WORLD PACKAGING CONGRESS
ORGANISED BY
INSTITUTE OF PACKAGING AND GRAPHIC ARTS,CROATIA
Split, Croatia
6Th June,2012
“ECONOMICAL,
SOCIAL AND ECOLOGICAL
ASPECT OF PACKAGING AND INDIAN
MARKET POTENTIAL”
Prof. NARAYAN C.SAHA
DIRECTOR
STUCTURE
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Brief about the Institute.
India- profile, social and economical
India-ecological aspects.
Indian Consumer behaviour.
India- changing trends & its impact on
packaging.
• Packaging Scenario in India.
* Role of Packaging & Challenges.
“India was the motherland of our race
and Sanskrit the mother of Europe’s
languages. India was the mother of our
philosophy,
of much of our mathematics,
of the ideals embodied in Christianity…
of self-government and democracy.
In many ways,
Mother India is the mother of us all.”
- Will Durant
INDIAN INSTITUTE OF
PACKAGING
BACKGROUND
• AN AUTONOMOUS BODY IN THE FIELD OF
PACKAGING UNDER ADMINISTRATIVE
CONTROL OF MINISTRY OF COMMERCE &
INDUSTRY, GOVT. OF INDIA.
ACTIVITIES
• TRAINING & EDUCATION
• TESTING & CERTIFICATION OF PACKAGING
MATERIALS & PACKAGES.
• TECHNICAL CONSULTANCY THROUGH
ADVISORY STUDY VISITS.
• PACAKGE DESIGN & DEVELOPMENT.
• NATIONAL & INTERNATIONAL EXHIBITIONS.
• NATIONAL PACKAGING AWARDS- “INDIASTAR”
EXHIBITIONS
• ANNUAL NATIONAL PACKAGING
EXHIBITION “INDPACK”
• BI-ANNUAL INTERNATIONAL PACKAGING
EXHIBITION ‘INDIAPACK”
• PARTICIPATION IN INTERNATIONAL
PACKAGING EXHIBITIONS LIKE
– INTERPACK
– EMBELLAGE
– PAPRO ETC.
INDIAPACK -2010 GLIMPSES
NATIONAL PACKAGING AWARDS
• EXCELLENCE IN PACKAGE DEISGN
I.E.
INDIASTAR AWARD
(BIANNUAL)
• EXCELLENCE IN PACKAGING
MACHINERY DESIGN
I.E. PACMACHINE AWARD
(BIANNUAL)
INDIA – THE PROFILE
•Climate
Area – 3.3 mio Sq kms
•3 distinct seasons
•Summer - from March to June
•Rainy - from June to October
•Winter - from November to Mar
•Extreme Seasonal
Variations
Length – 3300 kms
•Mean Summer Temp : 32-36C
•Mean Winter Temp : 10 – 25C
Logistics
Challenge !
Coastline-7600 kms
•Natural Hazards
•Cyclones
Breadth – 3000 kms
•Flash Floods in Monsoons
•Severe thunderstorms
• Earthquakes / Droughts
INDIA – SOCIAL ASPECT
Second most populous country (After China) – 1 Bio +(20%)
• Approx. 1200 mn people equivalent to 3 USAs or 55 Australias
•
• Rural 74% / Urban 26%
• Literacy - 64.8 %
• Work Participation Rate – 39.1%
• Sex ratio is 933 females for every 1000 males
• India's median age is 24-66 yrs
• Religion: Hindus 80%, Muslims13%,Christians 2%, 5% others.
• 23 Official Languages
• Languages - 18 Scheduled languages, thousands of dialects
• Diverse food habits, evolved palate.
INDIA – ECONOMIC STATUS
 Mixed economy combining features of both capitalist
market economies and socialist command economies.
 10th largest in the world in terms of currency conversion
 4th largest economy in terms of purchasing power parity
 Fastest annual growth rates of 6.9%
 India's per-capita income by purchasing power parity is
 US$ 3,262,




 Ranked 125th by the World Bank
Rapid growth of the IT industry.
Largest Player in Software & BPO services ( USD – 17.2 Bio)
Emerging middle class.
Booming in retail market.
ECOLOGICAL ASPECTS - A STATUS
• In India, the average amount of water used per
person every year is 600 m3, A volume that is
slightly more than one-third of that used by
americans.
• India's Per Capita Carbon Dioxide Emissions (Per
$1 GDP) Is Only 25% of that produced by china.
• India's annual generation of Municipal Solid Waste
to be approximately 65 million tonnes in 2010, with
90% of it sent to landfills every year.
