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Business Ideas in Packaging Industry. List of Profitable Small Scale Projects on Packaging Industry. Investment Opportunities in Packaging Business.

Friday, February 16, 2018

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Business Ideas in Packaging Industry. List of Profitable Small Scale Projects on Packaging Industry. Investment Opportunities in Packaging Business.

Production of Beverage Can, Bottles, Blister Packs, Carton, Bags, Plastic Bottles, Skin Pack, Tin Can, Boxes, Shrink Wrap, Barrel, Crate, Aseptic, Container, Active, Flexible, Rigid Plastic, Metal, Flexible, Glass, Paper Board, Food, Beverage


India is the second largest producer of food in the world and one of the major consumers of packaged foods and beverages. Increased consumer awareness and growth of the processed food and beverages industry are the major factors for a major shift from unpackaged vending to packaged forms of sale. The packaging industry in India is a mix of both organized medium to large player’s as well very small players. Domestic demand for packaging is expected to grow rapidly in coming years. FMCG companies are now widely adopting sustainable packaging technologies to reduce the cost of packaging as well as taking steps to ensure recycling of packaging material which also protects the environment.

The Indian consumer packaging market is estimated at around Rs 685 billion in 2015-16 and is forecast to reach Rs 1,170 billion by 2020-21, at an annual growth rate of 11.3%. The packaging industry in India is valued at Rs 1,270 billion (2015-16). Within the industry, with a 54 per cent market share, consumer packaging is ahead of its bulk packaging counterpart.

During the period 2016-2021, the Soft Drinks and Food industries will be the highest packaging market share gainers (by units) with share growth of 3.4% and 1.3% respectively. The growing organized retail sector has been a significant driver of the growth of the Food and Beverage industries, which in turn drives the growth of Indian packaging industry. In addition, innovations in the packaging industry, such as the development of lighter packaging with better barrier properties, add to the growth of packaging industry. In terms of packaging material, Glass and Rigid Plastics will be among the major share gainers, with share growth of 0.7% and 0.6% respectively during 2016-2021.

Indian packaging industry will see notable growth over 2016-2021, growing at a CAGR of 9.2% as compared to 6.2% during 2011-2016. The growth of the Indian packaging industry will be heavily influenced by changing demographics such as growing urbanization and the rising proportion of middle class consumers. These changes drive the need for new packaging formats, such as different sizes, materials, and strength. Strong favorable demographic factors such as increasing disposable income levels, rising consumer awareness and demand for packaged food are expected to drive the growth of packaging industry in India.

Flexible Packaging is the leading pack type in the Indian packaging industry and will grow at a healthy CAGR of 8.9% during 2016-2021, with major contributions from the Food, Household Care, and Cosmetics & Toiletries industries. This growth is largely driven by its low cost and flexibility to suit multiple shapes and sizes, convenience (zip-locks, plastic closures), and low-carbon foot print on the environment as compared to Rigid Plastics. In addition, the increasing prominence of low-density flexible packs in high protein foods is expected to drive the growth in the future.

Flexible Packaging Market is rapidly gaining momentum in the packaging industry validated from the market share records it made over the recent years. Flexible packaging held a 20% share of the overall packaging industry in 2015 which was then worth USD 400 billion. The growth trend is likely to continue in the years ahead with flexible packaging market size slated to surpass USD 250 billion by 2024, says Global Market Insights, Inc. The concept of flexible packaging is becoming prominent with the parallelly rising need of the manufacturers for a cost-effective, convenient, and less wastage involving packing techniques.

Increasing consumption of beverages coupled with the rising need for convenience is driving the market for beverage packaging in India. The Indian beverage packaging market is exhibiting robust growth with sustainable packaging being the need of the hour. Beverages accounted for 21% of the total consumer packaging market in 2014. Demand for consumer packaging from the beverage sector is expected to grow marginally ahead of other user sectors at around 12% till 2017. Main contributors to this growth include bottled water, fruit-based beverages and Carbonated Soft Drinks (CSD).

Beverage sector including bottled water, CSD, fruit drinks and flavoured milk is the largest user of caps and closures. ROPP (Roll-on Pilfer-proof) Caps are used for glass, plastic and metal containers. Major user segments include alcoholic beverages accounting for over 50%. ROPP caps are multi-coloured and are broadly categorised as printed caps, top embossed caps, knurl-embossed chamfered caps and side-embossed chamfered caps.

