How the Pulp and Paper Market in Russia Will Develop
Despite digitalisation, the demand for paper is not diminishing.
Moreover, the pulp and paper industry is probably the most promising industry from the point of view of creating a closed-cycle economy. Below we will consider the main current trends and promising directions of the pulp and paper industry development in the Russian Federation.
Current situation on the Russian pulp and paper market
In general, the situation in the Russian market of pulp and paper products is assessed by experts as stable. Thus, according to Rosstat data, the production index for the "production of paper and paper products" sector at the end of 2023 remained almost at the level of 2022. At the same time, some segments (for example, the production of various packaging) show growth of 5-6%. This is explained by the demand for packaging in both food and other industries.
The domestic market for pulp and paper products has also shown a shift. In 2023, exports to China increased by a quarter to 3.5 million tonnes, with pulp exports growing even more significantly, by 1.4 times. This trend is due to excess production capacity at domestic pulp and paper mills. Apart from China, Russian pulp and paper products are supplied to Southeast Asia, Latin America, the Middle East, and Africa.
The industry has managed to overcome recent global challenges. Since 2020, the Russian pulp and paper market has faced significant disruptions due to the coronavirus pandemic, impacting supplies of components and spare parts. In 2022, the need for new suppliers of these items became urgent due to geopolitical shifts. Thanks to consolidated efforts and government assistance, the industry has largely mitigated these challenges.
Key promising trends in the pulp and paper market
The pulp and paper industry is one of the most capital-intensive sectors with high added value. It is also strategically important, employing over 120,000 people. Government attention reflects this importance: the Strategy-2030 aims to increase the production of marketable pulp to 14 million tonnes and paper and cardboard to 12 million tonnes by 2030. This growth is expected to boost tax revenues by over RUB 25 billion and create about 27,000 new jobs.
Due to its specific technological processes, the pulp and paper industry aligns well with closed-cycle economy principles. According to Professor Eduard Akim of St. Petersburg State University of Industrial Technologies and Design, over 60% of products in the industry are already recycled, with this figure projected to reach 90% by 2029-2030, according to Professor Natalia Pinyagina of Bauman Moscow State Technical University.
However, such dynamics can only be achieved with support from the government. Valery Prilipov, Vice-President of the Union of Timber Producers and Timber Exporters of Russia, believes that one of such support measures could be the provision by the authorities of long-term guaranteed demand for final pulp and paper products.
In addition, in the current environment, forward-looking planning for the development of the pulp and paper segment is of particular importance. And here market participants face a situation when due to the short investment planning horizon (about 8 years) it is often impossible to form a long-term programme of enterprise development, providing, for example, for construction of a new production facility or cardinal modernisation of the existing one. Therefore, according to experts, it is worthwhile to envisage increasing this period up to 15 years.
In recent years, the sustainability of products has become increasingly important. This also applies to packaging. In addition to its attractive cost, carton packs can be fully recyclable, which increases their value in view of the trend towards stricter legislation on the use of certain types of packaging. Therefore, we should expect to see a further increase in demand for carton packs in the near future.
Why Pulp and Paper Market Participants Should Attend RosUpack
The importance and significance of the pulp and paper market for the country's economy, as well as its dynamic development and investment attractiveness make it one of the most promising markets and open a window of opportunity for its participants. To take full advantage of these advantages and to avoid unnecessary administrative conventions when establishing partnerships, it is necessary to make yourself known. And one of the best ways is to participate in industry exhibitions.
For nearly 30 years, RosUpack has been the only industry event showcasing the entire packaging production process across multiple sectors. The exhibition’s value is highlighted by its growing attendance: in 2024, 29,537 professionals from 85 regions of Russia and 44 countries attended. A survey of attendees revealed that 81% visited RosUpack 2024 to find new partners, 41% are ready to sign new contracts, and 32% have a procurement budget exceeding 50 million rubles.
If your company is involved in the production or sale of pulp and paper products or equipment and components for their manufacture, participating in the 29th International Exhibition of the Packaging Industry, RosUpack, offers the chance to expand your market reach, establish new partnerships, and stay informed about industry trends and prospects.
