The positive feedback received lately from the Russian market and, in particular, from the packaging industry and the related processing industries as well as plastics and rubber has now been confirmed very emphatically at the two trade fairs upakovka – Processing and Packaging and interplastica (the 21st International Plastics and Rubber Trade Fair). The upswing in major market segments is leading to strong demand for packaging as well as plastic and rubber. The manufacturers of these products are investing as much as they can in modern production technologies and materials, in order to be able to satisfy the increasingly exacting requirements made by their customers. More than 900 companies from 30 countries presented their innovations at the two trade fairs in the AO Expocenter in Krasnaja Presnja from 23. to 26. January and were unanimous in reporting a tremendous response and impressive business success. 24,900 experts, mainly from all over Russia and from the neighbouring countries, visited upakovka and interplastica. 23,000 visitors were registered in 2017.
Werner M. Dornscheidt, CEO of Messe Düsseldorf GmbH, was satisfied with the trade fairs: “To the extent that the Russian economy is developing positively and reliably, Russian companies are taking advantage of the two leading industry showcases. This is where they can get to know the new developments on the world market and enter into intensive negotiations with the suppliers directly. The exhibitors that maintained a consistent presence in Russia under poorer market conditions as well are now benefitting to a particularly large extent from their good contacts in the industry. In addition to the conclusion of many sales contracts, the high quality of the demand was a very important sign that an economically attractive future is beginning.”
The trade visitors were in turn very impressed by the wide range of innovative products and services on show that gave them a valuable insight into trends and future market opportunities. The improvement in the rouble exchange rate is now helping to enable Russian companies that had to defer necessary purchases in the recent crisis years to invest in the modernisation of their production.
Import Subsidies Continued
Russia is one of the biggest sales markets for food worldwide. After restrained consumption during the years of recession, consumers are now increasingly taking to high-quality and pre-packaged foods as well as convenience products again. Furthermore, soft drink sales are up.
In Russia the policy of subsidizing imports in the food sector continues unabated. Russia’s agricultural production is also rising rapidly. So as to process these products further Russian and international enterprises are stepping up their investment in the installation and expansion of their local production capacities. The increased food output will not only be sold in the domestic market but is also meant to be exported in increasing amounts. This boosts the demand for food processing and packaging machinery as well as for beverage production and filling.
Germany continues to be Russia’s most important supplier of food machinery and packaging machinery with a market share of just under 30%. In some segments of the market this percentage is even substantially higher. Over the first 11 months of 2017, German exports to Russia rose even further reaching a value of EUR 341 million, 13% more than in the previous year. German exhibitors at upakovka – Processing and Packaging 2018 therefore expect good post-fair business and demand to continue rising over the coming months.
The situation for Italian companies is similar – they were represented in higher numbers at their national pavilion this year than last. The Italian machinery manufacturers’ association UCIMA has supported upakovka officially since this year’s edition.
Successful Special Themes
After the premiere last year, upakovka 2018 also had an extensive innovationparc conference agenda in store for visitors for the complete duration of the trade fair. The first day of the trade fair featured not only lectures on brands, packaging and the latest trends in the beverage industry but also a slot on SAVE FOOD, dealing with the reduction of food losses and waste by means of packaging (technology). The session was hosted by Eugenia Serova, Director of the Russian FAO Office. Over the course of the trade fair, the theme of Industry 4.0 was also addressed. Here, VDMA, the German Mechanical Engineering Industry Association, presented the challenges and know-how surrounding the trend theme that lured to so many trade fair visitors to the innovationparc. The various lectures on flexible packaging also met with great interest.
“The positive response to the innovationparc and SAVE FOOD shows that we had our finger on the pulse when adapting the special themes for upakovka as part of the interpack alliance. Russian user industries are showing great interest in current trend themes and are extremely attractive for suppliers due to their high market potential especially in the food sector,” says Bernd Jablonowski, Global Portfolio Director Processing & Packaging at Messe Düsseldorf.
The next upakovka in Moscow will run from 29 January to 1 February 2019 – again running concurrently with interplastica.