Sustainable Packaging Trends for FY 2022-23
Sustainable Packaging Trends for FY 2022-23
The surge in deliveries, wastage of packaging, and a growing consciousness of the digitally savvy customer will force brands to consider sustainable packaging options carefully. Most studies indicate that consumers also evaluate brand packaging on their green footprint and low-touch point processes (the lesser, the better).
Here are the most important reasons why brands should strongly consider transforming their packaging usage:
- Be the ‘right’ brand – Customers prefer brands with more sustainable packaging than their competitors.
- Talent retention – By doing the ‘right thing,’ brands build the perception of being a responsible producer, which affects employees’ morale and loyalty.
- Reduction of carbon footprint and costs – extends to the financial and social responsibility aspect advantages, which are measurable.
- Investment opportunities – the world is veering towards investing responsibly, and larger AUMs focus on brands adhering to ESG norms.
- Key trends that are emerging in the sustainable packaging world and will shape the packaging industry. Sustainability has become the most important driver for intelligent packaging growth.
Brands are continuously working in improving their packaging to make it more eco friendly throughout the supply chain. Brands are switching to renewable energy and are practicing recycling.The real question is how do one keep their packaging both sustainable and distinctive?
Examples of Sustainable Packaging Alternatives
Here are some examples of alternative materials that could play a significant role in the packaging industry in the next few years:
- Bio-based Plastics – Bio-based plastics typically use food crops such as corn and sugarcane, both available in surplus in the country.
- Polylactic acid (PLA) – Transparent solid polymer that is similar to PETE polymer but has a significantly lower maximum continuous use temperature
- Poly hydroxyalkanoate (PHA) – is a much more eco-friendly polymer that can handle high temperatures and decompose in soil and waterways. Both alternatives are made from fermented corn sugar, and they can decompose up to 90% within 90 days if disposed properly.
- Paper-based packaging – Corrugated box and other forms of paper-based packaging are biodegradable if it does end up in landfill, can be easily recycled by end-users, and the raw material is carefully managed (basically planting more trees)
- Edible packaging – Natural polymers in food packaging, like Algae, seaweeds, polysaccharides, proteins, lipids, or composites.
As one of the world’s largest packaging supply chain platforms, our endeavor to digitize end-to-end procurement is what manufacturers need to capitalize on the massive influx of demand for better packaging solutions soon.Moglix is helping 700+ customers and 18000+ suppliers manage demand and supply worldwide
Moglix Packaging Supply Chain Solution Reduces The TAT by 20% for a Leading Interior Design Solutions Company
Moglix Packaging Supply Chain Solution Reduces The TAT by 20% for a Leading Interior Design Solutions Company
Moglix Packaging Supply Chain Solution Reduces The TAT by 20% for a Leading Interior Design Solutions CompanyRead More
The company brings complete packaging supply chain solutions all in one place
The company brings complete packaging supply chain solutions all in one place
Rahul Garg founded Moglix in 2015 to bring the ease, speed and convenience of E-commerce to the B2B world. This manufacturing sector company is a B2B E-Commerce startup providing services for procurement of industrial products such as MRO items and Packaging.
As a contract aggregator and supplier of packaging materials since 2019, the company has worked for brands such as Zomato, Swiggy, Lenskart.com, IRCTC, Comesum, Rebel Foods, and several others. In packaging supply chain procurement, its efficiency comes from its expertise in leveraging volume purchasing with the use of digitalization, vendor consolidation, product and pricing uniformity, benchmarking, and new product development.
The company offers primary, secondary and tertiary packaging made of all materials – paper, plastics and films, metal or glass. Packaging types and formats include food trays, pet bottles and jars, laminates, sachets, pouches, kraft sealable bags, lamitubes and many more.
Moglix’s onsite delivery of sustainable SKUs such as paper bags, compostable bags, molded trays, bagasse trays, cotton carry bags, and bespoke biodegradable packaging are provided to more than 25,000 pin codes. The company inventory management stretches across its 35 warehouses across the country. Food and beverages, E-commerce, ePharma, and logistics are the company’s main customers and its packaging materials fulfill more than 70% of the E-commerce industry’s packaging demands.
The company’s USP is in its ability to provide complete packaging and supply chain solutions in one place. The customer does not need to go to another platform to find the component. Customers are provided with access to a buyer’s portal where they can track their current order along with re-ordering.
The company’s business is scalable as Shobhit Goel, Senior vice-president of Packaging and CapEx at Moglix adds, “We operate as an entire ecosystem of packaging supplies right from raw material to the finished product. We have recently kicked off operations in the UAE and are planning to tap the global market.”
