Food packaging at $55bn by 2020, says Exim study
The Indian packaging sector is expected to reach US$72.6 billion by 2020, growing at a CAGR of 18% during 2016-21, according to a study by Export-Import Bank of India (India Exim Bank).
The food packaging industry is expected to reach around US$55 billion by 2020, it said in a release on 4 Sept 2020.
Propelled by rising urbanization, growing the largest pool of young and middle to high-income population and increased preference for safe and convenience food, the industry is slated to undergo a transition from loose to packaged, processed food and beverage products in the next five years.
With E-commerce in India projected to grow rapidly at a CAGR of 27% from 2017 to 2026, to reach US$200 billion, transit packaging and omnichannel packaging are emerging as the most potential segments where the Indian packaging industry has considerable scope of expansion.
India Exim Bank shared the study findings through an interactive webinar on the theme ‘Packaging Sector – Potential and Way Forward’, on 4 September 2020.
The webinar also highlighted the potential areas of growth for the Indian packaging sector, as also to proffer key strategies for the sector to become internationally competitive.
The Study, ‘Packaging Sector – Potential and Way Forward’, analyses key aspects of the sector’s competitiveness in the international market, identifies major challenges for the sector in India, predominantly focussing on food packaging, and recommends pertinent strategies for alleviating the concerns.
The Study recommends package manufacturing and packaging services as the two potential segments for the Indian packaging sector and developing the traditional packaging manufacturing units in the MSMEs with appropriate policy interventions.
The Study also recommends encouraging public-private partnerships in establishing Packaging Parks at Centers where manufacturing clusters are active, which may help in scaling up the objectives of MSMEs and enhance their productivity.
The study also highlights the role of R&D in the sector’s development and the need for scaling up investments in R&D in the sector significantly.
From the perspective of capacity building, the Study suggests increasing the number of institutions in the area of packaging education and training, strengthening of Indian Institute of Packaging (IIP) with appropriate investment, and also including packaging education in Central Government’s Skill India Program.
The study was released by the Chief Guests for the webinar Subodh Gupta, Chairman, IIP; and Dr. Tanweer Alam, Director, IIP.
Speaking on the occasion, Gupta highlighted the importance of packaging as an essential component of product development and safety of the final products, especially at the backdrop of the COVID pandemic.
Gupta also recognised India Exim Bank’s efforts in bringing out the Study and the long-drawn impact of the recommendations on the industry.
Adding on to Gupta’s views, Dr. Alam, Director, IIP highlighted the role of IIP as a growth driver for the Indian packaging industry particularly in the areas of export packaging of hazardous goods.
“The packaging sector is of paramount importance and plays a vital role in the international trade of goods,” said David Rasquinha, Managing Director, Exim Bank.
“With international trade being at the focal point of the narratives of ‘Atmanirbhar Bharat’ and ‘Vocal for Global’, there is a need for cohesive efforts at all levels of product development to prepare the domestic industry for achieving these objectives,” Rasquinha said. #exports #manufacturing #packaging #investment /fiinews.com
