Learn the overview of the current state of the Russian pharmaceutical packaging and packaging equipment market, including an analysis of its key trends and future prospects for market participants

The expansion of the Russian pharmaceutical market is driving increased demand, including for packaging solutions. At the same time, the withdrawal of European packaging suppliers between 2022 and 2023 has created opportunities for new entrants.

Current situation on the global and Russian market of pharmaceutical packaging and packaging equipment

International experts agree that pharmaceutical packaging accounts for about 15% of the total volume of global packaging production. The global pharmaceutical packaging market is growing by about 6% annually and may exceed $140 billion by 2027.

The global market for packaging equipment for the pharmaceutical industry will reach $9.7 billion in 2023, according to Exactitude Consultancy. By 2030, the volume of this sector will double to 15.6 billion dollars, according to experts. The main driver of growth is the promotion of a responsible attitude to one's own health, which is resulting in a growing demand for over-the-counter medicines and dietary supplements. Moreover, the high demand for packaging equipment is driven by the increased production of generics, which represent over 80% of the Russian market.

Russian market of pharmaceutical packaging and packaging equipment

According to Ekaterina Belyaeva, Deputy Director of the Moscow Representative Office of CJSC Evalar, the volume of packaging sales at the end of 2023 has returned to the levels seen in 2020 (approximately 300 billion pieces), having overcome the consequences of the 2022 slump. Pharmaceutical companies' expenditures on the purchase of packaging in 2022-2023 can be estimated at 56 billion rubles. The majority of these costs were for imported consumables required for the production of packaging. Until 2022, more than half of all cardboard, paper, foil, films, dyes, pigments, and adhesives were supplied from abroad, primarily from European countries. In light of the current geopolitical situation, some companies have reoriented their partnerships to include suppliers from other countries. Indian pharmaceutical companies Amcor Flexibles India Pvt Ltd, West Pharmaceutical Packaging India Pvt. Ltd., Uflex Limited, and SGD Pharma India Ltd, in addition to manufacturing drugs and components, are actively cooperating with Russian market players, supplying them with packaging.

The situation is comparable in the pharmaceutical packaging production equipment segment. Prior to February 2022, European and Japanese companies accounted for over 50% of the equipment supplied to Russia. In addition to Chinese companies, Turkish manufacturers are also active in niche markets in Russia. Aipak and Yilmaz Makina are two notable examples.

Growth points and prospects

Western suppliers of packaging and equipment have left the market, creating an opening for Russian and foreign companies open to cooperation. With the expansion of the Russian pharmaceutical market, the demand for packaging and equipment for its production is on the rise.

Furthermore, the downtime of a packaging line can result in significant financial losses. According to Promis JSC experts, the weekly lost profit in this case can reach 130 million rubles. For this reason, one of the immediate priorities for Russian pharmaceutical companies is to identify dependable suppliers of packaging solutions and for manufacturers of packaging equipment to seek out partners willing to provide cutting-edge and reliable machinery.

One of the most promising areas is the replacement of pharmaceutical packaging and packaging equipment with Russian analogs and products from some countries. Moreover, foreign companies have the option of partnering with Russian manufacturers to supply the products to the Russian market. This collaboration allows foreign companies to leverage the expertise and understanding of the domestic market, resulting in a product that aligns with the needs of the target audience.

Technological sovereignty - the key to the development of production and economy

The reorientation of imports of packaging and packaging equipment for the pharmaceutical industry is a clear and decisive response to the current challenges of supply volumes and the modernization of packaging equipment. However, in the long term, it is crucial to ensure the recovery of domestic production and technological sovereignty.

In his address to the Federal Assembly, Russian President Vladimir Putin highlighted the necessity for the development and implementation of new projects aimed at technological sovereignty, with a particular focus on initiatives related to the preservation of citizens' health. Significant progress has already been made in this area. For instance, the Tula region has become the sole producer of primary packaging for medicines made of aluminum foil in Russia. In the Saratov region, the Aurora Pak Engineering enterprise produces unique packaging equipment (labeling lines and capping machines), which, in addition to domestic customers, is actively exported. The MISSP enterprise from the Krasnodar region supplies lines to produce containers and the filling of antiseptics. Promis presented the latest equipment for in-line labeling of secondary packaging at the annual International Exhibition of Equipment, Raw Materials and Technologies for Pharmaceutical Production Pharmtech & Ingredients.

Why Should You Take Part in Pharmtech & Ingredients 2024

The Pharmtech & Ingredients international exhibition will feature pharmaceutical packaging and packaging equipment from both leading market players and ambitious debutants. For 25 years, Pharmtech & Ingredients has been bringing together leading drug and dietary supplement manufacturers, packaging and equipment suppliers, along with top industry experts.

In 2023, 472 companies from the Russian Federation and 14 foreign countries participated in the exhibition, of which 141 companies represented the packaging and packaging equipment segment. Among the market-leading exhibitors, the following companies can be highlighted: IMA (Italy), ECI Packaging (USA), OMAG (Italy), Tofflon (China), Marchesini Group (Italy), POLO RUSSIA (Russia), Romaco Holding (Germany), Truking (China), Aurora Pak (Russia), Masterprint-Pak (Belarus). PHARMO RES (Italy), GREEN CROSS EXPORT (India), PHARMAPACK TECHNOLOGIES (China), Absolut Printing (Russia), Protei Plant (Russia), SWET (Russia), Belmedsteklo (Belarus), PECHATNIA Printing House (Russia). For the first time, VNESTTORGIZDAT (Russia), NOKSA (Russia), DELTA ORIGIN (Russia) and KAMA (Russia) participated in the Pharmtech & Ingredients exposition.

Экспозиция Pharmtech & Ingredients 2023
Участники фармацевтического рынка на Pharmtech & Ingredients

It is worth noting that 41.3% of the exhibition attendees (4,142 people) expressed interest in the packaging and packaging equipment section. Participation in the main event of the pharmaceutical industry allows companies to solve several important business tasks at once. These include learning the latest trends and market data, finding new customers and concluding agreements with them directly at the exhibition site, and strengthening relations with existing partners.

Vladimir Pavlov, KAMA:

"It is very important for us to participate in this exhibition because our company is the only manufacturer in the country who imports substituting products for the pharmaceutical industry, primarily for packaging. One of the most interesting features of the exhibition is that most of the visitors are a foreign audience. I wish that the exhibition at least does not lose the pace that it has now, and that the issues that are raised in the sessions will be implemented in the near future. Namely, the development of domestic medicines of the next generations and others".

We look forward to seeing you at the 26th International Exhibition of equipment, raw materials and technologies for pharmaceutical production, Pharmtech & Ingredients, which will be held from November 19 to 22, 2024 (Moscow, Crocus Expo IEC, pavilion 2).