Thursday, October 31, 2013

The Growing Packaging Industry in India

The Indian Packaging industry is growing at an exceptional pace. Packaging is an integral part of many sectors across the country and across sectors. According to data available, the Indian Institute of Packaging (IIP) has touted the total packaging industry in India at present at USD 27.6 billion and by 2016 this is expected to rise to USD 43.7 billion. The packaging industry was growing at a healthy rate of 12%p.a. while the global growth rate of packaging was 5% p.a.

The large and fast growing middle class Indian population and the growth of the organized middle sector has spiraled the growth of the packaging industry. The retail market in India is the 5th largest in the world according to the IIP and for investment it has been ranked the 2nd most favorite emerging market destinations. By 2018 this market is expected to rise to USD 1.3 trillion.

There are close to 22,000 packaging companies in the country which manufacture raw materials, machinery supplies and additional materials. The processed food manufacturing industry contributes a major chunk (48%) to the consumption of flexible packaging material. Others like pharma, personal care and misc constitute the rest of percentage.

The plastic packaging industry in particular has registered a growth of 18-20%. The flexible packaging market is USD 4 billion.

The flexible packaging industry has been constantly developing innovative packaging solutions for various sectors and applications. In this regard Uflex ltd is at the helm of delivering innovation packaging solutions through its constant and improved R&D. With a vision to ‘Progress with Distinction’, Uflex is privileged to contribute to society by producing a variety of value added flexible packaging material, sophisticated products including films like BOPET, BOPP and CPP; state-of-the-art packaging and converting machines and rotogravure cylinders, thereby providing world class flexible packaging solutions to its customers.

Before the advancement of the industry the quality assurance of packaging was lagging behind but now it is no more so, and domestic packaging is now in reckoning with packaging of international standards. Also, packaging has become an integral part of creating brand value. With flexible packaging, manufacturers are increasingly influencing it to match their products and its specifics.

The packaging industry is an extremely competitive one. The industry is expected to register further growth fuelled by demand for more expensive films and coatings for longer shelf lives of products packaged. Also a trend in the food industry of going away from bulk food packaging to single-serve products will also be an advantage for the packaging manufacturers.

As compared to developed economies like China and Germany which have packaging level consumption per person per annum of 20kgs and 42 kgs respectively, India’s consumption is at a low 4.3kgs per person p.a. Hence, there is still a huge scope for innovations, entrepreneurships and logistical advancements. Initiatives are required to convert the large unpacked commodities into packed, processed and well presented goods. Uflex Ltd is committed towards positive growth and making the Indian flexible packaging market at par with the markets in developed countries.

No comments:

Post a Comment