KIT: Food Packaging in India

Strategic tools for the practising manager

The Indian food and FMCG packaging market has witnessed a growth of 15-20 per cent annually. More than 80 per cent of the total packaging in India constitutes rigid packaging. The remaining 20 per cent comprises flexible packaging.

The changing technology in the food packaging arena has uplifted the quality and shelf life expectations of food products. To tap the current consumer landscape, manufacturers have to adopt impact creating, innovative and unique packaging solutions. With stagnant productivity and increasing food wastage, food packaging is becoming one of the vital courses of action.

Some of the recent industry trends in the food and FMCG packaging companies include multi-dimensional shifts towards aseptic packaging and retort pouches, innovative packaging material that can overcome food poisoning issues for chicken, red meat and fish, introduction of flavour and odour absorbing films/ sachets to reduce the transfer of aroma between components of packaged food and FMCG products and use of digital technology has been introduced to contribute to the freshness of food items.

Food packaging sector is hampered by many challenges, high taxes and elevated import duty. Indian packaged food and FMCG products face stiff competition from low taxation countries such as China and Thailand in the global market. Lack of indigenous suppliers of quality packaging material also restricts the growth of the sector.