With consumers looking for superior quality packaging materials, the Indian packaging industry is looking to incorporate the latest technology in manufacturing of packaging products  Packaging refers to the expertise of enclosing a product in a manner that it reaches its end destination safely. Currently, the major challenge for the packaging industry is to satisfy the ever growing demands from consumers who want their products to remain safe and enclosed in environmentally-friendly materials. The sector is trying to stay ahead of the market requirements by undertaking constant innovation to keep pace with evolving customer tastes. Players in the segment are constantly endeavouring to evolve technological expertise to reduce cost. In future it is expected that organised players will play an instrumental role in setting up their own standards in generating premium products at cost-effective price points. However, with remodelling of their products wherein packaging plays a significant role, Indian players have been able to make their presence felt in the global markets.
Indian packaging industry at a glance
The packaging market in the country which is pegged at Rs 65,000 crore is growing at the rate of 15% per annum which is almost double the growth rate of the global packaging industry. This figure is expected to touch 22-25% annually over the next few years. The current industry scenario promises immense growth opportunities for packaging players, in terms of both material and technology. The fastest growing segments within the packaging industry are food packaging, primary flexible boards and cartons as well as packaging machinery and systems.
India ranks next only to China in terms of packaging machines in Asia. Last year India imported packaging machines worth around US$290 million. Perishable products such as fruits, hard and soft drinks, marine products and processed foods, among others require high quality packaging materials. Major brands have brought about transformation in packaging methods owing to change in dynamics in modern trade. With an increase in purchasing power of the Indian middle class and the increasing demand for hygienically packaged food products, the packaging industry is set to witness a tremendous upswing in the near future.
Promotion of eco-friendly packaging products
Modified atmospheric packaging (MAP), which is one of the widely used technologies in the West, is now being promoted in India too. In this technique, the air surrounding the product is continuously changed to prolong the lifespan of the product. With safety of environment becoming a major look-out for firms across the globe, eco-friendly and recyclable packaging materials, including biodegradable plastics are being used extensively for packaging purposes. Utilisation of these products is boosted further with the surge in demand for beverages, food and other consumer goods.
In order to manufacture packages of various sizes such as mini packs, multi packs and family packs, the requirement of modern packaging machines is increasing too. Packaging has become a very crucial aspect that keeps brands on their toes as consumers are automatically attracted towards the most convenient and appealing packs available in the retail outlets.
Indian offers great opportunities for the packaging industry, which are still lying untapped to a large extent. The growing demand in the Indian packaging industry will require key market players to continue developing new manufacturing facilities as well as expand the existing ones.
Shailesh Sheth, chairman and managing director of Kris Flexipacks Pvt Ltd, a mid-sized manufacturer of packaging products in Mumbai |
