Challenges Faced by Packaging Company In India
Increasing consumer shopping through e-retail and e-commerce has played an important role in the rising demand for packaging companies in India. Manufacturing sectors such as pharmaceuticals or FMCG sectors such as packaged food and beverages, functional food, and hygienic products have observed considerable growth, raising the demand for packaging in India. The need for suitable, sustainable disposable takeaway packaging for food delivery has also been a contributing factor for the growth of packaging company in India. India’s packaging industry is set to rise with a CAGR of 26.7 percent during 2021–2026 to USD 204.81 billion by 2025. Factors like changing lifestyle, internet penetration, and the rising population has increased the demand for high-quality, safe, and hygienic packaging.
Major Challenges Faced by the Packaging Companies
· Keeping up with the Rapid Change in Technology
Packaged products need to constantly innovate their packaging to keep up with the changing consumer demands and to bring about product differentiation in the market. Innovative packaging enables companies to improve their packaging using the size, shape, colour, and functionality of the packaging. The problem packaging companies in India are facing is to keep pace with rapidly evolving changes in packaging technology. Companies need to invest in new machinery, technology, and infrastructure to create innovative packaging designs which require huge capital investments. Investing in technology is crucial for companies to meet consumers’ demands and to stay ahead of the competition.
· Rising Cost of Raw Materials
Plastic, resins, paper, paperboard, films, and adhesives are some of the common raw materials used by packaging companies. In recent times, the packaging industry has been hit by increasing prices of such raw materials. This has severely impacted the price for printing inks, coatings, and laminating adhesives used in various packaging and printing applications. Such an increase in raw material prices has affected the packaging company’s ability to remain competitive. Due to the Covid pandemic, most developed countries are either burning wastepaper or using it for landfills to avoid coronavirus spread. This has resulted in a huge shortage of raw materials for Indian paper mills.
· Sustainability Challenges
The packaging industry generates a lot of waste which has been a growing concern for consumers, government organizations, and environmental groups. After the contents of the package have been consumed, the outer packaging ends up in huge landfills and the ocean. Most of these materials are non-recyclable or difficult to recycle such as plastic wrappers, aluminum cans, and polyethylene. To improve packaging sustainability, packaging companies in India need to incorporate designs that will consider environmental issues, end-of-life disposal, and reduction of greenhouse emissions. Companies need to be aware of waste management and must take appropriate steps to minimize, dispose of, recycle the waste generated due to the packaging of products. Sustainability in packaging is even more important as we are continuing to overburden our existing natural resources.
· Protecting Pack Contents from the External Environment
Packaging companies have to ensure that their packaging survives harsh environmental conditions like rain, sunlight, UV rays, fluctuating temperature, humidity, and moisture. The packaging used also needs to protect the products while being stored in warehouses or in transit to the final destination. So, it is challenging for a packaging company in India to create packaging that can withstand the above-mentioned conditions.
Packaging challenges come in many forms and it will be not be easy for a packaging company in India to overcome the same. While challenges for the packaging industry such as cost, technology, regulations, and volatile economic conditions persist, the Indian packaging industry is witnessing steep growth and is one of the strongest growing segments.
