Over the past 8 to 10 years, India has achieved tremendous growth in terms of industrialization and globalization. The inherent result of which, there has been tremendous demand of modern technologies and upgradation of quality of packaging and in general, the quality of life. Food industry offers what is unquestionable, one of the largest opportunities for growth in India today. The industry will play a vital and positive role in the Indian economy. To reach such phenomenon growths, it is quite evident that the processing and preservation technology of food products has to keep pace with the growth. Hence, it is expected that the modern technology of flexible packaging like Aseptic Packaging, Barrier Packaging, and Controlled Atmospheric Packaging will make big inroads in India.
Potential
The growth in the flexible packaging industry in India is mainly driven by the food and the pharmaceutical packaging sectors. The large and growing Indian middle class, along with the growth in organised retailing in the country are fuelling growth in the flexible packaging industry. Another factor, which has provided substantial stimulus to the packaging industry, is the rapid growth of exports, which requires superior packaging standards for the international market.
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The Indian packaging industry is dominated by plastic flexible packaging. The traditional rigid packaging users have also been seen to shift to flexible packaging in recent times. According to industry sources, the main reason for this is that flexible packages are found aesthetically attractive, cost-effective and sturdy. Consumer preference for the use of convenient packaging and packaged products in affordable quantities in laminates is also one of the main reasons that have contributed to the growth of flexible packaging in India. The food-processing sector is the largest user of flexible packaging, accounting for more than 50 percent of the total demand. The flexible packaging segment is estimated to be growing at over 35 percent annually.
Laminated products including form-fill-seal pouches, laminated tubes and Tetra packs are growing at around 30% p.a. This also represents a corresponding additional requirement of capacity in the manufacturing sector. This means that the production will need to increase nearly 100% from the current levels. This is a huge challenge before the nation and a great opportunity for the players in the Flexible Packaging arena. This also opens possibilities for new entrants in the field provided they meet the changing scenario of customer needs and new challenges.
Initiatives are needed to convert the large unpacked commodities into processed, packed and well-presented commodities. India’s imports at 20-25% with a value of $125 million of its total packaging machinery indicate further opportunities not only for Indian companies to increase their share in domestic market but also for international companies to explore new business opportunities in India. The food & beverage and pharmaceutical segments occupy the largest share in the packaging industry, accounting for 85% and 10%, respectively. The plastic packaging market is expanding rapidly registering a growth of 20-25% per annum and is valued at 6.8 million tonnes while the paper packaging industry stands at 7.6 million tonnes. The packaging industry is poised to grow rapidly led by the increasing use of innovative packaging equipment and the rising volumes in flexible packaging market. So it can easily be concluded that future is bright for flexible packaging in India for this decade.
As India’s pioneer and leading provider of integrated packaging solutions, Nichrome is well known for its expertise and experience in flexible packaging. From VFFS and HFFS machines for primary packaging to turnkey packaging solutions for end-to-end lines, Nichrome promises sound project design capabilities, strong R&D, and single-source convenience for enterprises of all scales.
Credits: Milind Bhole, CEO, Neil & Sid Consultants, Pune.
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