The beverage cans market size was valued at USD 39.19 billion in 2015 and is expected to witness significant growth over the forecast period primarily owing to superior cooling properties and storage space reduction by using advanced materials in beverage cans manufacturing. The industry is expected to witness high growth owing to increasing consumption of alcoholic beverages such as beer and cider which are required to cool at a specific temperature for enhanced taste.

The market is segmented by products into aluminum and steel. Aluminum beverage cans accounted for over 80% of the volume of the product in 2015 owing to their light weight and high molding abilities.

Glassis one of the most preferred materials for packaging of food, beverages, pharmaceuticals, and personal care products. Properties like excellent barrier properties, sterility, and reusability make it a superior packaging material. The other major advantage of glass packaging is that it can be molded into various shape and sizes, facilitating its use across different industry verticals.

India is amongst the top fifteen markets in the world, for glass packaging. Increased health consciousness, acquisition of advanced technologies and strengthening of consumer connect are the key drivers for the demand for glass packaging in the country. Though the country’s per capita consumption of container glass is currently low at 1.6 kg, this is expected to improve in the future. Glass is inert, odourless, impermeable, re-usable and infinitely recyclable and these properties make it a preferred medium for packaging.

Glass Packaging Market is projected to cross USD 65 billion by 2024. Healthcare industry is one of the leading driver for the glass packaging market. In 2016, the global healthcare industry revenue was around USD 1.6 trillion and will grow at an exponential rate in the forecast period. Increasing pharmaceutical products and medicines demand will propel the glass packaging market owing to its chemically inert properties towards the liquid syrups. Glass is a 100% recyclable product without degradation of purity or quality. It also has a negligible chemical interaction rate which makes it a favorable material for the packaging of medicines and other chemicals. These factors have driven the industry in the healthcare sector on a large scale.

Food and beverages are stored in glass containers and bottles as it is impermeable and non-porous. This makes it easy to keep intact and preserve the flavors and smell of the food and beverages. Close to 80% of the product that goes into the recycle bin is used to make new bottles. Rising health awareness and potential risks from plastic packaging have shifted consumer focus on glass packed products over plastic or metal. These aspects will propel the glass packaging market in coming years.

Growing consumption of glass packaging in pharmaceuticals along with food & beverages sector on account of its non-corrosive nature is expected to drive the demand. In addition, various properties including recyclability, non-permeability, and zero rate of chemical interaction make it suitable as a packaging material for various applications including beer, soft drinks, beverages, and medical.

Plastic packaging is a type of casing in the form of plastic containers, bags, pouches, and jars to be used for food & beverages, personal care products, household products, and industrial goods. High-density polyethylene (HDPE), low-density polyethylene (LDPE), polyethylene terephthalate (PET), polypropylene (PP), and polyvinyl chloride (PVC) are mainly used in plastic packaging. Plastics can be easily molded or altered into any shape as per the packaging requirement of goods. It is one of the fastest growing segments of the packaging industry. It combines the best qualities of plastic to deliver a wide range of protective properties while using minimum quantity of material. Plastic packaging is broadly used in consumer products, and in industrial applications. It is used to market, protect, and distribute a wide range of products.

Strong growth of global food and beverage market is mainly driving demand for plastic packaging. Swiftly expanding pharmaceutical and medical industry has been resulted into rapid growth of plastic packaging. Moreover, superior aesthetic value and excellent barrier properties of plastic against moisture and air are another important factor driving demand for plastic packaging. However, fluctuating prices of raw materials is one of the major challenges for the manufacturers of plastic packaging.

The market for rigid plastic packaging in India has grown well in the recent years and stood at about INR 184 billion equating to a volume of 1.6 million tonnes in 2015-16. The market is expected to grow at an annual growth of around 13.5% during the next five years. Northern region is by far the largest market for rigid plastics packaging and accounts for a share of 35%, followed by West at 32%.

Rigid plastic packaging products used for consumer packaging applications include bottles, jars, cups, tubs & pots, trays, tubes and pails. Polyethylene terephthalate (PET), high-density polyethylene (HDPE) and polypropylene (PP) are the commonly used polymers for the manufacture of rigid containers. Low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), polystyrene (PS) and polyvinyl chloride (PVC) are other polymers used in the Indian context.

