Flexible Packaging in India
Flexible Packaging in India
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TABLE OF CONTENTS
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LIST OF TABLES
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LIST OF FIGURES
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1.
In addition, the packaging industry is increasingly becoming technologyoriented with innovations driving the market; this is expected to lead to
packaging that increases shelf life, reduces cost and is light weight.
Figure 1: Indian Packaging Industry Growth
(US$ Billion)
27.8
2014E
2011E
17.3
CAGR:14.9%
13.3
2009
2004
6.9
0.0
5.0
10.0
15.0
20.0
25.0
30.0
E-estimate
Sources: Journal of Indian Institute of Packaging, IMaCS Research
The global packaging market was valued at US$ 563 billion in 2009.
India accounts for 2-3 per cent of the global packaging market.
At 49 per cent, plastics are the largest single material used for packaging in India.
Flexible Packaging Industry
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Figure 2: Estimated Share of Packaging Material Consumption
(2009)
12%
24%
6%
6%
39%
16%
8%
7%
33%
Plastics
49%
Metal
Glass
Others
The plastics packaging market was valued at US$ 6.5 billion in 2009.
It was followed by paper and boards at US$ 1.6 billion and glass at US$ 1.1
billion, with other materials accounting for the balance US$ 3.2 billion.
Figure 3: Packaging Materials Market - 2009
(US$ Billion)
Others, 3.2
Paper and
board,1.6
Glass, 1.1
Plastics, 6.5
Metal, 0.9
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It was followed by paper and boards at US$ 1.6 billion and glass at US$ 1.1
billion, with other materials accounting for the balance US$ 3.2 billion.
Table 1: Materials Used in Packaging
Material
Packaging type
Preferred in applications
Plastics
Aluminium
Glass
Tinplate
Laminates
(plastic and paper)
Rigid and flexible are the two most significant types of packaging in use
today.
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Figure 4: Types of Packaging
Packaging by end-use
Packaging by product
Products packed
Consumer
Packaging
Rigid
Packaging
Bulk
Packaging
Flexible
Packaging
Other
Rigid
Metal
containers
Glass bottles
Rigid plastics
Paper cartons
Wooden racks
Flexible
Stand-up pouches
Milk pouches and
bags
Laminated tubes
Squeezable bottles
Medicine bottles
Foam packaging
CD cases
Food containers
Other
Caps and
closures
Lables
Secondary
packaging
2.
Most of the raw materials required for packaging are abundantly available in
the country with well established industries for manufacturing plastics,
paper, glass and metals.
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Table 2: Advantages of Packaging
Changing rural markets, which are targets of some of the major consumer
goods and food-sector industries, have also helped innovation in packaging.
Figure 5: Growth in Personal Disposable Income
29%
1,200
1,000
24%
800
19%
600
14%
400
9%
200
4%
2007-08
2003-04
2005-06
2001-02
1997-98
1999-00
1993-94
1995-96
1991-92
1989-90
1985-86
1987-88
1981-82
1983-84
1977-78
1979-80
1975-76
1973-74
1969-70
1971-72
1965-66
1967-68
1963-64
1961-62
1959-60
Conversion: 1US$=INR 45
Sources: Ministry of Statistics and Programme Implementation, IMaCS Research
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Key advantages of flexible packaging over rigid include: light weight, small
pack size, and energy savings, ease of storage and transportation and
convenient disposal.
Table 3: Properties of Rigid and Flexible Packaging
Parameter
Flexible
Rigid
Weight
Light
Heavy
Raw materials
consumption
High
Sizes
Storage
Re-use
Not possible
Can be reused
Energy saving
30-40% lower
Resealing
Possible
Not possible
Disposal
Easy
Difficult
3.
Plastics, paper and metals are the key materials used in flexible packaging
products, which are made from foil or paper sheet or laminated paper and
plastic layers.
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Plastics are used in bulk bags for commodities such as sugar, salt,
rice, flour, onions, potatoes and tea as well as pouches and
sachets
2014E
2.2
2011E
1.3
2009
CAGR: 20%
0.9
0.0
0.5
1.0
1.5
2.0
2.5
E-estimate
Sources: Journal of Indian Institute of Packaging, IMaCS Research
About 40-50 per cent of the total plastics produced in the country are used
in the packaging industry.
