Packaging Industry Overview

Packaging industry and packaging film industry is growing and acquiring a comprehensive shape in the market. It is actually the type of packaging industry that defines its growth along with many other factors. Like healthcare packaging material has 5% growth rate whereas it is 3.2% for the beverages.

Global packaging industry can be divided into four basic groups depending upon the type of material used. These segments are plastic, paper and board, glass and metal. Out of these paper and board is the largest segment that accounts for 36%. It is followed by plastic, then metal and at last the glass.

Global Packaging Industry Overview

Global packaging industry is growing swiftly and ready to meet the tomorrow's trends although the global recession of 2009 has also affected the sales of the packaging products and packaging films. During recession a decline in the global packaging sales has been observed which is about 2.6% in 2009. But the global packaging industry has regained its original growth in 2010 and expected to reach $739.9 billion by 2014. The annual growth rate is 3.1%. With such a high growth rate, the global packaging industry has become an integral part of product marketing, merchandising, food chain and logistics. 70% of the sales is estimated in the consumer market and rest of the 30% in industrial market. In consumer market the food industry is the biggest industry using the packaging films and material. After this comes the beverage industry.

If we look at global packaging industry then the highest concentration of packaging industry is in North America, then comes the Europe. After this the Asia-Pacific and at last Latin America.

There are about 100,000 companies to represent global packaging industry and 45% of the total sales is through the top 100 companies. The growth at the global level needs more advancement in the technologies as the packaging industry is still the low and worst performing segment as per the world's stock markets. For growth, the packaging companies should allocate more R&D budget and reduce the difference between low productivity and high cost.

Top Ten Global Packaging Companies According to Fortune 500

• Owens-Illinois
• Crown Holdings
• Smurfit-Stone Container
• Ball
• MeadWestvaco
• Sealed Air
• Sonoco Products
• Temple-Inland
• Bemis
• Greif

Packaging Industry in India

In India the retail sector has acquired a burgeoning and very well organized shape. This has given a boost to the packaging industry. From every big to small industry is focusing its attention towards the packaging. Indian packaging industry is growing at the rate of more than 15% p.a and expected to touch USD 14 Billion in the present financial year. The growth is expected to be doubled in the coming two years.Growth of the packaging industry in India can be seen mostly in the Second-tier cities where packaging plays an important role in the launch of new products. Big giants like Hindustan Unilever Ltd, Nestlé India Ltd, ITC Ltd, Procter & Gamble India Ltd, PepsiCo India Ltd, Coca-Cola India Ltd and Dabur India Ltd have also become quiet aggressive in this form of advertisement. The growth of the packaging industry is India is because of the low manufacturing cost. Owing to this reason, flattened cans, crown cork, plastic films laminates, paper board, packaging machinery, lug caps etc are exported to other countries. Fastest Growing Segment - laminates and flexible packaging such as PET and woven sacks

Also the growth in the packaging industry in India is attributed to the increase in the number of joint ventures and partnerships with foreign companies.

Not only the growth but growth with environmental concern is the aim of the packaging industry in India. Stake holders in Indian packaging industry are holding on environmental concern. In this the Indian Center for Plastics in the Environment is quiet active in promoting the awareness. Then the Ministry of Environment and Forests (MOEF) is playing its role in creating awareness towards waste management materials. Corporations and packaging companies are playing their part by adopting the greener technologies.

Now in order to compete at international level the Indian packaging film industry has to be according to the international packaging standards. This can be done by bringing in the new and innovative technologies.

Top Packaging Companies in India

• Parksons Packaging System
• ITC Limited
• Tata Tinplate Company of India
• Hindalco
• Moldtek Technologies Limited
• Gujarat Glass Ltd
• Advance Packaging
• AMAC Plastic Packaging
• E C Packaging Pvt. Ltd
• The Paper Products Limited

World Packaging Industry Association