The Russian industry continues to rely on machines "made in Germany"
For the German manufacturers of food processing and packaging machinery Russia is one of the world's most important markets, right after the U.S. and China. Trade relations between the German machinery manufacturers and the customers of Russian end-user industries can look back on a long tradition. For years, Germany has been Russia's foremost trading partner. In 2011, the German manufacturers exported food processing and packaging machinery to the value of € 521 million to Russia. This means, Germany holds a market share of 34 percent. In some fields the proportion is much higher: for example, two thirds of confectionery machinery are of German production, almost every second packaging machine and one in four meat processing machines. Where brewing machinery is concerned, the largest share of machinery and plant supplies is imported from Germany as well.
With its 143 million inhabitants, Russia is the most populous country in Europe and an important market for food, beverage, cosmetic and pharmaceutical products. The Russian people are very eager consumers and the backlog of Russian households concerning modern, processed and packaged food and beverages is still considerable. Compared to other countries, the Russian food and beverage market has not yet reached saturation. With a per capita consumption of 173 kg of packaged food, Russia lies well below the German value of 275 kg per capita.
Market researchers estimate: From 2012 to 2016, sales of packaged foods are expected to increase by 37 percent, sales of alcoholic beverages by 53 percent, and soft drinks by 64 percent.
A growing middle class, which has by now risen to one-fifth of Russia's population, contributes to this increasing demand. Growing prosperity is changing consumer and shopping behaviour. Especially milk and dairy products but also confectionery are on the Russian list of preferences. Russia has become the world's second largest confectionery market – and the appetite for sweets is still not sated. Alcoholic beverages, such as wine or beer, and fruit juices are also becoming ever more popular. The same is true for coffee – even in the second largest tea market in the world.
Demand also increases as modern retail structures are spreading further. These are increasingly popular among Russian consumers as they offer a wide range of products at affordable prices. The trend is towards convenience products, products that promote health and wellbeing, and innovative products in modern packaging for quick consumption on the way.
Although the food industry has grown steadily over the recent years, Russia today is one of the largest importers of food such as meat, milk, or fruit. In order to grow more independent from foreign supplies, the country is investing in the expansion and modernisation of its food production and processing, and as a result the demand for modern processing and packaging machinery is rising.
In the first three quarters of this year, German manufacturers exported food processing and packaging machinery to Russia to the value of EUR 402 million, an increase of nine percent over the previous year.
German technology and expertise gives support to Russia for the expansion and modernisation of its industry. State of the art technology and solutions that are optimally customised to the customers' demands strengthen the economic performance of the Russian manufacturers in the food, beverage, and packaging industries.
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Source: Unipack.Ru
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