As a packaging medium, flexible packaging accounted for about 33 per cent
of the total industry in 2009.
Multilayer plastics are useful for strength, sealability, high-barrier
properties and printability.
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Figure 7: Share of Packaging Mediums (2009)
Others, 9%
Lables, 3%
Flexible
packaging,
33%
Caps &
closures, 6%
Metal cans,
8%
Glass
bottles, 8%
Printed
cartons,
14%
Rigid
packaging,
19%
Polyethylene
(PE), 59%
Polypropylene
(PP), 31%
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4.
Tea, 3%
Snacks, 6%
Non-food,
30%
Biscuits, 6%
Food,
38%
Chewing
tobacco, 32%
Confectionery,
6%
Food staples,
6%
Other food,
11%
Demand for small packs has given impetus to the flexible pouch segment,
which allows small-quantity packaging.
Flexible bags are used for carrying bulk goods such as food grains and
cement. Carry bags for retail shopping is also popular.
Laminated tubes and bags in boxes are the other common flexible products;
laminated tubes are mainly used for pastes and ointments, while bags in
boxes for moisture absorbing products such as tea and coffee.
Ease of printing has made flexible packaging a tool for branding and display
of retail goods.
A wide range of colour options available for use in plastics has made
package designing easier.
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Table 4: New Products in Flexible Packaging
Flexible bags
Flexible pouches
bags
for
Over the last 10 years, conventional packaging materials such as glass, tin
plate, paper, aluminium, and jute have been replaced with flexible packaging
materials in several applications.
High-density polyethylene (HDPE), Low-density polyethylene (LDPE),
Biaxially-oriented polypropylene (BOPP) and Polyvinyl chloride (PVC) are the
major materials in use for flexible packaging.
Table 5: Changing Consumption Patterns
Product to be packed
Conventional packaging
Milk
Glass
Beverage
Pharmaceuticals
Toothpaste
Aluminium tubes
Soap
Paper cartons
Cosmetics
Metal, paper
Shampoo
Glass
Fertiliser
Jute
Woven sacks
Paper, jute
LDPE, HDPE
Edible oils
Tinplate containers
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5.
Food and grocery market in India is among the six largest in the world; food
and grocery retail contributes to 70 per cent of the total retail sales.
According to industry estimates, the segment is growing at a rate of 104 per
cent and is expected to grow to US$ 482 billion by 2020.
2007
2008
2009
2010
3-Year CAGR
682
640
617
3,755
76.6%
Food processing
482
798
1,555
1,865
57.0%
Sugar
1,543
2,010
1,099
1,660
2.5%
1,033
1,298
1,342
1,392
10.4%
Vegetable oils
313
650
821
845
39.3%
146
140
361
641
63.8%
Total
6,206
7,544
7,804
12,168
25.2%
Conversion: 1 US$=INR 45
During the Eleventh Five-Year Plan period (2007-2012), the Government has
initiated major infrastructure development programmes such as
establishment of mega food parks, cold chains, and facilities required for
value addition, preservation and modernisation.
Up to 2015, the projected investment in food processing industry is US$ 23
billion.
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Plastic carry bags are essential for confectionery, bakery products and
hygroscopic products such as sugar, salt and jaggery; they are also
preferred for packing meat, fish, poultry and other wet food-products.
The food processing sector grew at an impressive 14.7 per cent in 2008-09,
despite a global economic slowdown; the sector is expected to maintain a
steady annual growth of around 20 per cent over the next five years.
Table 7: Processed Foods Exports Growth
Exported Food
Processed foods
3-Year CAGR
20.1%
15.4%
24.1%
24.1%
11.7%
India ranks first, globally, in the production of milk and pulses and second in
the production of tea, fruits and vegetables. The country's share in world
food trade is just about 2 per cent; about 6 per cent of the food-items
produced in the country are processed in contrast to the western countries
where 60-80 per cent of the food items are processed.
