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8 LIMITATION 39
9 SUGGESTION 40-41
10 RECOMMENDATION 42-43
11 CONCLUSION 43
12 BIBLIOGRAPHY 44
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EXECUTIVE SUMMARY
Discover the latest market trends and uncover sources of future market
growth for the Packaged food industry in India with research from team of in-country
analysts.
If you're in the Packaged food industry in India, our research will save
you time and money while empowering you to make informed, profitable decisions.
When you purchase this report, you also get the data and the content
from the category reports in India for free.
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CONCEPT OF TOPIC
PACKAGED FOOD POSTS HEALTHY GROWTH IN 2017
Essential commodities like edible oils, dairy products and alternatives
contributed significantly to the double digit growth posted by packaged foods during
2017. The shift towards packaged food from unpackaged unbranded products,
premiumisation trend, competition among bigger brands and performance of smaller
categories is fuelling growth within packaged food.
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GROWING NECESSITY, CONVENIENCE AND
AVAILABILITY TO DRIVE FUTURE GROWTH
Packaged food will continue to post double digit growth over the
forecast period, mainly due to rising demand for convenience as a result of the
increasingly hectic pace of modern life, as well as growing awareness and availability.
Essential commodities like edible oils, dairy, rice, bread and breakfast cereals are
dietary cornerstones and will fuel demand among consumers, while products like
biscuits, savoury snacks, confectionery, spreads, soups, noodles, pasta and ice creams
will remain the most dynamic categories over the forecast period.
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COMPANY PROFILE
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The company was incorporated in June, 1987 as Raj Packaging
Industries Pvt. Ltd., and it was converted into Public Limited company in may 1992
and changed the name as Raj Packaging Industries Ltd. The company has
commenced its commercial production in June 1989 by installing very sophisticated,
imported co-extrusion machines from M/s Paul Kiefel, Gmbh of Germany. The
Installed capacity was 600 MTs p.a and soon achieved this full capacity utilization.
The company had gone for expansion and put up another plant in the year 1995. The
company has added another co-extrusion machine in the year 2005. Today
company’s having total capacity of 2400 Mts. P.a consisting of two three layer
machines and one five layer machine.
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INTRODUCTION OF THE TOPIC
Apart from the huge value addition and employment involved in these
activities, packaging has served the Indian economy by helping preservation of the
quality and lengthening the shelf life of innumerable products - ranging from milk and
biscuits, to drugs and medicines, processed and semi-processed foods, fruits and
vegetables, edible oils, electronic goods etc., besides domestic appliances and
industrial machinery and other hardware needing transportation. With water becoming
a consumer product, polymer material-based bottles are becoming a universal
presence.
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The packaging industry’s growth has led to greater specialization and
sophistication from the point of view of health (in the case of packaged foods and
medicines) and environment friendliness of packing material. The demands on the
packaging industry are challenging, given the increasing environmental awareness
among communities.
A. FUNCTIONS OF PACKAGES:
B. CLASSIFICATION OF PACKAGING:
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2. By Methods (Way of Packing)
3. By Contents
4. By Materials
Rigid Packaging
Bottle, Metal Can
Wooden Box
Metal Box, etc
Semi Rigid Packaging Flexible Packaging
Carton Box Paper, Plastic
Plastic Bottle Film, Alu- Foil
Cellophane
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III. INDIAN PACKAGING INDUSTRY MARKET:
The Indian packaging industry itself is growing at 14-15% annually. This growth
rate is expected to double in the next two years.
According to the Indian Packaging Institute, Indian Packaging industry is USD 14
billion and growing at more than 15% p.a. These figures indicate towards a change
in the industrial and consumer set up.
The growth in the packaging industry in India is mainly driven by the
food and the pharmaceutical packaging sectors. The large and growing Indian middle
class, along with the growth in organized retailing in the country are fueling growth in
the packaging industry. Another factor, which has provided substantial stimulus to the
packaging machinery industry is the rapid growth of exports, which requires superior
packaging standards for the international market. With this the need for adopting
better packaging methods, materials and machinery to ensure quality has become very
important for Indian businesses.
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MARKET DATA:
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Increasing investments by both domestic and foreign companies in the Indian
food processing sector, especially in beverages, dairy products, processed food, edible
oil, and marine products have expanded the market for packaging machinery. The
food processing industry has contributed in a major way to the growth of the
packaging industry. According to the Indian Institute of Packaging (IIP), only two
percent of India’s total processed food is packaged compared with 70 percent in
western countries. This forecasts large growth in this sector.
