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Packaging industry in India
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Tuesday, 15 March, 2022, 15 : 00 PM [IST]
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Karan Chechi
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Packaging is the art, science, and technology of protecting or enclosing items for distribution, storage, and sale. It is a well-coordinated system for preparing commodities for transportation, warehousing, logistics, sale, and final usage. Packaging contains, protects, preserves, transports, informs, and sells; it is thoroughly integrated into Government, business, institutions, the industrial sector, and personal use across the globe.
Based on the type of material, packaging in India is segregated into rigid and flexible categories. Bags, pouches, shrink films, tubes, and carded packaging are all types of flexible packaging. For example, whip cream cans, pickle jars, rigid plastic cannabis containers, yogurt containers, wine bottles, and hummus containers are instances of rigid packaging. Some of the materials used for packaging include wood, metal, plastic, paper, glass, polyester.
Different products require different packaging; for example, liquid products are packed in barrels and bottles, while solid products are wrapped. For fragile items like glassware, organisations use special containers. Until recently, packing was regarded as a small component of a product's marketing mix. However, it is now an intrinsic element of the product itself by being the primary means of influencing product preference.
Packaging is the world's third-largest industry, after the food and energy industries, and it is the only industry that deals with every single product produced in a country. The Indian packaging industry is witnessing the fastest growth due to increasing awareness regarding clean water, safe food, pharmaceuticals. Another major factor contributing to the growth of this industry is technological advancement.
Several upgrading technologies such as aseptic packaging, retort packaging, and biodegradable packaging are being used in the industry to extend the life of food products. Moreover, consumers are inclined towards packaged products due to the several advantages offered by such products, including physical protection, convenience, product control. According to the Indian Institute of Packaging, packaging consumption in India has increased by 200% in the last ten years, going from 4.3 kg per person per year in 2010 to 8.6 kg per person per year in 2020.
Furthermore, factors such as the country's rising economy, favourable solid demographics, increasing disposable income, expanding consumer awareness, rising demand for processed food, are propelling the growth of the packaging market. Expanding end-user categories in food, beverages, FMCG, and pharmaceuticals will further increase the demand for packaging solutions.
The food packaging industry has witnessed the most innovation in packaging and branding. Consumers need their food products to be hygienic, safe, and visually appealing. Multinational companies have an excellent environmental record when it comes to food packaging. They have a specialized research and development department that conducts numerous research-based trials employing cutting-edge technologies, and they are constantly evolving to ensure consumer benefits.
Additionally, packaging effectively creates brand image since a brand name plays a dominating role in marketing and is popularised through commercials. Also, good packaging carries and projects numerous aspects of the product and the producer, which leads to increased consumer acceptance. Therefore, various companies focus on innovative product packaging to expand their consumer base.
Additionally, the rising sustainability concerns among consumers are prompting companies to opt for environmentally friendly or recyclable packaging. For instance, Kellogg's currently uses recycled cardboard, with 76% of its packaging being recyclable. By the end of 2025, the company hopes to have made 100 percent of its packaging recyclable or biodegradable.
Similarly, in 2021, Nandu's, an Indian meat company, introduced revolutionary ecofriendly packaging for all home delivery orders. The primary packaging, which has direct contact with the hygienically processed meat, is composed of on-plastic virgin food-grade material which is completely recyclable. The secondary packaging (the outside box that holds the primary package), is composed of an entirely recyclable blend of recycled and virgin paper material, assuring both sustainability and presentability.
Additionally, in July 2021, the Indian Defence Research and Development Organization (DRDO), introduced ecologically-friendly packaging materials built from biodegradable natural and plant-based food-grade ingredients. The Ministry of Defence agency collaborated with Acharya Nagarjuna University and Scholastic to create biodegradable packaging products to reduce single-use plastic.
The packaging industry of India is governed by associations such as the Packaging Industry Association of India (PIAI), which is the leading association for all packaging businesses. It has integrated the packaging industry and allied sectors to find the emerging business opportunities and provide support for business growth, export promotion, international collaborations, joint ventures, identifying advanced and patented technology, channelling investment, facilitating imports, and business expansion and diversification.
Furthermore, Government of India is continuously coming up with initiatives to encourage the growth of the packaging industry through several schemes.
Additionally, The Indian Institute of Packaging (IIP), an autonomous body established by the leading packaging and allied industries and the Department of Commerce, Government of India, organizes prestigious industry-focused events such as the "International Summit for Packaging Industry (ISPI) and the "World Packaging Congress" (WPC), as well as a series of national workshops and training programs on food packaging across the country in collaboration with the Ministry of Food Processing Industry, Government of India.
The institute trains artisans, weavers, exporters, stakeholders, and others involved in the handloom and handicrafts sectors in an innovative and aesthetically appealing packaging. The Institute collaborates closely with commodities boards and export promotion councils such as MPEDA (Marine Products Export Development Authority), Spices Board, Tea Board, APEDA (Agricultural and Processed Food Products Export Development Authority), MoFPI (Ministry of Food Processing Industries), state governments and other ministries, and packaging businesses to develop material packaging qualities, package design, standards, and specifications.
Also, Government is urging e-commerce businesses such as Amazon and Flipkart to engage in sustainable packaging since they are among the substantial users of packaging materials. Hence, such factors are anticipated to propel the packaging market in the projected period.
(The author is research director at TechSci Research)
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