Analysis of the glass container market in Russia in 2016 - 2020

28.10.2021
Analysis of the glass container market in Russia in 2016 - 2020

According to the "Analysis of the glass container market in Russia" prepared by BusinesStat in 2021, in 2016-2020 its sales in the country increased by 13%: from 12.2 to 13.8 billion pieces. Sales grew in 2017, 2019 and 2020 by 4.8-9.8% per year, in 2018 there was a decrease in sales by 10.2%.

There are a number of factors limiting the growth of glass container sales in Russia. First of all, this is the development of alternative types of packaging, such as aluminum cans, PET containers, doy-packs. Also, these are changes in the alcohol market, which, in turn, is closely related to the glass container market. In turn, the decline in bottle sales in 2018 was due to the uncertainty of the position of glass container manufacturers in connection with the authorities' struggle against counterfeit in the spirits market. At the end of 2017, a bill was introduced to the State Duma, giving the authorities the right to seize the equipment of glass factories if their products were used to produce illegal strong alcohol. Fearing sanctions for the sale of glass containers to illegal alcohol producers, glass factories laid down in the plan for 2018 a reduction in the production and shipment of their products. However, at the beginning of 2018, the Association of Manufacturers of Glass Containers sent a letter with a request to reject or amend the draft law on regulating the production and circulation of glass containers, and as a result, these changes were not adopted.

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The main volume of glass container sales in Russia is formed by Russian-made products. The share of domestic products on the glass container market is over 80%. In response to the growth in demand in 2019-2020, the production of glass containers grew at a rather active pace - 7.4-8.1% per year. However, by 2020, sales of glass containers in Russia reached their peak values, for this reason, manufacturers met the beginning of 2021 with a record warehouse balance over the past few years. The production of glass containers has its own specifics, when it is practically impossible to promptly regulate production volumes based on the current market situation. According to preliminary data for 2021, manufacturers have reduced production compared to last year, but in order not to freeze capacity completely, at the beginning of the year the owners of glass factories were forced to reduce prices for their products.

Source: Unipack.Ru

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