Packaging Industry plays a crucial role, adding value to the various manufacturing sectors including agriculture and FMCG segments. In recent times, with changing consumer preferences, the packaging industry has faced numerous challenges and adopted various upgraded technologies such as aseptic packaging, retort packaging and biodegradable packaging to enhance the shelf life of food products.
As per a recent report by Indian Institute of Packaging (IIP), Indian packaging industry is expected to grow at a compounded annual growth rate of 12.3 percent over the next 4 to 5 years. There are roughly 22,000 packaging companies in the country – from raw material manufacturers to machinery suppliers to ancillary material and nearly 85 percent of them are MSMEs.
“With sales of USD 24.6 billion, India was the 6th largest packaging market in the world in 2011. However, in next few years, it is expected to grow at CAGR of 12.3 percent that will make it the 4th largest global market in packaging industry, with sales of USD 42.7 billion,” said D Purandeswari, Union Minister of State for Commerce during Indiapack-2013 exhibition.
India’s per capita consumption of packaging is only 4.3 kg per person per annum, as against Germany’s 42 kg and China’s 20 kg, which is very low as compared to the global standards. This presents a huge scope for innovation, entrepreneurship as well as logistical advancements for industry’s key players to take initiatives needed to convert the large unpacked commodities into processed and packed and well-presented commodities.
Given the rate at which the Indian packaging sector is growing, country’s largest flexible packaging company Uflex Ltd., is gearing up with innovative packaging ideas and a host of value added packaging materials and sophisticated products for the market. The packaging giant is expecting a 30% growth in the revenue this year.