Packaging Compliance: A Global Perspective
Packaging Compliance: A Global Perspective
Of the developing countries involved at the UN COP26 Summit in Glasgow last year, India was way ahead in the ambition of its commitments. Led by PM Modi, India is committed to increasing the generation of non-fossil fuel-based energy to 500 GW, which will account for more than 50% of our energy requirements in 2030. We also agreed to cut carbon emissions by 1 billion tonnes. Accounting for a business as usual scenario, India’s carbon emission would be tallied above 4 billion tonnes without special efforts to reduce carbon emissions. Essentially, this means we will cut emissions by about 22% percent by 2030. India will also cut its carbon intensity by 45 % in the same period, which means we will allot renewable energy to a larger cross-section of industry and commerce sectors to reduce dependence on fossil fuels.
The targets are ambitious but achievable. The reason we say achievable lies in the definition of net-zero. Simply, net-zero by 2050 means that the world, our country included, will be able to offset carbon emissions to the environment by balancing them with carbon removed from the atmosphere. There are many ways to orchestrate this balance—packaging material, used by 99.99% of manufacturers in the country, adds to the waste management requirements and often ends up in landfills. We need to reimagine the role of packaging and how a switch to sustainable packaging as per MoEFCC policy can help us reduce the environmental strain and open new business opportunities.
What do the MoEFCC Guidelines Cover?
The new policies coming into effect over the last 18 months and through 2022 can pose a challenge for manufacturers. The Plastic Waste Management Amendment Rules, 2021, announced in August by the Union Ministry of Environment, Forest and Climate Change (MoEFCC), identified that 20 identified SUPs will be phased out by next year. These are generally classified as lowest utility and highest environmental impact. In India, 18 states have already implemented a complete SUP ban, but the upcoming July milestone will extend the legislation across the country.
- Plastic packaging material regulations were increased to 75 microns from 30th September 2021 and will subsequently shift to 120 microns thickness from 31st December 2022.
- Non-woven plastic carry bags shall not be less than 60 Gram Per Square Meter (GSM) from 30th September 2021.
- The manufacture, import, stocking, distribution, sale and use of the following single-use plastic, including polystyrene and expanded polystyrene, commodities will be prohibited from 1st July 2022.
- The policy regulations cover a variety of products, including – earbuds with plastic sticks, plastic sticks for balloons, plastic flags, candy sticks, ice-cream sticks, polystyrene Thermocol, packaging films around sweet boxes, invitation cards, and cigarette packets.
- The regulations do not apply to shall not apply to commodities made of compostable plastic.
Improving Packaging Safety Guidelines:
We are also witnessing stricter regulations regarding packaging material safety, especially for food products. The use of specific material for perishable or shelf food products does not allow recycled plastic or newspaper packaging. Policymakers have also mandated that it is the responsibility of the printers and producers of food packaging to ensure there is zero transfer of printing ink to the food product and that the packaging material does not have any reaction or potential for contamination in the storage and transport supply chain. Regulations like these necessitate a rethink on manufacturers to ensure they do not fall afoul of the laws. With a growing consumer awareness surrounding organic food and environmental footprint, brands must ensure that this transformation happens immediately.
For example, the government has banned using a solvent commonly found in printer ink called Toluene. Also called methylbenzene, a hazardous, clear, colorless liquid that turns into vapor when exposed to air at room temperature. Toluene has been linked to several acute and chronic health concerns, including eye and throat issues, breathing difficulties, and increased risk of developing allergies and asthma.
The Complex Reality of Global Packaging Compliance:
While India is taking progressive steps towards transforming the packaging industry into a sustainable, conscious, and safer ecosystem, developed markets like the USA and the European Union already have stricter standards and benchmarks.
The reason this complexity is essential to understand is simple. It is time for an Indian packaging manufacturer to look beyond India as a market. However, navigating the compliance terrain based on geographies can be complex. A digital, end-to-end, global packaging and supply chain solutions provider represents the ideal go-to consultant for help in navigating the complex layers of global packaging compliance.
Globally, brand owners have to also adhere to Extended Producer Responsibility (EPR) reporting legislation across the world. EPR makes brands responsible for declaring the packaging material on shelves and highlighting the end of the lifecycle process for the same material after consumption. The crux of the idea is to ensure that manufacturers are thinking beyond just the product’s sale to the consumer.
A quick tour around the globe of some of the largest producer economies helps us formulate the depth of the compliance complexity that a packaging manufacturer might encounter:
European Union
- They aim to effectively phase out single-use plastics in a bid to reduce marine contamination and pollution.
