Opportunities of Packaging in Food Marketing

The Supreme Court of India has banned the usage of flexible plastics/sachets for tobacco products and the use of thin plastic carry bags in retail shops. Everyone has a role to play in preventing plastic pollution, not just waste management providers. We have a responsibility to the environment, but also to the economy and society. 

Domestic as well as export marketing has come a long, long way. In the earlier days, we never had massive grocery chains and club stores that forced companies to constantly try to one-up their competitors for the coveted '3-5 second attention' of a consumer walking down a store. Now stores are huge with abundant shelf space; multiple brands of different companies show case everything from soup mix to cereal, spices and what not. Marketing these days is a battle and usually at the centre of that battle is Packaging. Packaging needs to be innovative, quality and customer focused. It's said that packaging is the "HMV' of one's brand. Marketing can really be brutal and should not be taken lightly. Many companies spend massively to come up with innovative designs and styles, which are different and unique to get noticed. For example, eliminating glass jars and bottles for a thinner plastic container makes much sense. Thinner plastic containers are not only less expensive but also easier to stock (these take up less room on a store, shelf etc). The second key of marketing is being quality focused. Everyone talks about having great quality, but the best way is to produce and maintain it through packaging. Customer focus is the third key of marketing. It entails an effort to understand the customer, what they want and need while (and simultaneously) protecting the product. If a product is to compete and win at the retail bastion, there is a need to ensure that it is packaged properly for optimal consumer satisfaction.

In India, flexible packaging is the fastest growing subsector. Plastics dominate the Indian flexible packaging industry, as plastic is aesthetically attractive, cost-effective and sturdy. Plastic industry continues to grow rapidly, driven primarily by pharmaceuticals, foods and beverages. Furthermore, plastics improve the hygiene quotient and shelf life of products. The flexible packaging segment is estimated to be growing at a rate of over 35 percent annually. In general, the demand for packaging is growing because of rising population, increasing income levels, changing lifestyles, increased media penetration through the internet, television and growing economy.

The food processing sector is one of the biggest users of flexible packaging, accounting for approximately more than 50 percent of the total demand. As discussed, packaging market is primarily driven by the pharmaceuticals and the food and beverage industries. Huge investments in the food processing, personal care and pharmaceutical (essentially end-user) industries are creating scope for expansion of the packaging market. Growth of the packaging industry in India is largely driven by various logistic applications, technological advancements and an overall development of the packaging sector.

Plastic packaging is an unusual sector in that it cannot exist on its own. The nature of packaging is such that it is intertwined with other industries, such as food and drink, personal care, pharmaceuticals, chemicals etc. It adds value to various manufacturing sectors including agriculture and the FMCG segments. Role of packaging is vital to commercial success and plays a key marketing role of both consumer and products.

In India, the demand for flexible packaging is very high due to its comparative lower cost and continued innovations. Because of the lower purchasing capacity in rural and semi-urban India, its demand has further increased. Today there is an entrenched demand for smaller pack sizes called "sachets" and "pillow packs" on a range of products like shampoos, tooth pastes, face creams etc. Moreover, rural income growth and rising inflation has also caused a shift towards smaller pack sizes, in flexible packaging. Growth in this sector is expected to further continue due to some recent innovations in this category like re-closable packs and packs that have a spout and screw cap; which can be used to package condiments, sauces, juices etc. The food and beverage application segment led the global plastic packaging market in 2020 with a revenue share of over 51%.

Plastics are strong, durable, lightweight and save in terms of both cost and material resources over the alternatives. Plastics with its wide variety of processing techniques permit the manufacture of packaging in an infinite variety of shapes, colours and technical properties. Practically anything can be packed in plastics - liquids, powders, solids and semi-solids. Because it is lightweight it has an added advantage – commodities and products packaged in plastics can be easily transported. The durability and sealability of plastic packaging protects goods from deterioration and increases shelf life. Flexible packaging helps in terms of aroma retention. It also seals the product from heat and is a good barrier against moisture and grease. With modified atmosphere packaging made from plastics, shelf life can be increased from 5 to 10 days, facilitating reduction of food loss in stores from 16% to 4%.

Most of the food that we buy from supermarkets comes wrapped in plastic, whether it is our cereal, bread, sugar, vegetables or meat. The end result of plastic packaging is that it helps to retain value in the economy. Food items and goods that are protected by this packaging are sold at full price, which means that shop owners, suppliers and manufacturers benefit at the end of the day. Preventing damage to goods during transport is important and will also keep costs low.

Plastic packaging allows the economy to function properly, securing jobs and minimizing losses through damage or contamination. Plastics are highly versatile and useful materials – they just need to be reused and recycled as much as possible. The Supreme Court of India has banned the usage of flexible plastics/sachets for tobacco products and the use of thin plastic carry bags in retail shops. Everyone has a role to play in preventing plastic pollution, not just waste management providers. We have a responsibility to the environment, but also to the economy and society. Many a time, companies view their product packaging as an afterthought and time, money and care goes into the meticulous creation and perfection of the products in their profile/product portfolio. However, if it's not packaged properly, all those efforts will go to naught. Leading brands understand the importance of packaging. They understand that it is an essential part of their branding and marketing efforts. Packaging is the signature you leave everywhere, and it has the ability to attract today's customers much better than outdated sales and advertising tactics. Today's top brands think of packaging as a miniature billboard having the ability to attract shoppers right inside retail stores when they make their purchasing decisions.

By: Subhas Bhattacharjee

Former Managing Director, NERAMACL Ministry of DoNER, Government of India

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