PAPER & PACKAGING INDUSTRY OF INDIA

January 25, 2023

PACKAGING… Internationally, the ever so important feature which determines the SALE of any and every Product to a very large extent.

There is a popular saying in India ( Hindi ) JO DIKHTA HAI, WO BIKTA HAI… Meaning – WHAT IS SEEN, IS SOLD. Eye Catching Packaging is very crucial across the globe, as it determines Faster Sale Off the Shelf in Supermarkets, Malls & Large Stores where most of Buying is On Impulse, where a Product Packaging actually SELLS itself to the Buyer and Demands that It should be Picked up from the Shelf by the Buyer. In the Advertising Industry, it is referred to as POP – Point of Purchase and this is exactly where SMART PACKAGING PLAYS THE GAME. It has been observed and studied that a Customer’s Decision changes at the “ Point of Purchase “ and that decision is Instigated by Attractive Packaging. Correct Information and Smartly mentioned USP of the Product on the packaging helps the Customer to decide on it’s Purchase. PAPER is the main Source of Packaging Industry, specially since it is Eco Friendly, can be Recycled multiple times, Provides safety & security to the Product inside and is Human Friendly as it can be destroyed easily viz a viz Plastic, which is a Menace to Human & Animal Life both.

PACKAGING SEGMENTS :

The Two Segments of Packaging Industry are Flexible and Rigid.

  • 36% of India’s Total Packaging is the RIGID SEGMENT.
    Paperboard and Corrugated Boxes are an example of Rigid Packaging, where Paper is the Raw material.
    These are accounted for as the Safest and most effective methods of Packaging & Transporting Products.
    Corrugated Boxes are Tough yet Light and have great Compressive Strength to withstand Pressure and keep the Products inside safe and sound.
    There are Grades in Corrugated Boxes like – 5 Ply, 7 Ply, 9 Ply etc, which depends of the Product to be packed and the distance and means of Transport used. The Process of Lamination or Coating is another feature which helps in longevity of the products, protects the quality by retaining the moisture or keeping unwanted moisture out of the packaging. The packaging of both industrial and consumer items requires corrugated board boxes. They are used for packaging a variety of commodities including textiles, fruits, vegetables, potteries, chemicals and pharmaceuticals.
  • 64% of India’s Total Packaging is the FLEXIBLE SEGMENT.
    Bags, Sachets, Envelopes, Pouches etc. are the main packaging options in Flexible packaging where paper is the main Raw Material. The Flexible Pouch Packing which has gained huge momentum, as small quantities can be effectively packed and sold to smaller buyers. The Theory of BOTTOM OF THE PYRAMID has played a huge role in this segment. High efficiency and Low cost are the positive features due to which it is highly used in Food & Beverages, Personal care, Home Care & Healthcare Industry.

 

AN OVERVIEW – INDIAN PACKAGING INDUSTRY :

In 2019 the Indian Packaging Industry was valued at $ 50.5 Billion, which is anticipated to reach $ 204.81 Billion by 2025, registering a CAGR of 26.7% from 2020 to 2025. These statistics show the rapid growth and bright future of the Indian Packaging Industry.

The surge is largely attributed to growth in the Online E – Commerce , Food Processing, Pharmaceuticals, FMCG, Healthcare, Personal Care & Manufacturing Industry, Plus additional Govt. Initiatives like ‘ Make in India’. In the process, making the Indian Packaging Industry, the 5th largest Sector in the Indian Economy which has the potential to achieve pricing levels that are 40% cheaper compared to the European Market.

The Indian packaging sector has elavated itself with its exports of flattened cans, printed sheets and components, crown cork, lug caps, plastic film laminates, craft paper, paper board and packaging machinery. The packaging segment with the fastest growth include laminates and flexible packaging, particularly PET and weaved sacks.

SURGING EXPORTS OF PACKAGING MATERIAL :

From US$ 844 Billion in 2018-19, the Export of Packaging Materials from India grew to US$ 1,119 Billion in 2021-22, making it a Key Exporter of Packaging Materials Globally.

US retains it’s position as the major destination for the Indian Packaging Industry, followed by the UK, the UAE, Netherlands & Germany.