Sustainability is part of our DNA,” says Albert Klinkhammer.