Only aluminum easy-open canning lids are produced in Russia. The manufacturing company is Sant Ltd., which started its operation in 2005. In 2004, the Company conducted engineering setup and produced small trial lots.
Due to unsatisfactory tin quality (variable thickness, etc.) and its high cost, it is not profitable to produce easy-open tin lids in Russia. Tin of inferior quality can also damage production equipment.
Throughout the entire period of 2004-2007, the domestic output of easy-open canning lids was growing in terms of money; in 2006 it grew by 108.0%, and in 2007 – by 16.2%.
IMPORT OFEASY-OPEN LIDS
The share of imported easy-open canning lids is falling in the Russian market year in year out. In 2004, their share constituted 100.0%, in 2005 it was 66.2%, in 2006 it dropped to 46.1%, and in 2007 it was down to 38.1%.
Throughout the entire period of 2004-2007, the volume of import of easy-open canning lids in kind was dropping. In 2005, the import decrease in kind constituted 20.3%, in 2006 it was 31.5%, and in 2007 – 24.2%. The decrease in import can be associated with the start of production of aluminum easy-open lids in Russia in 2004 as well as with tough protectionist measures taken by the Russian Government.
Throughout the entire period of 2004-2006, the volume of import of easy-open canning lids was dropping in term of money. In 2005, the decrease in their import in terms of money constituted 20.3%, in 2006 – 23.2%, and in 2007 – 20.9%.
In 2007, the maximum volume of import came from Slovakia: about 52.3 million tin easy-open canning lids were brought from that country, and their share in total imports constituted 29.3%. Slovakia’s share in total imports decreased. About 36.5 million lids were imported from Great Britain. Other major suppliers were Turkey, the Netherlands and China, which accounted for 16%, 7.5% and 5.7% respectively. The group of “others” includes countries whose share in total imports was no more than 5%.
2007 rating of easy-open lids supplier countries
Source: Federal Customs Service; estimates: Abercade Research Company
EASY-OPEN LIDS EXPORT
Since in 2004 no production of tin or aluminum easy-open canning lids existed in the country, their export was also absent. In 2005, easy-open canning lids were mostly exported to Kazakhstan. In 2006, Kazakhstan’s share on total exports constituted only 15.9%. In 2006, the lead was taken by Mongolia, which accounted for 84.1%. In 2007, insignificant amounts of lids were exported to Estonia and Lithuania.
Throughout 2004-2006, there was an increase in the volume of export of easy-open canning lids in terms of money (in 2006 it constituted 33.3%), and in 2007 its volume dropped by 85%.
EASY-OPEN LIDS CONSUMPTION
It is clear from Table 18 that the volume of consumption of easy-open canning lids was growing in kind year in year out until 2006, and in 2007 it decreased. In 2005, it grew by 25.5%, and in 2006 – by 9.1% while in 2007 it dropped by 2.6%.
The volume of consumption of easy-open canning lids grew in term of money until 2007, while in 2007 it dropped slightly. In 2005, the volume of consumption grew by 14.5%; in 2006 it grew by 23.3%, and in 2007 it dropped by 0.6%.
FORECAST OF THE RUSSIAN EASY-OPEN LIDS MARKET
An emerging trend in the Russian market is a gradual transition of companies producing canned foods to easy-open lids.
Throughout 2004-2006, there was a significant growth of easy-open lids consumption in kind, and in 2007 their market shrank a little. In 2005 and 2006, its growth constituted 25.5% and 9.1% respectively, while in 2007 consumption decreased by 2.6%. This is connected with complicated processes taking place in the canned foods market. The market structure is changing, and there is an active interference of the state. Besides that, on the initiative of Russian aluminum tare manufacturers the import duties on aluminum and tin tare were raised, which led to a drop in imports; at the same time, the capacity of Russian manufacturers is insufficient to meet market requirements. All this led to increasing prices and to a slight reduction in easy-open lids consumption in 2007. However, the outlook for 2008 is positive, and an increase in consumption of about 5-8% is expected.
Considering the dynamics of the Russian market in kind in 2004-2007 and the current processes in that market, in 2008 the market volume is likely to reach 505 million lids (see Diagram 14).
The easy-open lids consumption structure will not change in 2008; as in the previous years, the most widely used easy-open lids will be those of 99 mm and 72.8 mm in diameter. The share of large lids will constitute about 95%.