Over the next 5 years, the Indian packaging sector is expected to grow at 8 to 10 percent per annum, according to an expert on the subject.
The technological developments in packaging sector has improved the quality of food products resulting change in the concept of packed food in India, according to G.Shanker, President, Madras Consultancy Group.
While addressing the inaugural session on New Trends and Innovations of Indian Packaging Industry at PACKON 2005, the two day conference on food packaging and innovation, organized by Confederation of Indian Industry at Chennai, he said that the Indian market for packaging materials is estimated at around Rs.400 billion per annum. Of this, the consumer packaging market of the country is valued at around Rs.180 billion.
The consumer packaging is highly fragmented, and only a small number of firms have revenues above Rs.1.5 billion while the bulk packaging is primarily in the small scale food processing sector. The key players of Indian packaging industry include the presence of large farm sector, where the processing and packaging are essential for reducing waste, improving delivery and get the farmers better returns. Nuclear family system, the youth, health awareness among society, product diversification and the introduction of new products are some other important factors which control the food packaging industry.
The Rs.9000 billion Indian retail sector, which comprises around 13 million retail outlets and accounts for 10 to 11 percent of the GDP, has been adding more modern format retail stores especially in the metro cities which in turn is driving the demand for packaged goods, said Shanker.
The packaging industry should seize the opportunity to offer eco-friendly and innovative packaging solutions that adhere to WTO guidelines, said Ajay Kumar, National Manager, The Tinplate Company of India Limited. The retailing in food business is growing by self-service stores, supermarkets and fast-food outlets. The packaging industry, metal packaging in particular, has to put its act together to offer packaging solutions with WTO standard compliance, eco-friendly materials, high lifecycle cost and waste management, cost effectiveness, innovation and consumer convenience, he suggested.
The conference discussed various aspects on topics like, Indian market in packaging, packaging trends and retailing/logistics as a key driver for growth etc.