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Wrapping
it all up
The
Middle East can play a major role in pushing India forward in the international
markets. Dr Rajat K Baisya discusses why his trips to this region were
worth the effort
 Over the years, considerable
innovations are being
brought in respect of
product processing, design and
value addition. Product quality
coupled with such design
innovations and usage features
result into a product of high
value category or volume
demands. Further, market ends
and POP needs ought to be
appropriately deployed for such
high value and large volume items
and in this setting, the package and its
display become the two key factors.
The packaging industry witnessed a new
trend since the early nineties and continued
to move positively with considerable additions
to technologies. Similarly, global capabilities
are being added on a regular basis, both in
material conversion and packaging lines. The
key drivers are: the large farm (agrihorti)
sector - processing and packaging; rapidly
growing middle class families with increasing
disposable incomes and higher incentives to
spend; shrinking joint families and increasing
nuclear families with dual incomes
strengthening economic balance, growing
health consciousness; more and more branded
products - product mixes and new products
entering the field and the interesting changes
that are taking place in retailing. The growth
in packaging demands are also influenced by
specific shifts viz., bulk distribution to retail
consumer packs, conventional to newer
systems and package design limiting to
optimum shelf life/market life, newer concepts
and convenience features. Emergence of
organised retail with considerable
overseas participation has demanded
product diversification with new
product and package mix. The
country envisages a surge in food
processing to a level of nearly 10
per cent from the current level of a
mere 2-3 per cent, which alone will
be catalytic to the growth of the
packaging industry that probably
needs to double its capacity,
especially with plastics and paper and
board taking the lead with a direct
impact on branded retail growth. While the
number of retail outlets is placed at 13 million
with their contribution accounting for 10-11
per cent of the GDP, the retail business by
value terms is around US$ 20 billion.
However, the modern format store is just
about 2-3 per cent, but is in the process of
rapid growth, particularly in the metros. The
consumer packaging market is estimated at Rs
180 billion (US$ 4-5 billion) and is broadly
distributed as:
Flexibles 21per cent
- Rigid plastics 18 per cent
- Printed cartons 17 per cent
- Glass bottles 10 per cent
- Metals 6 per cent
- Caps and closures 5 per cent
- Labels 4 per cent
- Others 19 per cent
Flexible and rigid packaging will record
exponential growth through retail markets of
processed foods, edible oil, fresh milk, dairy
products, salt and other mass consumed
products and also FMCG products (food,
personal care and pharma packaging) and others that include oils, paints, coatings,
agricultural produce, caps and closures and
disposals. Flexible packaging has made
progressive inroads with many new
innovations. The concept of the single use
unit packs (portion packs) is now globally
acknowledged as the ‘marketing first’.
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