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II. PHARMACEUTICAL PACKAGING & SITUATION IN INDIA
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FACTORS AFFECTING GROWTH OF PACKAGING
INDUSTRY IN INDIA
1. URBANIZATION
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4. INDIAN ECONOMY EXPERIENCING GOOD GROWTH PROSPECTS
India comprises of a big rural market and there has been growing focus
on rural marketing, whereby manufacturers are introducing low-priced goods in
smaller pack sizes. Low priced sachets have proved to be extremely popular in
smaller towns and villages, where people do not prefer to buy larger packs due
to financial constraints.
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8. OTHER PROSPECTS
One area that has been identified as having good market potential is
equipment for manufacturing aluminum beverage cans. Machinery for
cleaning and drying containers; automatic high speed labeling machines and
capping machines; sealing machines for cans, boxes, and other containers;
machinery for filling, and closing bottles and cans; packing/wrapping
machines; and moulding machines also offer good prospects.
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KEY SUPPLIERS
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OBJECTIVE OF THE TOPIC
To motivate the food processing industries for adoption of food safety and
quality assurance mechanisms such as TQM including ISO 9000, ISO 2200.
To prepare them to face global competition in post WTO Regime.
To enable adherence to stringent quality and hygiene norms.
To enhance product acceptance by overseas buyers.
To keep Indian industry technologically abreast of international best practices.
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CHARACTERISTICS OF PACKAGING FOOD INDUSTRY
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PROS AND CONS OF PACKAGED FOOD INDUSTRY
Packaged foods are considered the best alternative for cooking. Living
in a hostel has made me dependant on them to quite some extent. Here, I would like to
highlight some pros and cons of packaged food. But before talking about them let’s
know about some of the packaged food items. These are ready to eat meals, instant
mixes, canned food, vegetables and fruits, chutney pastes etc.
First let’s talk about its pros. Packaged foods are considered a boon for
people living away from home. They are ready to eat at any point of the day. Also
they are convenient to keep and store. They need not be wrapped nor kept in
containers for storing.
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They are found safer and less vulnerable to contamination than the
unpackaged food. Though the Food and Drug Administration (FDA) have their doubts
on the safe use of recycled packaging, yet they are known to be safe. The shelf life of
such food products is more. They last longer and stay fresh for a longer period.
After talking about all these benefits let’s have a look at their
disadvantages. Food packaging results in a lot of waste. It has accounted for a large
amount of waste in US. Packaging accounts for a percentage of all food
manufacturers’ costs, therefore increasing the final cost of the food and making it
more expensive than unpackaged food.
In the end it could be said that like all other the things packaged food
also has its positive and negative characteristics. And as said too much of everything
is bad, it goes true for this as well. It is for us to decide to what extent we will indulge
in these food items.
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TYPES & FORMS OF PACKAGED FOOD INDUSTRY
The above materials are fashioned into different types of food packages
and containers such as:
Packaging Type
Aseptic
Primary Liquid whole eggs or dairy products
processing
Cartons, coated
Primary Carton of eggs, milk or juice cartons
paper
Flexible
Primary Bagged salad
packaging
Wrappers Tertiary Used to wrap the boxes on the pallet for transport
Primary packaging is the main package that holds the food that is being
processed. Secondary packaging combines the primary packages into one box being
made. Tertiary packaging combines all of the secondary packages into one pallet.
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ROLE IN BUSINESS OF PACKAGED FOOD
INDUSTRY
Hence, this review paper includes the recent advances in food packaging
sector, which include active packaging, intelligent packaging, smart packaging, non-
destructive inspection methods, printing techniques, applications of robotics and
machineries, automation, architecture, software systems and interfaces.
Worldwide, the sales of processed foods are estimated to be $2 trillion
whereas that of packaged food range around$1 trillion. This is due to the enhancement
in the incomes in developing countries which has resulted in rise in standard of living
for their population. Further, people are opting for processed foods rather than foods
like rice and barley.
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ADVANCEMENTS IN PACKAGING MATERIAL
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OXYGEN SCAVENGERS
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ETHYLENE ABSORBERS AND ADSORBERS
Different machines are used on the production line for various foods.
These are cartooning, wrapping, labelling, shrinking, sealing, case and tray forming,
capping, cooling and drying, feeding, palletising, picking and placing (robotic system),
cleaning and sterilising along with the inspection and detection and so on. Robotic
system can be used for packaging of meats and chocolates into the trays at a faster rate
and also they fulfil the hygienic requirements as well. This system can handle four
production lines and multiple product types at a time.