• India comes under the top 10 most polluted sites
in the world, most likely as a result of the coal and
lead-producing industries.
MEASURES TOWARDS …………..
GREENER ENVIRONMENT
• There is a great concern about green movement in India.
• Organic agriculture is growing fast in India.
• Use of natural colours are increasing in textile sectors.
• Fast increase of application of natural materials like bamboo, jute and
coir fibres as packaging materials.
• Ministry of Forest and Environment, Govt of India has taken stringent
measures.
- Banning of use plastic based sachet for Chewing tobacco.
- Restriction of use for plastic carry bags.
- 3 R concept is encouged.
• Urban populations are highly concerned about energy savings.
INDIA - CHANGING PATTERN
 Rise in consumerism, as rural India changes into urban
society.
 The urban/middle income groups represent an enormous
potential for innovative and value added goods.
 The urban lower income group is a source of business for
daily consumption items – an opportunity area for “value
for money” brands.
 20% of rural household control 2/3 of all assets in rural
India – similar consumption like urban counterparts.
 The rural India is the “CHALLENGE OF DISTRIBUTION –
THE MARKET FOR FUTURE”
INDIA – THE CURRENT TREND
• Change in consumer attitude.
• The decision making segment of 15-44 year growing.
• Growth of literacy means a changing consumer profile and
emphasis.
• A large middle class with relatively bigger spending power.
• Growth in number of working women.
• Tomorrow’s consumer – is the key factors for the future
demand on packaging.
INDIA – THE OPPORTUNITY (2025)
 Dramatic growth of Indian middle class population from 50
millions to 583 millions i.e. Ten Fold increase of middle class
population is reported in 2025.
 Three Fold jump in household income.
 Average spending power of consumer will be quadruple.
Source: Mckensy report
( “Times of India”- Indian National Newspaper
published on 5th Non.2007)
PROFILE - INDIAN CONSUMER
• Changing demographics
-
Younger earning population.
Brand conscious.
54% below 25 years.
More acceptance of new concepts.
Changing aspirations.
• Change in Life style
- Global Lifestyle : media exposure and overseas travel.
- Look at me (LAM) the most important criteria.
PROFILE - INDIAN CONSUMER
• More nuclear families with dual income
- 75 million households called “Consuming
Classes” with annual income between USD 2000
to 20,000.
- One Million households in creamy layer with
income and easier financing options.
- Convenience overriding price consideration.
IMPACT OF TRENDS ON
PACKAGING
• Increase of literacy
- Increase of Human health consciousness and
safety.
- Move towards packaged, branded products.
• Demands on convenience
- Lighter and easy to handle package.
• Lack of time
- Working women have less time for kitchen.
- Demand for ready to eat foods in packaged form.
IMPACT OF TRENDS ON
PACKAGING
• Change in food habits
- More incidence of eating away from home.
- Emergence of more Italian, Chinese
Restaurants.
- Increase in purchasing of packed foods.
• Booming of retail market
- Entry of leading Indian and Global retail brands.
- Availability of goods in consumer package.
PACKAGING – ADDING THE
5TH DIMENSION
4 “P”S OF MARKETING
MIX
1.
2.
3.
4.
Product
Price
Positioning
Promotion
Packaging - 5th element
You don’t spend on packaging, You invest in it !
SCENARIO - INDIA PACKAGING
 An Industry which is Pervasive.
 Globally considered among top 10 Industrial
sectors.
 Providing a strategic tool for value
addition & business development
towards the future.
INDIAN PACKAGING INDUSTRY
- A HIGHLIGHTS
• THE TOTAL SIZE OF INDIAN PACKAGING INDUSTRY IS
ABOUT USD 18.2 BILLION.
• ANNUAL GROWTH RATE IS 15%.
• ABOUT 22,000 PACKAGING INDUSTRIES.
• 80 PERCENT INDUSTRIES COMES UNDER ARE SMALL
SCALE SECTOR.
• FLEXIBLE PACKAGING ARE GROWING @ 20-25 PERCENT
ANNUALLY.
• CONSUMPTION OF PET BOTTLES FOR BEVERAGES ARE
INCREASING.
INDIA IN THE GLOBAL PACKAGING MARKET
Ref-PIRA/WPO Report
INDIAN PACKAGING INDUSTRY –
Packaging Material break down
Labels
3%
Others
14%
Caps &
Closures
6%
Flexible
22%
Glass
10%
Printed Cartons
17%
Rigid
18%
Metal
10%
NO. OF PLAYERS
LARGE -
60
MEDIUM -
7,000
ORGANISED14,000
SMALL SCALE
INDIAN PACKAGING INDUSTRY
- A HIGHLIGHTS
• TOTAL MARKET OF FLEXIBLE PACKAGING
- USD 571 MILLION.
