From Loose to Branded – The Growing Trend in Edible Oil Packaging

According to a report in The Economic Times on 22^nd May 2017, “Oils surpass dairy as India's largest packaged food item, as consumers prioritise health over expenses”.

Sales of cooking oils increased 22 per cent at Rs. 1.05 lakh crore, outpacing dairy that was below Rs.1 lakh crore during 2016, according to Euromonitor International. Domestic companies harnessed their last-mile distribution network beyond metropolitan centers to dominate sales: The top five companies in the overall packaged foods industry worth Rs. 3.5 lakh crore were homegrown. Rural India is at the vanguard of sales growth.

According to ICRA, the medium-to-long term demand outlook for edible oils in India is favourable (with expected growth in the vicinity of 4-5% p.a.), catalysed by the growing population and expected increase in per capita consumption which in turn would be driven by changing lifestyles; growing urbanization; increasing proportion of middle class population and steadily rising affluence levels.

The per capita consumption of edible oil too has increased from 8 kg per person annually to 16 kg in the past one decade. People are becoming conscious of what they eat. Indian oil producers have shifted their strategies from selling loose oil in container form to value-added branded products. Sales are increasing by more than 25 per cent in rural India, where increasing farmgate prices of cereals and vegetables are helping broaden the consumer base. The introduction of smaller and more affordable pack sizes is also bringing more packaged food categories within the reach of price-sensitive consumers in semi-urban and rural India. By contrast, companies are stressing health and wellness through innovative marketing in urban India, helping shift value to the premium end of the spectrum.

To tap the market for ‘healthy oils’, all major oil players have introduced healthier varieties of their regular offerings. Low absorption, vitamin-fortified, antioxidants, orizanol, etc. are the words to look out for. Growing disposable incomes and rising health problems like diabetes, high cholesterol, heart disease are driving demand for such value-added variations. For example, Ruchi Soya, the third largest company within the foods segment, launched the "Kill lethargy with Sunrich Sunflower Oil" campaign as part of the strategy to focus on health and well-being: Similarly, Adani Wilmar sought to attack diabetes, a condition that affects millions of Indians, with the Fortune VIVO diabetes care oil.

These trends offer exciting opportunities for oil pouch packaging machine manufacturers. Pouches are the preferred packaging for most edible oil – especially for 1 Ltr. quantities. And for oil pouch packing machines, Nichrome is the preferred supplier. As a renowned, innovative Oil Filling Machine Manufacturer, Nichrome is trusted for its high speed, accurate and hygienic cooking oil filling machines and ghee pouch packing machines. Nichrome’s Automatic Oil Filling Machine, FILPACK SERVO SMD is designed to pack an impressive 100 pouches/min. in 50 ml to 100 ml, 3-side seal pouch formats.  It promises to protect the purity of the product, improve time-to-market, and enhance the retail value of the brand.

The VFFS edible oil filling machine is built with an enclosed SS cabinet construction. UV sterilization of the packaging film is inbuilt. The automatic filling machine has the capability to pack two different products and quantities at the same time. Space requirements are lessened as the edibleoil packaging machine does not have any side opening. The controller is operator friendly and the machine is totally mechanical with no need for compressed air.

Nichrome also offers a range of HFFS Totpack machines. Totpack is a PLC based touch screen machine, with linear Spanish Technology with pouch aesthetics. Its compact and versatile design offers both single and perforated chain of pouches. Totpack is equipped with well designed duplex modules for higher outputs, and has Auto tuning temperature controller, easy and quick change over. Its horizontal seal system can be operated mechanically.

Together, these machines from Nichrome offer optimal solutions for pouch packing of oil, allied viscous products like vanaspati, ghee, and even other viscous products such as Pastes, Pickles, Ketchup, Sauces, Fruit Pulps, Shampoos, Gels, Cosmetics, Hair Dye & Adhesives. By using a different filler option, these machines also package free-flowing liquids such as Buttermilk, Flavoured Water, Health Drinks, Non Carbonated Beverages, Liquors, Wines and Juices.