- Encouraged use of reusable containers through deposit return schemes (DRS). These schemes have gained much traction in countries like Sweden and Norway.
USA
- A total ban on the use, production and import of paper-based food packaging that contains PFAS. California has been exceptionally transparent about the findings linking PFAS to cancer, vaccine disruption and other severe environmental and bodily consequences.
- Misleading advertising on packaging will also be prohibited. There is a law to prevent the term ‘recyclable’ from being used on product packaging without verification to avoid misleading consumers who believe they are making ethical purchases.
Australia
- 100% of all packaging material should be reusable, recyclable or compostable by 2025.
- 70% of plastic-specific packaging should be recyclable or compostable by 2025.
- 50% of packaging components to be made from recycled material by 2025.
- Single-use plastic packaging will be obsolete by 2025
China
- China will ban all non-degradable plastic bags by 2025 in a 100% ban across all provinces.
- By the end of 2022, all major hotels and guesthouses should have stopped offering disposable plastic products, and by the end of 2025, smaller operations will be expected to have ceased as well.
The variance of compliance laws and their implications on customers of packaging material manufacturers in India is equally significant. One way for brand owners to avoid the risk of non-compliance is to go by the strictest design requirements for packaging that is sold worldwide. However, this may not always work. The more niche the need, the more challenging it becomes to maintain feasibility and efficiency to apply it to all packaging.
Suppliers also need to pay close attention to all the different requirements when deciding whether “worldwide” environmental labeling is a feasible and effective option for their specific case. Depending upon the types of products sold, the packaging materials used and the types of packaging components most frequently placed on the market, they can decide whether to create region-specific labeling and environmental claims or a worldwide labeling system.
Fuelling Global Packaging Ambitions
About five years ago, the Ministry of Commerce and Industry set up an independent committee to oversee and keep track of global compliance laws. The main reason to bring independent experts from organizations like the Indian Institute of Packaging, Export Development Authorities, industry associations and research institutes was to overcome the enormous rejection ratio of packaging material leaving Indian shores.
In 2018, the Indian packaging industry was the fifth largest globally. With the advent of the pandemic and the rapid shift to digital purchasing of standard requirements like grocery, the demand for packaging is bound to sky-rocket further. Yet, the Indian packaging industry only comprises about 4% of the world and is way behind markets like Brazil, China and the USA.
Clarity on global compliance laws, access to innovative packaging production technology, and material and capital to scale production are the prime growth areas Indian packaging manufacturers classify as the top priority. As global demand for sustainable packaging delivered at scale peaks in the next decade, Indian manufacturers can look at a two-fold growth from domestic and foreign markets.
Digitalizing the Packaging Supply Chain
For packaging manufacturers to take advantage of the latent demand in the market, a few upgrades are definitely required:
- Compliance laws and the constant monitoring of global trends to capitalize on future demand
- Better vendor management is the need of the hour as packaging manufacturers will have to look wider for more material options.
- Balance of volumes and pricing to take advantage of the optimum SKU RoI
- Design innovation to compete at the global level while staying price-conscious.
- Strict process and quality control implementation to ensure seamless delivery and a superior customer experience
These are core tenets of the Moglix approach to helping more than 700 customers and 16000 suppliers manage demand and supply worldwide. As one of the world’s largest packaging supply chain platforms, our endeavor to digitize end-to-end procurement is what manufacturers need to capitalize on the massive influx of demand for better packaging solutions soon.
Good Things Come In Sustainable Packaging
Good Things Come In Sustainable Packaging
In 2019, India produced 660 lakh tons of plastic waste. Nearly 43% of this, roughly 280 lakh tons, is packaging waste. Most of this is single-use plastic. Let that number sink in.
There has been a seismic shift in customer behavior, demand for goods, and a multitude of supply chain disruptions in the past two years. The COVID19 pandemic has changed the way we consider purchase decisions and accelerated a shift to digital buying for the large swathe of middle-class India. The Indian Institute of Packaging (IIP) estimates that the packaging consumption in India has increased by more than 200% – from 4.3 kg per person per annum to 8.6 kg pppa.
Paper is a more sustainable option than single-use plastic. Industry figures indicate that more than 49% of all paper produced in India is used for packaging. Given the global demand for craft paper in markets like China and the US leading procurement demand, India and other emerging economies are feeling the pricing pinch.
India’s COP26 Commitments and Compliance Framework for Sustainable Packaging
The Glasgow Climate Pact has clearly demarcated two important considerations. Net-zero emissions are the obvious first. However, the path to get there will be customized to ground realities. India finds itself at a critical reboot stage with regards to the transition map for governments, large enterprises, and MSMEs to hit the ground running with digital transformation.