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SAFETY, TRACEABILITY AND SUPPLY CHAIN
The main concern of food packaging is food safety, as many people die
because of food poisoning. Food safety regulations are given by FDA to overcome
such problems. Traceability is very important not only for food safety but also for the
authenticity of the product. Traceability is considered to be the entire information for
each step in the process chain. For this, barcoding and radio frequency identification
(RFID) systems are used. Radio frequency identification can easily monitor and track
the temperature, humidity and so on and also, manual scanning is not required in it.
Moreover, research is being carried out over development of biosensors and
interfacing devices like micro fluidic systems.
AUTOMATED INSPECTION
The printing inks used should be safe to use and must be made from
organic compound. For plastic cartons or rappers, flexography printing process can be
used. The electron beam printing procedure can also be used which prevents the usage
of heat and light for coating and drying of adhesives.
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CURRENT SCENARION
Right from the cultivation and harvest of crop, upto the consumption of
product by consumer, there is certain degree of value addition in every product. This
value addition can be of numerous types. As it goes from producer, to wholesaler, to
retailer and finally to consumer, every stage adds some value to the product. In this
value chain there may be value addition by Sorting, grading, packaging, branding etc.
These activities not makes product attractive, more usable, gives choice and
awareness to customers and also enhances shelf life of products. Apart from this
service rendered by intermediaries to pass on product from producer to customer is
also valuable.
Most of the agricultural products are not consumable in their original
form, for which they are processed. Wheat is converted into flour, Paddy into rice,
sugarcane into jagery, Sugar, ethanol, alcohol etc. These products can be further
processed such as flour into bread. Apart from this, left over part of crop such as risk
husk can also be processed to get some useful product for e.g. Rice Bran oil, cattle
feed, Sugarcane bagasse can be used for power cogeneration.
Hence, food processing not merely adds value to the agro products, but
also increases their utility. We know that activities in an economy are broadly divided
into Agriculture, industry and Services. Food processing Industry is the product of
agriculture and Industry.
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India has about 26 types of different climatic conditions, 46 varieties of soils
are there in India out of total 60 types of soils worldwide. 127 ‘agro climatic zones’
have been identified in India. Also, Indian food is known worldwide for its unique
taste and aroma.
India’s regional and cultural diversity is perfectly reflected in food.
Every state in India has something unique to offer. For e.g. South Indian, Gujrati,
Bengali, Rajasthani and Punjabi delicacies are different and are admired in many parts
of the world. But they haven’t been able to make inroads in other countries the way
Mc Donald’s, Domino’s etc. has done in India. This is because lack of creativeness,
innovation, branding and most importantly shallow pockets of Indian manufacturers.
India is largest producer of Pulses, Mangoes, Banana, Milk, ginger,
Buffalo meat and 2nd largest producer of rice, wheat, potato, garlic, cashew nut,
groundnut, dry onion, green peas, pumpkin, gourds, cauliflowers, sugarcane, and tea
in the world. We produce 17 per cent of the global total of vegetables and 14 per cent
in the case of fruits. About 40 percent of the world’s mangoes and 30 per cent of the
world’s bananas and papayas are produced in India. Further, India has many unique
things to offer such as Alphonso Mangoes and wheat of Madhya Pradesh is uniquely
protein rich.
No surprise, that India is net exporter of agricultural products. But
value addition of Indian product remains quite low. Indian Manufacturers haven’t
moved much ahead in value chain. Say If mangoes are processed in to Mango Juice or
pulp; it will result in more value addition, industry, employment, GDP and foreign
exchange, but we export mainly mangoes as it is.
Indian agriculture is infested with post-harvest wastage problem. In
category of fruits and vegetables it is about 30-40%. Overall, cost of wastage is
estimated at about 18% ranging from 50000 crores to 1 lakh crore. Wastage is
attributable to several factors including non-availability of facilities for sorting,
grading, packaging, storage, transportation, cold chain and low level of processing of
agricultural produce. Food processing can halve this loss.
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GLOBAL SCENARIO
Food processing is one of the largest global sectors at $7 trillion annual
production. Look around and you’ll find companies of Cold drinks, Wafer chips,
Juice, restaurant chains to be among biggest ones. Italian pasta and pizza is now
consumed in almost all countries, so are the burgers and sandwiches. Sugar free
products, cornflakes, oats, ketchups etc. are among most demanded consumer goods.
