Modernising dairy products and packaging is picking up speed in Russia as its industry enjoys significant growth. Global dairy brand Danone is strong across the region, with its dedication to delivering both traditional dairy favourites alongside creating updated products that meet changing trends supported by its packaging partner, RETAL.
As the biggest country in the world, Russia spans over 17 million km and 11 time zones, making it about 2.5 times larger than the rest of Europe put together. Russia currently has just eight million dairy cows which, when compared with 22.6 million in Europe, with Russia importing around 25% of its raw milk. The Russian dairy industry is enjoying steady growth of over 7% year on year, with the government keen to support its domestic production of raw milk from its current position of 31million tonnes annually to 34 million tonnes by 2024.
This support and the long-term presence of global dairy brands in the Russian market means that this is a positive time for development and innovation. Danone, which sells its products in over 120 markets and generated sales of over €25 billion in 2018 of which around 52% came from dairy and plant-based products, is active in Russia. Since 2010 when Danone first partnered with Unimilk, one of Russia’s key milk producers, the companies merged their fresh dairy operations and have subsequently seen rapid growth, leading to Russia’s position as one of Danone’s five key global markets.
By 2025, Danone plans to increase rPET use in its packaging to 25% and by 2025, all its packaging will be either reusable, recyclable or compostable.