To put it simply, potato chips and other kinds of packaged snacks are sold in plastic bags or wrappers, which are common examples of flexible packaging. While water and other beverages are sold in bottles, which are examples of rigid packaging.
The Indian F&B packaging industry is growing at the rate of 15 to 20 per cent per annum, and rigid packaging accounts for the bigger share of this growth (to the tune of over 80 per cent). Despite the positives that can be taken out of this, it would not be incorrect to state that some of the trends the industry is currently witnessing also border on challenges.
Challenges
The packaging of milk in India has always been a cause for concern (which includes, but isn't limited to, contamination). Reputed players in the dairy industry, such as Amul, have now switched to aseptic containers to maintain sterility
Some of India's popular dishes are making their way onto the shelves of retail stores in innovative packs as ready-to-eat (RTE) meals that simply need to be placed in hot water. These packs, created by aseptic processing, are called retort pouches
Although India is predominantly vegetarian, those who consume chicken, red meat and fish are aware that the chances of food poisoning due to inferior quality packaging material, and also that this is an area where innovation in packaging is the need of the hour
Packaged foods are a combination of components, with each having its own flavour and aroma. To avoid the transfer of aroma from one component to another, some food companies have introduced sachets or films that absorb the flavour or aroma. Muesli, the breakfast cereal which is rapidly gaining popularity among the health-conscious segment, is packaged in this fashion
In order to preserve the freshness of foods that need to be refrigerated (or those which are likely to be reused), refrigerators now have built-in digital technology
And then there are the inherent issues with which the Indian F&B packaging industry has been grappling for a very long time. It is upto the government and the industry to look within and come up with solutions that would enable the industry to compete at the international level.
Issues
Compared to other Asian countries like China and Thailand, whose products find favour in the global market, India continues to lag behind on account of its high taxes and restrictive import duty.
It is difficult to pinpoint whether India is struggling in qualitative or quantitative terms. In other words, there should be more indigenous players in the market and they should have the requisite know-how to produce packaging material of a better grade. These factors are proving to be major roadblocks in the growth of this sector.
Industryspeak
Sunil Jain, president, Rajoo Engineers Ltd, Delhi, shared some insights into the F&B packaging industry.
When asked about the most common packaging material and techniques used by the F&B industry, he said, "Various kinds of plastics, paper and aluminium foil are the predominant packaging material as far as food and beverages are concerned."
Explaining that the packaging material could be of the flexible or rigid variety, depending on the product, Jain said, "The packaging material may either be preformed into rigid or flexible containers, or in the form of reels for use on a vertical form fill seal (FFS) machine."
While the aforementioned challenges pertain to the packaging of specific kinds of foods, Jain enumerated three key challenges the Indian F&B packaging industry is facing, and assured stakeholders that steps are being taken by both F&B manufacturers and producers of packaging material to overcome the same.
Pricing
"Firstly, developing appropriate material composites based on the requirements of different kinds of food is a scientific task in itself. Not only does the manufacturer of packaging material have to make sure that it serves the purpose, but he also has to ensure that it is reasonably priced," he said.
Jain said, "The second challenge is actually a dilemma - how to counter all the criticism of plastics while using plastics, merely because it is the most economical, readily available and packaging-friendly material."
"And the third issue is to decide whether the edible item should be packed at the source itself, in order to reduce wastage and pilferage," he said.
Although Jain did not mention anything about the common food adulterants (despite being quizzed about it), he explained how food packaging could help prevent food adulteration.
"Packaging at the source can drastically reduce the scope for food adulteration. There is no bigger threat to the F&B industry than the duplicate and fake products that are flooding the market. Now there are technologies such as tamper-proof seals, one-time use packages, and holograms at our disposal to ensure that these malpractices are avoided, and they are being used," he said.
Labelling
Labelling plays a crucial role in food packaging, because it provides the consumer all the information he/she requires. "They influence the buyer's purchase decision," said Jain, adding that the concept of revealing all the information is still not as prevalent in India as it is in the West. "The infrastructure and mechanisms that are needed for the implementation of a law still have a long way to go," Jain said.
While on the topic of labels, the next logical question was about tall claims on labels, which the Indian F&B packaging industry has not been very effective in dealing with. "The infrastructure to deal with this issue is inadequate, hence offenders get away scot-free," he replied, adding that spreading consumer awareness is the need of the hour.
According to Jain, the food and beverage packaging industry in India is likely to witness a number of changes in the coming years. "These include 'farm-to-fork' concepts; packaging that will ensure that the product has a longer shelf life, and the emphasis on using material that is recyclable," he said.
Sushama Chittaldurg, chief executive officer, MG Tastebudds LLP, Mumbai, was also specific in her response to the query on packaging material used for F&B packaging.
"Laminated flexipack is one of the most used materials. Its constitution changes according to its usage, the required shelf life, barrier properties, etc.," she said, adding that the most common technology is FFS, which can either be with or without inert gas flushing.
"Our main focus should be to develop packaging material which is eco-friendly. The safety of the food in the pack is of paramount concern, as it will be consumed by human beings. Scientists and experts are currently working on developing packaging material that can be recycled," Chittaldurg said.
She did not speak about food adulterants, because they differ from one product to another. However, she said, "They are more prevalent in the unorganised sector. In fact, in this sector, there is an adulterant for almost every product."
"The food packaging industry can make a significant contribution by developing markers that could help detect the major adulterants," Chittaldurg said.
She said, "Labelling does play an important role in food packaging. It must be used judiciously, but it should not confuse the end-user. Tall claims on labels can be dealt with if the packaging industry and food business operators (FBOs) adhere to the code of conduct and the relevant legislations."