Currently only 2 % of India’s vegetable and fruits production is processed. In
comparison USA and China processes their 90% and 40% produce. Other developing
countries, such as Thailand, Philippines, and Brazil are processing as high as 30, 78
and 70% of their produce.
India’s food processing sector ranks fifth in the world in exports,
production and consumption.
Importance of this sector is significant and it deserves a priority
treatment by government. Accordingly sector has been made part of ambitious ‘Make
in India’ initiative.
INFRASTRUCTURE
SUPPLY CHAIN –
Any product is mobilized from producer to consumer to be consumed.
This route is called supply chain. This movement involves both time and costs.
Lengthier supply chains will push prices upward and result in more wastage. In last
articles regarding marketing of agro-products we came across various government
policies and institutions, which among other things, increase number of
intermediaries. Adequate storage facilities, direct farming, contract farming and
negotiable warehouse receipt system are mechanisms to streamline, strengthen and
shorten the supply chain.
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STORAGE OF FOODGRAINS –
FCI deals only in food grains and about 67 per cent of the storage
capacity is concentrated in the six major procuring states namely, Punjab, Haryana,
Uttar Pradesh, Andhra Pradesh, Rajasthan and Uttrakhand. Several States have
emerged in recent years as important states for foodgrains procurement, namely,
Bihar, Odisha, Jharkhand, West Bengal, Madhya Pradesh and Chhattisgarh presently
account for 13 per cent of the current storage capacity.
Under the National Storage Policy, the bulk grain handling facilities are
now being created on the Built Own Operate (BOO) basis at identified locations in the
country. Much of the problem here can be relieved by timely offloading of stocks.
Nearly 96 per cent of cold storages are in the private sector and about
75 percent capacity of cold storages is used to store only potatoes while another 23 per
cent fall under the multi-product category.
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FUTURE PROSPECTS OF PACKAGED FOOD
INDUSTRY
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- Mark Smyth, Business Development & Marketing Intelligence Director, Metal -
Europe, Ardagh Group
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With our new investigation you will gain business research and analysis with
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What are the prospects in the leading regions and countries?
Events and progress worldwide will influence the market.
In our study you will find individual revenue forecasts to 2024 for 14 leading national
markets:
• USA
• Japan
• Germany
• France
• China
• UK
• Italy
• Canada
• Spain
• Australia
• South Korea
• Brazil
• Russia
• India
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WHAT ISSUES WILL AFFECT THE FOOD PACKAGING MARKET?
Our new report discusses issues and events affecting the food packaging market. You
will find discussions, including qualitative analyses:
• Revenues forecasts to 2024 for the overall world food packaging market and 6
submarkets - discover the industry's prospects, finding promising places for
investments and revenues
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• Investigation of competition and opportunities influencing sales.
With our survey you are less likely to fall behind in knowledge or miss
opportunity. See how our study could benefit your research, analyses, and decisions.
Also discover how you can save time and get recognition for commercial insight.
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LIMITATION
Some of the pertinent issues are hygiene, toxins in packaging, environmental
effects and consumer protection.
Packaging reduces exposures to contaiminants in the air and bacteria during
handling, which can lead to illness – including food poisoning.
Food packaging increases the cost of food.
Packaging is responsible for significant portion of the waste stream.
Products with more packaging also use more resources in production.
Harder to control fat, salt and sugar levels.
Cost per serving may be higher thant homemade.
Convenience food are typically high in calories, fat, saturated fat, sugar, salt
and trans- fats.
They tend to lack freshness in fruits and vegetable.
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SUGGESTION
Suggestions to strengthen the processing sector are as follows:
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4. TAX ISSUES AND PERSPECTIVES:
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RECOMMENDATION
The food industry in India is yet to fully develop. Presently, only about
2 per cent of fruits and vegetables are processed. Other agricultural products
processing does not go much beyond the primary stage. Looking at the potential,
food processing industry can grow at more than 20 per cent per year. Accelerated
development of food industry will not come by itself and would not be qualitatively
good unless positive steps are taken by all stakeholders. The Conference addressed
these issues and made the following recommendations.
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CONCLUSION
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BIBLIOGRAPHY
Food Politics: How the Food Industry Influences Nutrition and Health :
M Nestle
WEBLIOGRAPHY
www.google.com
www.scribd.com
www.wikipedia.com
www.rajpack.com
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