PET bottles are the material of choice for beverage packaging applications while HDPE bottles are in good demand in food sector like dairy and cooking medium and in non-food sectors like hair care, skin care and pharmaceutical products. PP bottles and jars are mainly used for malted milk food, talcum powder, personal care and pharmaceutical


Here are few Projects for Startup:


Packaging has been assuming importance in the context of growth of industries in general and consumer industries in particular. Paper is one of the most important materials that enters packaging. It is extensively used for making boxes, bags, sealing tapes, drums and tubes and as cushioning materials. Read more


Kraft paper is one of the important papers for wrapping heavy bundles. It is used mostly in all types of packaging. Kraft paper is made from waste paper or discarded carton boxes, which are found abundantly in India, especially in metropolitan cities where consumption of paper and paper products are rated high. Read more


PET (also named PETE) is a kind of polyester material for fiber, injection molded parts, as well as blow-molded bottles and jars. Special grades are offered with the required properties for the different applications. PET is linear thermoplastic (long-chain molecule consists of repeating units shown as figure right). Read more


Polyethylene Terephthalate (PET, PETE or polyester) is commonly used for carbonated beverage and water bottles. PET provides very good alcohol and essential oil barrier properties, generally good chemical resistance (although acetones and ketones will attack PET) and a high degree of impact resistance and tensile strength. Read more


A wine bottle is used for holding the wine, generally made of glass. Some wines are fermented in the bottle; others are bottled only after fermentation. Glass bottles are used in various shapes and sizes by the different manufacturers of liquors. Read more


Printed paper shopping bags are more popular and good in appearance. They are now going to replace the poly bags. There is lot of use of poly bags in modern life due to various positive reason. Shopping bags are made by using fibre impregnated kraft paper in the bag making machine by using special type paper adhesive or by using stitching machine. Read more


Packaging is both a symbol of society consumption habits and reflection of its progress. The user experts it to have better strength, easier handling, to be lighter, more aesthetic, safer from a hygiene point of view, etc. In addition to its standard attributes. Read more


Pilfer Proof Caps (P.P. Caps) are popular all over the world which provide not only the above mentioned qualities to the bottle contents, but also a perfect seal which guarantees non-contamination from external environments. This ensures the contents to remain unaffected from atmospheric moisture, gases, dusts and other impurities. Read more


Expandable polystyrene (EPS) is a rigid cellular form of polystyrene with good thermal insulation and shock absorbing properties, high compressive strength, very low weight and resistance to moisture. These properties of EPS bring many benefits, in particular to the construction and packaging industries. Read more


Bottled water industry, colloquially called, the mineral water industry, is a symbol of new life style emerging in India. While a large segment of the population is struggling to get access to potable water supply, a new generation - especially in the urban areas - is getting accustomed to bottled water paying handsome prices. Read more


Packaging is both a symbol of society’s consumption habits and reflection of its progress. The user expects it to have better strength, easier handling, to be lighter, more aesthetic, safer from a hygiene point of view, etc. The manufacturer undertakes research and development to meet these demands and to offer a high quality product. Read more


Aseptic packaging systems have fundamentally changed the handling of sensitive liquid foods. Distribution and storage no longer require refrigeration, with the result that the shelf life of the package contents is considerably extended. Read more


Glass is so much a part of our daily life that we cannot imagine living without it. Glassware is used both by the consumer as well as by the Government and industry. The primary aim of packaging is to protect the product from air, light, heat, cold, moisture dust, dirt etc. Read more


Fruit juice in aseptic packaging is basically used to quench the thirst and to get refreshment. In aseptic packaging juice can be preserved for 6 months or more. It is convenient to use, easy to sip and a source of minerals and vitamins. There is good domestic as well as international demand. Read more


Aluminium is an abundant metal and is readily available at a very stable price. Aluminium foil is being produced and converted on the most modern machinery. The foil industry is not content, however, to rest on its laurels, and new uses for foil, and improved foil specifications for existing uses, are constantly rought. Read more


The aluminium aerosol can has been one of the most popular packaging materials for cosmetics, pharmaceutical and household items for decades. In addition to its ability for recycling in 100%, this modern packaging material meets all relevant European Standards. Read more


A collapsible tube is defined as a cylinder of pliable metal that can be sealed in such a manner that its contents, although readily discharged in any desired quantity, are protected from contact with air or moisture. Products so packaged must flow under pressure low enough not to damage the tube. Read more


A large number of grades of paper, board and cardboard are available for packing and are employed for many different purposes. A great variety of papers are used for packaging. These range from simple WP wrapping paper to Kraft paper, which is made predominantly in rolls from various pulps or from mixtures of pulp and wastepaper. Read more


