The rf’s Polymer Industry Has Been Shrinking for the Third Year in a Row – with Investments Decreasing, Enterprises Closing

The russian polymer production and processing sector has entered a phase of prolonged stagnation, which has been ongoing since 2022, when the full-scale war against Ukraine began. Production indicators remain in the red and continue to deteriorate.

According to the output index in 30 subsectors of plastics and rubber, a decline has been recorded in 18. In January–July, production decreased by 6.3 % compared to the same period in 2024, and in July, the decline in the categories of pipes, plates, sheets, and films reached 11–14 % compared to last year. The PVC segment showed the worst dynamics, with a decline of 13 %.

The industry is facing a shortage of domestic equipment, a disconnect between science and engineering, a shortage of personnel, and low labor productivity. At the same time, the market is rapidly losing players: 874 companies closed in the first half of 2025.

Demand is falling, while the weak ruble, high key rate, and expensive loans are holding back investment in capacity upgrades, which declined by almost 30 % last year.

Additional pressure is being exerted by the ministry of natural resources’ initiative to increase environmental fees fivefold – from 3,840 to 23,820 rubles – and to raise the recycling rate from 25 % to 50 %. To polymer packaging manufacturers, this means a sharp increase in costs and an inevitable rise in product prices.