The Rise in PET Packaging Costs May Affect Dairy Product Prices in Russia

PET packaging is widely used in the food industry, including for water, soft drinks, juices, vegetable oil, sauces, honey, and dairy products. In segments where packaging accounts for a significant portion of the cost, manufacturers are already talking about the risks of increasing wholesale prices.

The increase in PET costs has been confirmed by the Union of Juice, Water, and Beverage Producers. According to the association's general director Alla Andreeva, the beverage market participants have indeed faced an increase in PET prices in 2026, and the dynamics depend on the situation in the global petroleum market.

The petrochemical industry also points to a significant increase in raw material costs. Mikhail Sutyaginsky, Chairman of the Committee on Chemical Industry of 'Business Russia', Vice-President of the Russian Chemists Union, and Chairman of the Board of Directors of Titan Group, reported that in March-April 2026, the cost of polyethylene terephthalate increased by 25–30% depending on the segment and supply conditions.

Sibur noted that the Russian PET market remains import-dependent. According to the company, in April, the cost of imported PET increased by more than 50% fr om the beginning of the year amid rising prices and raw material shortages. This has also affected domestic prices: PET and PET preforms have risen by approximately 30% since the beginning of the year.

According to Mikhail Sutyaginsky, annual PET imports to Russia amount to 240–300 thousand tons, with its share exceeding 30% of domestic consumption. The main supplier remains China, accounting for more than 90% of import deliveries. Meanwhile, the capacity utilization of Russian facilities already exceeds 90%, limiting the ability to quickly replace imports with domestic production.

Market participants do not yet expect a direct sharp increase in prices for end consumers, as some companies operate under long-term contracts, and agreeing on new terms with retailers takes time. However, cost pressure is already forming.

Ivan Timonin, Senior Manager at Implementa, believes that in segments wh ere packaging occupies a significant cost share, including water and dairy products, part of the expenses may be passed on to the end consumer in the second half of the year. He estimates that in dairy products, price increases could range from 5–8% if the raw material situation does not stabilize.

For the dairy industry, the packaging factor is especially important in categories such as drinking milk, fermented dairy products, cream, yogurts, and other products in PET containers. The increase in packaging material costs may put additional pressure on the margins of processors and become an additional factor in price revisions, along with costs for raw materials, logistics, and energy.

The industry believes that the strategic solution should be the development of its own raw material base and deep processing projects within Russia. In particular, the Titan-Polymer plant project for the production of polyethylene terephthalate could provide 220–240 thousand tons of PET per year and cover up to 50% of domestic demand for this material.

If new facilities are implemented, it could reduce the dependency of the Russian packaging market on imports and external price conditions. For now, the rise in PET costs remains one of the risk factors for food manufacturers, including the dairy sector.