Aluminium is the most widely used non-ferrous metal and is extensively used in packaging materials. It is an excellent material for creating all types of containers. However, despite the fact that about seven billion aluminium foil containers are produced annually, Read more


Products, such as tomato paste/puree have potential demand with local fruit/vegetable processors as well as the retail market. Establishment of tomato processing facilities in the country can contribute in reducing the dependence of local industry on imported tomato paste. Read more


Sugar cane is a C4 plant with a high rate of photosynthesis (its rate lies around 150 to 200% above the average for other plants). It is a perennial crop with a high self-tolerance. Sugarcane juice is a popular refreshing drink in many parts of World. Often sugarcane juice is used as a remedy for jaundice in folk medicine. Read more


An intermediate bulk container (IBC) is purpose built tank or container used to store or transport bulk fluid and dry materials. IBC containers are usually made of plastic, steel, or stainless steel and feature cages or bases designed for easy use with material handling vehicles such as forklifts. Read more


Shrink sleeve labels are sleeves constructed from film material that, rather than using adhesive, shrinks to a product’s surface when heat is applied. This type of labeling allows the graphics to be printed around the entire circumference as well as take the shape of the product’s container. Read more


Paper cores are strong cardboard tubes or cylinders which are used in fabric, adhesive, electrical, paper product and converting industries as a sturdy base around which to wind materials for storage or distribution. Read more


Composite can is composed of a can body; - a top closure; and - a bottom closure. It is also sometimes called a Combi container. It has a convolute wound, spiral wound or linear draw formed rigid body, involving several layers of materials, including recycled and virgin paper, foil and plastics in various combinations, Read more


Aluminium foil is one of the most versatile packaging medium. The growth of this industry has been in the recent past, owing to the growing application of foil in a variety of products. Aluminium foil is regarded as unique material amongst flexible packaging materials. Read more


Plastic Carry Bags (HM-HDPE/LDPE with 10/12 colour printing)

Plastic Carry Bags like high molecular high-density poly ethylene (HM, HDPE) has good stiffness and high initial tear and propagating resistance. They do not impart any taste or odour and are suitable for food contact applications. Read more


Plastic, today, is being increasingly utilized in almost every industry and activity. Its use has become indispensable due mainly to certain inherent properties like light weight, corrosion of chemical resistance etc. Plastic in many areas is not only a strong substitute but superior as well. Read more


PVC is present in virtually all areas of human activity. PVC is a chlorinated hydrocarbon polymer. Its basic building blocks are chlorine, carbon and hydrogen. These elements are obtained from sea salt (sodium chloride) and crude oil or natural gas, both of which are mixtures of hydrocarbons. Read more


A glass bottles are bottles made up of glass, which are used for handling liquid, paste or powder products from beverage, cosmetic or pharmaceutical industries. Shape, color and size of glass bottles may vary according to clients demand, architecture and strength. Read more


In the field of packaging thermoplastic film has been widely accepted as an efficient flexible packaging materials. Co-extruded multilayer blown film was introduced a few years back in the field of packaging. It is being used in the packaging of milk, edible oil, and shampoo and for packaging of some of ready to eat snacks. Read more


This is the most common method of blow moulding. There are two possible methods, which may be used-intermittent extrusion or continuous extrusion. For extrusion blow moulding materials having high hot strength and hot elongation are preferred. Read more


Thermo Cole is natural snow-white, feather light common product density range 15-35 kg per, a material with rare combination of physical and chemical properties. Thermo Cole or expanded polystyrene as the name suggests, is polystyrene expanded to more than two times the volume of polystyrene. Read more


BOPP adhesive tape, which is quite a recent development in the field of modern packing. It is a pressure sensitive self-adhesive tape. BOPP film is classified in the clear film category along with cello, PET, PP tubular and PVC film, which are popularly used, by packing industry and converters. Read more


PP BAGS FOR CEMENT PP/HDPE oriented sacks are becoming popular through out the world. This is because they are chemically inert & are water repellent & lighter in weight. They are free and possess sufficient strength and can easily be handled. These bags are expected to substitute jute and craft paper bags in several areas. Read more


A drum is a cylindrical container used for shipping bulk cargo. Drums can be made of steel, and are generally used for the transportation and storage of liquids. Drums are often certified for shipment of dangerous goods. The construction of drum needs to meet applicable regulations and is usually matched for compatibility with the specific product shipped. Read more


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