24.05.2024 - Aluminium Association

Natalya Kudenkova, the Head of the Consumer Goods Sector at the Aluminium Association, presented an overview of the future of innovation in the market for beer packaging. This presentation took place as part of the business agenda of the International BEER Forum, held in Sochi from May 21 to 23, 2024. She highlighted several trends in the Russian beverage market that should be significant in the near future. These include the success of Russian producers, the expansion of the range, including the development of natural cider production, the introduction of new products with a reduced sugar content, and a demand from consumers for the hygienic safety of containers.

Per the expert, the beer market remains a key consumer of aluminium cans in the beverage industry. In Russia, the share of aluminium packaging in the beer industry is more than 31% of the total production. In 2019, aluminium cans surpassed glass bottles for the first time. Now, they hold the second place after PET packaging. In 2017, the percentage of beer sold in plastic bottles dropped from 41% to 38%. This decline is due to the restrictions already in place on PET packaging. The share of products in PET bottles is expected to keep decreasing in the future.

The EAEU has a great opportunity to boost the manufacturing of aluminium cans. This year, a new plant by Arnest Packaging Solutions was opened in the Ulyanovsk region. The first production line of the plant started operating in March. The second line is scheduled to be launched in the summer of 2024. With this expansion, the production capacity will increase by 1.6 billion cans annually. There are also plans to increase production in Kazakhstan by one billion cans.

In 2023, the EAEU produced 10.4 billion aluminium cans. By 2026, this number is expected to increase by 3.1 billion.

The aluminium industry offers a wide range of innovative packaging solutions. For instance, they make composite materials, laminated paper and plain foil, as well as a special kind of aluminium cap for canned drinks. This cap made of aluminium foil works as a solution for marking aluminium cans. It ensures that the packaging is tight and hygienic, and also serves as a marketing tool.

Natalya Kudenkova highlighted several key challenges facing the domestic market for aluminium packaging. These include the upcoming labeling requirements for beer and soft drinks, which are expected to come into effect in 2024. Additionally, there will be changes in the excise tax on low-alcohol cocktails with an alcohol content of less than 9%. The introduction of extended producer responsibility (EPR), which involves the packaging manufacturer paying an environmental fee, is expected to be another challenge for the sector. In 2024, the fee per aluminium can will be less than one kopeck–the lowest among all types of containers.