Flexible packaging and the pharmaceuticals industry

A study conducted by McKinsey & Company states that the Indian pharmaceutical industry will touch USD 45 billion by 2020 and the market will be the sixth largest in the world by the same year. The reason for this robust growth in the pharma sector is being attributed to committed health insurance, improved healthcare facilities, a growing economy and FDIs. Healthcare in India contributes to almost 6% of the nation’s GDP. 

For the flexible packaging industry the pharmaceutical sector is a golden opportunity to diversify and innovate. Due to an increase in the health awareness, increase in product processing units, demand for convenient packaging, the pharmaceuticals packaging industry is registering strong gains and as the market grows the demand for flexible packaging in this sector is also expected to grow.

According to a report (marketsandmarkets.com), edged by a vast population and favorable demographics Asia-Pacific countries like India, Japan and China is expected to overtake North America and the European pharma packaging market by 2018. Other factors like robust pharma market, increased incentives, investments and initiatives both by the government and FDIs will help keep the market at an upside.  

Flexible packaging presents many advantages to the medicinal industry like better features and convenience in packaged products. Child resistance, tamper proof and anti-counterfeit packaging are also some innovations that the flexible packaging industry has come up with keeping with the worldwide demand. As with most other packaged products, pharmaceuticals too need a dependable and innovative packaging solution that is a combination of quality, protection and convenience.

Over the years, the pharmaceutical companies have let go of glass packaging and switched to PET bottles for packaging their syrups and other liquid medications.

As most of the Indian pharmaceutical products are also exported overseas (US$ 14.6 billion in 2012–13), it is imperative for the flexible packaging industry to provide packaging that is foolproof and compliant to international norms. For that the packaging systems need to be advanced.

A rapidly developing pharmaceutical industry in the country and a more aware and educated consumer has made it mandatory that the packaging structure also goes through a paradigm shift. Uflex Ltd., India’s largest flexible packaging solution provider has ensured to keep pace with the times and keep itself armed with technological innovations to provide affordable and sustainable packaging solutions. Developments in the pharma sector have pushed the flexible packaging companies in India to be more competitive, economical and novel.

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.