• THIS INCLUDES SPECILITY LAMINATES,FILMS,
LAMINATES AND PLASTIC WOVEN SACKS.
• GROWTH RATE OF PLASTIC RIGID CONTAINERS
( INJECTION AND BLOW MOULDED) ARE
GROWING @ 15%
• GROWTH RATE OF PET BOTTLES IS ABOUT 25%
• PLASTIC COLLAPSIBLE TUBES ARE GROWING @
10-12%
INDIAN PACKAGING INDUSTRY
- A HIGHLIGHTS
• MORE THAN 8000 CORRUGATED FIBRE BOARD
BOX MANUFACTURING UNITS.
• CORRUGATED PACKAGING INDUSTRIES ARE
GROWING @ 10-12%.
• CORRUGATED INDUSTRIES ARE ADOPTING NEW
TECHNOLOGIES IN TERMS OF CONVERSION
PROCESS,WATER PROOFNESS AND
AUTOMATION.
• METAL PACKAGING IS GROWING @ 8-10 %.
• GROWTH RATE OF GLASS PACKAGING IS
ABOUT 5-6%.
RIGID PACKAGING- A STATUS
METAL & GLASS
10%
4%
11%
44%
OTS
5%
GEN LINE
42%
14%
OIL CANS
47%
TFS
6%
17%
liquor
softdrinks
pharma
beer
food/dairy
other
INDIAN PACKAGING INDUSTRY
- A HIGHLIGHTS
• NATURAL JUTE FIBRES ARE ALSO
CONSUMED IN INDIA.
• ABOUT 54% PRODUCTION GOES IN
PACKAGING.
• PACKAGING MACHINERY IS GROWING @
10%.
• LABEL MARKET AROUND 2 BILLION
SQUARE METERS
• LABEL INDUSTRY GROWTH 20-25%
LABEL INDUSTRY
Overall growth in Indian label industry is 13%. TO will 1 bio USD in next 3 yrs
Consumption of label stock will increase from 256 mio sq m in 2002-03 to 1
bio sq m in 2007-08.New concepts of In mould labels & RFID getting popular
-INDIAMARKET
OPPORTUNITY
PRIME OPPORTUNITY TODAY
LIFESTYLE CENTRING ON FOOD
Processed Food Consumption
to triple in Next Ten Years
INDIA –
THE RETAIL OPPORTUNITY
• India now ranks 5th amongst 30 emerging retail
markets in developing countries.
• Organized retail will grow from 2 to 20% of the
total retail industry at the end of the decade.
• Consumer spending in India has grown at an
average rate of 11.5%.
• About 25 mio sq feet of organized retail space will
be coming up.
THE IMPORTANCE OF
PACKAGING
&
CONSUMER’S EXPECTATION
EXPECTATION FROM
PACKAGING
Adaptability
 Different channels
 Different store configurations
 Different in-home needs
THE ACID TEST
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On-shelf Availability
Freshness
Quality
Value for money
Convenience
THE
CHALLENGES
PACKAGING INDUSTRY IN INDIA … THE
WAY FORWARD
• RIGHT PACKAGING MATÉRIAL QUALITY: OPTIMAL BALANCE
BETWEEN LOW COST & PRODUCT PROTECTION.
• REQUIRED MOVE: SWITCH TO PERFORMANCE BASED
SPECIFICATIONS - TO TARGET VALUES FOR KEY PROPERTIES.
• IN DEPTH KNOWLEDGE OF THE ENTIRE LIFE CYCLE OF THE
PACKAGING AND THE REQUIREMENTS OF THE PACKED GOODS.
• STANDARDISATION OF SHIPPERS/PALLETS .
• REDUCE COMPLEXITIES.
• INCREASE EFFICIENCIES.
• INNOVATE & RENOVATE.
PACKAGING INDUSTRY IN INDIA …
THE WAY FORWARD
TO COPE UP WITH GLOBAL REQUIREMENT
• TECHNOLOGY UP GRADATION.
• NEW INVESTMENTS TO BE ENCOURAGED.
• JOINT VENTURES, FREE EXCISE ZONE, DUTY BENEFITS ETC.
ARE CREATED LOT OF OPPORTUNITY TO GROW CERTAIN
NASCENT PACKAGING INDUSTRIES IN THE COUNTRY.
• SCOPE & POTENTIAL IS HUGE, HOWEVER WE NEED TO
UNLEASH THEM.
“Let us join hands together
& tackle the challenges to
reduce packaging cost
through optimum packaging.