Emerging trends
Commenting on the new tends in the Indian F&B packaging industry, Chittaldurg said, "Now edible primary packaging material is being developed. The Indian packaging industry has the potential to be the frontrunner, and should grab the opportunity to do so."
Rahul Singhal, regional marketing manager, Saurabh Flexipack Pvt. Ltd, Pune, started with an explanation of the term food packaging.
"Food packaging is the science of making the material look attractive to the consumer, and at the same time, keeping the food fresh and easy to eat," he said.
The food packaging industry in India comprises almost one-fifth of the net revenue of the plastic industry with the use of PET; high-density polyethylene (HDPE); polyvinyl chloride (PVC); low-density polyethylene (LDPE); polypropylene (PP); biaxially-oriented polypropylene (BOPP), and polystyrene (PS) as the main components of common food packaging plastics.
"Manufacturers of foodstuffs rely on packaging their products for reasons that range from protection, freshness and containment to serving size, marketing considerations and compliance with government regulations," Singhal said.
Common materials
The most common packaging materials used by food manufacturers are plastic, aluminium and cardboard.
"Plastic is the preferred material for most frozen foods, fresh perishable food items, snack foods such chips and pretzels, and variety of bakery items. Aluminium is the material of choice for beverages such as juices, soft drinks and beer, canned perishable foods, and some baked foods. Cardboard packaging is used for both frozen and fresh perishable foods, and some dry goods such as cereals, mixes and rice," he said.
Singhal spoke at length about the challenges faced by the Indian F&B packaging industry. "The increased penetration of the organised retail sector in India, coupled with the increasing preferences for branded products, has greatly increased the demand for flexible packaging solutions, which has led to the demand for advanced technology in packaging machines."
"Indian machinery manufacturers like Saurabh Flexipack Systems Pvt. Ltd are taking steps to overcome these challenges. In fact, we are not lagging behind in the race, and have also geared up. Today, Indian companies are making machines that are lapped up by the growing industry in India," he said.
Export market
"Nowadays, packaging machines made in India are entering the export markets too. They have gone beyond the traditional markets (Asian neighbours and the Middle-Eastern countries), and have penetrated into the East European, South African and South American markets as well. This has opened new growth avenues," said Singhal.
He stated that food was essential for life, so it should be pure, nutritious and free from any type of adulteration for proper maintenance of human health. "Despite the improvement in production, processing and packaging, many poisons are entering our food chain," he said.
"For example, Indian spices (masalas) add taste and flavour to food and also aid in digestion. Some spices like turmeric have an antiseptic effect on the body. But what is most important is the quality of these ingredients. Every consumer wants to get the maximum quantity of a commodity for as low a price as possible. This attitude of the consumer, coupled with the intention of traders to increase the margin of profit, where the quality of the commodity gets reduced through addition of the base substance and/or removal of vital elements," said Singhal.
Adulteration
Food adulteration occurs in both rural and urban areas. So the first option is to buy branded products bearing an ISI mark. Even if these products cost a few rupees more, it is worth paying the extra amount to safeguard you health. If a person purchases any item and then has doubts about its quality, he/she must first approach the concerned company with the help of the details mentioned on its packaging. If a person manufactures for sale, stores, sells as an importer, or distributed any food article that is adulterated or misbranded, he is liable under the Food Safety and Standards Act, 2006, to be imprisoned and fined.
Before elaborating on the role of labelling in F&B packaging, Singhal explained labelling itself. "It is any written, electronic or graphic communication on the packaging or on a separate but associated label. It displays information about a product on its container, packaging or the product itself."
He said labels have three functions in packaging. "Firstly, it helps in identifying the principal place of business of the person by or for whom the product was. The second role labelling plays is that of an information provider; it describes the contents, the nutritional values, the cost, the product usage methods, the shelf life, etc. of the product. And lastly, it helps in promoting the product through attractive and bright graphics."
Singhal said, "It is difficult to ignore the screaming labels on store shelves. At times, there may be some unrelated or unsubstantiated claims which also mislead the consumers. Although the Food Safety and Standards Authority of India has set labelling and packaging regulations and food standards, manufacturers continue to exploit the grey areas."
"The laws in our country are excellent and technically sound, but there needs to be more clarity on the application of the laws. There should be educational programmes on radio, television and other media to familiarise the consumers with labelling terms," he suggested.
Future course
Speaking about the trends India's F&B packaging industry is likely to witness in the coming years, Singhal said, "The demand for packaging of various types continued to rise in India in 2010. This upswing in demand was given by the high growth in volume sales of the majority of consumer goods categories. The result of the launch of several new consumer goods in such catergories as snacks, dairy, etc., coupled with the increase in volume sales of packaged goods at the expense of unpackaged goods, helped the overall packaging volume to go up in the Indian market."
"Growth in more organised and modern retailing channels such as supermarkets and hypermarkets was the main driver of this shift towards packaged goods. As these modern retail outlets are better equipped to showcase packaged products compared to India's traditional retail outlets, the role of packaging in influencing purchasing decisions in-store is greatly increasing and this has made packaging an even more important marketing tool than ever before," he said.
Singhal concluded by saying that flexible packaging has wider applications. "They are being widely adopted across several different product categories, many of which are in the F&B sector. This is because flexible packaging material is lighter, easier to carry, more convenient to use and more cost-effective than rigid packaging material such as glass, metal and rigid plastics. With the use of packaged products trickling down from the metros to smaller cities, towns and villages, the use of sachets and other small flexible packaging material has seen very rapid growth as these tend to carry low unit prices and are affordable to India's rural masses."
