When you think of India’s most significant economic sectors, segments like information technology, energy and finance may come to mind. But, while these are undoubtedly some of the top sectors today, one rapidly growing industry is quickly coming into the spotlight — the food packaging market.

The Packaging Industry Association of India (PIAI) pegs the sector’s annual growth rate at 24% to 27%. And Report Linker forecasts that the Indian food and beverage packaging market, valued at $26.28 billion in 2019, could reach $122.78 billion by 2025.  

Given this kind of rapid growth, businesses in this sector must prepare for massive changes in the road ahead. The first step is to understand why food packaging is essential.  

Five reasons food packaging is an integral part of the food and beverage industry 

Any business operating in the F&B market relies heavily on proper packaging to keep its operations afloat. When done right, food packaging can not only positively impact the food and beverage products themselves but can also help cut down global emissions levels. Here is an overview of the top reasons food packaging matters today.

• It prevents product contamination.  
• It improves the product’s shelf life. 
• It prevents tampering with the contents. 
• It draws in customers. 
• It offers end users vital information about the ingredients. 

Top challenges for food packaging companies in 2022 

Despite the undisputed importance of food packaging, the industry has challenges. If you are in the food and beverage packaging business, here are some key complications you need to be ready to tackle.  

• Upgrading to new and innovative technology that adds value to your business  
• Generating cash flows to meet the rising costs of food packaging raw materials  
• Plugging the gaps in vendor procurement  
• Making the switch to more eco-friendly packaging solutions 
• Meeting the sustainability goals expected from food packaging brands 

Navigating these challenges: Here’s how your business can gain a competitive edge.  

Given that the food packaging industry is thickly populated, you need the right strategy to remain ahead of the competition. Here are some actionable tips that can help. 

• Choose the right packaging materials for different foods and beverages   
• Ensure your food packaging is practical and user-friendly 
• Prioritize the usage of sustainable and biodegradable packaging 
• Make your packaging attractive without compromising on the information it offers 
• Encourage brand loyalty with comprehensive customer relationship management solutions  

Want to stay ahead of the curve? Choose the right packaging solutions provider today. 

To overcome the primary challenges in packaging and cement your brand’s presence in the industry, you need a reliable packaging solutions provider in your corner. Moglix can help you with comprehensive quality adherence, sustainability and vendor and inventory management solutions. Visit our website to learn more.  

An overview of the HoReCa industry 

India’s hotel, restaurant, and cafe industry (HoReCa for short) went through a brief but noticeable lull during the pandemic. But now, the industry has picked up the pace again and how! With new cafes and restaurants opened by the dozens in recent months, this is currently one of the fastest-growing market segments in the country. FnB news reports that India’s hotel and restaurant segment will likely reach $2.38 trillion by 2028.  

That said, the industry is not without its unique complications. Food packaging — a crucial aspect of this business — is one such area that can be pretty challenging. So let’s first take a closer look at the types of food packaging commonly used today and venture into the associated challenges  

The Role of Aggregators in HoReCa Packaging 

Businesses grappling with these challenges can look towards Packaging aggregators as a one-stop solution to overcome all possible roadblocks. Aggregators offer comprehensive services to streamline packaging and procurement for businesses in the HoReCa industry. Some such services include digitization of procurement, vendor consolidation, benchmarking, and measures to ensure uniformity in product and pricing. Online food delivery services are playing a pivotal role in reshaping this market. These players have a higher volumetric need for packaging consumables, which can be fulfilled by their channel partners or aggregators. This essentially eliminates the need to search for multiple suppliers on short notice. Moreover, aggregators can offer competitive pricing as they leverage the benefits of economies of scale. 

Types of packaging in the HoReCa segment 

Whether primary or secondary packaging, the following packaging supplies are typically used in the hotel industry today. 

• Metal packaging:  

Metal packaging includes metal tins like stainless steel or aluminum tins. These are popularly used for packaging canned food items and beverages. 

Sustainability level: High since metal is easy to recycle 

• Plastics: 

Lightweight, inexpensive and easy to mold, plastics are commonly used for packaging food in the HoReCa segment. Around 40% of all the plastic manufactured is touted to be used for the packaging alone.  

Sustainability level: Low, since most plastics, like single-use plastic, are not eco-friendly. 

• Glass packaging: 

Glass is also a preferred item on the list of Horeca supplies used for packaging. More specifically, it is used for various foods like soft drink cans, jams and pickles, juices and even baby food. 