With a population of over 1.20 billion and growing at 1.7 per cent per annum,
India is a large potential-market for food products.
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The Government's Vision-2015 action plan has set specific targets including:
tripling the industry size, raising processing level from 6 per cent to 20 per
cent, increasing value addition from 20 per cent to 35 per cent, and
enhancing India's share in global food trade to 3 per cent.
Despite the menace of disposal, plastic bags are preferred because they
emit lower green house gas emissions than paper bags, and consume less
energy than jute and other textiles.
Table 8: Application of Plastics in Food Packaging
Applications
Milk, water, juice, groceries, retail shopping, cereal box liners, etc.
Polypropylene (PP)
The purchase cycle for a variety of food products such as milk, dairy foods
and vegetables is still small, with only small quantities being bought each
time.
The food packaging industry is expected to gain significance as the shelf life
of foods increases and consumers are convinced of health and quality of
packed foods.
Development of cold chains that allow for larger amounts of fruits and
vegetables for processing.
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The market is also expected to grow as the variety of foods packed increases
to cater to the varied ethnicities of the country.
In the urban centres - busy lifestyles, heightened health consciousness, and
openness to international foods - make India a suitable market for prepared
foods.
Product
Investment
(US$ Million)
BOPET, BOPP
355
Uflex
Flexible packaging
material
150
Essel Propack
Laminated tubes
Relocated to new
facilities
Mexico
Manjushree Technopak
31
Harohalli
Description
Location
Expansion; to be
completed in 2012-13
Nasik
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The key growth segments in food and personal care sectors include the
following:
Convenience features such as spout and lids that can be reclosed, etc.
Laminates with barrier enhancement properties, without the use of foils and
metals.
Greater use of materials such as films with plasma coated SiO2 on PET or
BOPP and nano materials.
Product
Location
Swanson Plastics
Plastic film
North Goa
Creative Technoplast
PET bottles
East Sikkim
Positive Packaging
Thane
Shankar Packaging
Vadodara
Sholapur
Parakh Agro
Multi-layer film
Pune
Positive Packaging
Bengaluru
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6.
Company
Description
B.C. Jindal Group company; Established in 2003; Manufacturing unit at Nasik world's largest single location BOPTE and BOPP film plant; Among the 10
largest BOPET companies in the world; Products: PET films, BOPP films,
metalised films and coated films.
Uflex Limited
Inception in 1983; Manufacturing units in India and Dubai- FDA and BGA
approved; Products: polyester chip, BOPET, BOPP and CPP films (plain and
laminated), coated films, laminates, pouches, holographic films, inks and
adhesives.
Essel Propack
Paharpur 3P
Cosmo Films
Established in 1935; Products: foil and paper laminates, high barrier products,
holographic images, hot melt and cold seal coatings, preformed pouches.
Established in 1984; Among the five largest polyester film companies in the
world; Manufacturing units in India, Thailand and Turkey; Products: polyester
film.
Umax Packaging
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7.
In February 2011, the Ministry of Environment and Forests banned the use of
plastic materials in sachets for storing, packing or selling tobacco products.
The new rules, under the Plastic Waste (Management and Handling) Rules,
2011, also prohibit the use of recycled plastics for storing, carrying, or
packaging food stuff.
The new rules stipulate that plastic carry-bags must not be less than 40
microns thick; earlier, the minimum thickness required was 20 microns.
Thinner plastics are more difficult to dispose off.
8.
Gas Flush Packaging using MAP and CAP: packaging that maintains the
atmosphere inside the pack similar to what it was at the time of packing the
goods.
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Bag in box: collapsible bags in rigid containers for bulk packaging; the inner
bag is heat sealed.
PP Synthetic paper: water - and tear - resistant, recyclable paper for
applications such as currency notes, labels, writing material and machinery
manuals.
High refractive index polymers: for optical applications with the benefits of
light weight and cost-effective design.
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Figure 10: Projected Share of Capacity of Bio-based Plastics - 2020
Asia pacific,
12%
Europe, 26%
South
America,
18%
USA, 24%
Others, 19%
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