Russia: present and future challenges for glass in the alcoholic drinks market

2013-04-20 | Markets & trends

This article deals with the glass market in Russia, looking at which sectors the containers are used for, and the performance and outlook of these sectors up to 2015. Competition from PET, the general negative trends in beer consumption connected to the recession and restrictions in retail, as well as the comparison between beer, wine and spirits, are looked into.

Signs indicate that the global glass industry has started to recover from the global economic downturn
Signs indicate that the global glass industry has started to recover from the global economic downturn. At the same time, however, the industry’s performance in Eastern Europe remains negative. This difference can be explained by the different impact of the economic slowdown on various regions. In 2009, GDP in Eastern Europe dropped by 22 per cent, while the global figure saw ‘only’ a 5 per cent decline.
Moreover, the Russian glass industry does not look too promising for the forecast period with retail unit volumes of glass predicted to decline by 2 per cent CAGR (Compounded Annual Growth Rate) over 2011-2015.
It is obvious, therefore, that declining alcohol consumption in Russia (-1 per cent CAGR over 2006-2011) has a natural effect on this, even if the country is fourth in the world in terms of pure alcohol consumption.
The Russian government has been working to actively to combat alcohol abuse. The Ministry of Health announced that the pure alcohol consumption was 18 litres per capita in 2009, and, in 2010, this figure dropped to 15 litres. However, the improvement in statistics only occurs among urban residents, and in rural areas there is no improvement.

Glass packaging in Russia 2006-2015

The weaker volume growth recorded for glass in Eastern Europe was due almost entirely to poor performance from white spirits in Russia, where glass bottle units fell 4 per cent on average per year over the 2006-2011 period.
Changes in taxation and further plans to place a double exc...


Article taken from Glass Machinery Plants & Accessories bi-monthly magazine (6 issues per year)
Year: 2013 number: 2
Check out Glass Machinery Plants & Accessories magazine

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