Sustainability level: High since glass can be fully recycled.

• Paper packaging: 

Paper packaging is widely used in cafes and restaurants as a part of their takeaway services. It is typically used as a part of secondary packaging or tertiary packaging. 

Sustainability level: High as Moglix uses FSC certified raw materials.  

Packaging challenges in the HoReCa industry: And possible solutions 

Although each business in this market segment may have challenges, some issues are widely prevalent in the industry. Here are some such roadblocks and what businesses can do to overcome them. 

• Sustainability in packaging 

Not all kinds of packaging are environment friendly. And with the race to become carbon-neutral in the near future, hotels and restaurants are under tremendous pressure to adopt eco-friendly packaging policies. 

Solution:  

While making the switch may take a while, your business can start by introducing circular packaging. This packaging is easier to reuse and recycle, thus reducing the carbon footprint. 

• Supplier and vendor management 

Fragmented supply chains for packaging can be another roadblock for HoReCa businesses. This not only makes vendor management harder but also reduces margins significantly.  

Solution:  

To make your business’s packaging procurement more streamlined, you can implement standardized vendor contracts, track vendor management, and establish effective lines of communication with your vendors. 

• Rising costs of HoReCa supplies 

Another major challenge in this market segment is the issue of rising costs associated with the HoReCa supply chain. Reports show that packaging can account for around 10% of the total costs incurred. 

Solution:  

Cost analytics can help you identify the areas where you are overspending, so you can control your spending. However, cost-cutting is only a temporary solution. To enjoy reduced costs and improved margins over the long run, your business must focus on strategic procurement partners.  

Choose the right packaging solutions provider for an easy transition to sustainable packaging. 

Reduce your organization’s carbon footprint and meet your sustainability goals with Moglix. We offer innovative and competitive packaging solutions to help your business transition to sustainable packaging smoother and more effectively. Visit our website to know more.  

 

Over the past few years, the retail sector has witnessed a drastic transformation. At the forefront of this transition has been the exponential growth of the e-commerce sector fueled by consistently rising customer demand and e-commerce which has become an extremely important element of retail.  

Packaging as a Key Element of the E-commerce Sector  

It is no secret that the packaging of any product is an integral part of its marketing mix. Since the products offered through e-commerce lack the traditionally coveted element of tangibility, their packaging plays an ever more critical role in drawing customer attention and driving positive purchase behavior.  

Ask yourself: If you are looking to buy any product on an e-commerce website, would you choose an attractively packaged product or a poorly packaged one? Whilst aesthetics is not everything, they convey an organization’s attention to detail and its commitment to presenting that offering, thereby making packaging significant.  

What are the Packaging Challenges faced by the E-commerce Industry?  

With businesses constantly evolving and old approaches making way for innovative and sustainable alternatives, packaging in the e-commerce industry is also in a consistent mode of transformation. Whilst the cost of packaging remains a major element in the decision-making of an organization in the e-commerce and retail sector, there is now a major emphasis on the impact of packaging on the environment.  

Therefore, organizations are now looking for new packaging approaches that can encompass durability and cost-effectiveness whilst being eco-friendly. Here are the major challenges that organizations are facing in achieving this balance.  

1. Making packaging durable: Unlike a physical shopping experience, an online shopping experience presents some time lag between a product being purchased and delivered to the customer. Hence it is pivotal for the packaging to be sturdy. The durability of the packaging has a direct bearing on the lastingness and usability of the product it contains.  

2. Enhancing the unboxing experience: When a product is delivered to your doorstep, there is an inevitable sense of excitement to unbox it. Therefore, organizations are focusing on the design and structural aspects of the packaging without affecting the cost too much.  

3. Protecting the environment: Another key challenge faced by e-commerce organizations in their packaging-related decision-making is the use of eco-friendly materials. The use of single-use plastic has been banned in several countries and is discouraged in several others. The focus has, thus, shifted to biodegradable packaging materials.   

The most Optimum Solution for Sustainable Packaging  

If you are looking for a dedicated packaging development team to transform the way your organization approaches packaging, then look no further. Moglix is India’s largest packaging solutions provider with capabilities to serve peak demands pan India with an integrated Supply Chain and warehouse network. 

Moglix offered corrugated boxes to one of the leading ecommerce brand (Link to be added) iand has reduced their carbon footprint. Moglix offers an array of customized sustainable packaging solutions like paper bag products, Jute products, corrugated boxes, wooden crates.  

 Know more about our green packing solutions here!