The Cost of Climate Change Report spells out a dire implication of climate change. It is estimated that 3-10% of our GDP will be compromised by 2100 while increasing average poverty rates by 3%. If we are to achieve a target of becoming a $5 trillion economy by 2030, we will have to achieve a real GDP growth rate of 12.5% and create 90 million jobs in the non-farm sectors. Integral to the roadmap for achieving this vision is the substitution of existing high carbon content packaging materials, suppliers, and processes with more sustainable packaging materials, suppliers with such manufacturing capability, and demand aggregation in the end-to-end packaging supply chain.
The Plastic Waste Management Amendment Rules, 2021, announced in August by the Union Ministry of Environment, Forest and Climate Change (MoEFCC), identified that 20 identified SUPs will be phased out by next year. These are generally classified as lowest utility and highest environmental impact. In India, 18 states have already implemented a complete SUP ban, but the upcoming July milestone will extend the legislation across the country. The shift to more sustainable packaging material will be swift, and manufacturers need to display vision and plan to ensure they are not plagued by supply chain disruptions in the transition process.
The Search for Sustainable Packaging Material Substitutes Begins:
The government’s push for the compulsory use of plastics of a minimum of 75-micron thickness from December 2021 and a minimum of 120-micron plastics from July 2022 will generate demand for sustainable packaging and drive investments in these new products categories. The packaging product categories that are likely to increase demand are seaweed, organic fabrics, corn starch, wood, paperboard, recycled cardboard, and paper.
It is time for the Indian packaging ecosystem to move away from a siloed approach. Technology adoption is the need of the hour, not only for building better packaging material but also for the digital transformation of the packaging supply chain. Technology adoption in packaging materials can facilitate capacity expansion, bring economies of scale, and reduce unit costs. On the other hand, collaborative data sharing among the stakeholders in the supply chain can get greater visibility into demand and supply mapping across locations in India, pricing, and agile distribution.
The demand for single substrate packaging alternatives is set to soar. The cost and environmental benefits would be tremendous if we could bring that down to a single layer of substrate packaging. Consider an example of an FMCG manufacturer who currently uses three layered packaging materials: BOPT, LDPE, and a metal pack. Here are some examples of alternative materials that could play a significant role in the packaging industry in the next few years:
Bio-based Plastics – Bio-based plastics typically use food crops such as corn and sugarcane, both available in surplus in the country.
Polylactic acid (PLA) – Transparent solid polymer that is similar to PETE polymer but has a significantly lower maximum continuous use temperature
Poly hydroxyalkanoate (PHA) – is a much more eco-friendly polymer that can handle high temperatures and decompose in soil and waterways. Both alternatives are made from fermented corn sugar, and they can decompose up to 90% within 90 days if disposed of properly.
Paper-based packaging – Corrugated box and other forms of paper-based packaging are biodegradable if it does end up in landfill, can be easily recycled by end-users, and the raw material is carefully managed (basically planting more trees)
Edible packaging – Natural polymers in food packaging, like Algae, seaweeds, polysaccharides, proteins, lipids, or composites.
Bridging the Packaging Supply Chain Digital Divide
Plastics account for nearly a third of carbon emissions in core manufacturing verticals like metals, mining, and construction materials. Next in the pecking order of importance are energy, agriculture, allied activities, logistics, and HVAC, which represent the highest contributors. FMCG, consumer appliances, e-commerce, hospitality, and F&B also add their fair share of environmental footprint.
The answer to standardization of data sharing on carbon emissions compared to alternatives across a cross-section of manufacturers, MSME suppliers, logistics, and warehouse partners is undoubtedly a digital platform that can account for industry and process variations.
Unfortunately, digital integration in India’s supply chain is at less than 5%, obscuring visibility into carbon emissions at each stage of the supply chain. Due to the lack of this visibility, brands and manufacturers find it challenging to identify partners for on-demand sustainable transition who have the manufacturing capacity to scale with them.
Simply put, the easiest path to sustainability is through measurement. By analyzing data on carbon emissions and viable alternatives, all stakeholders can make responsible choices to bring transformative change quickly, at optimum costs, and without friction in the current packaging value chain.
How Can Brands Play a More Prominent Role?
Product packaging plays a prominent role in the purchase decision of the consumer. Primary packaging makes all the difference to the customer’s first impression and the brand recall later. Take the case of the food and beverage industry – chocolates, soft drinks, processed foods, packaged whole grains, and cereals, for instance, are packaged using laminates. The pandemic has changed consumer perception around packaging as well.
Brands need to put technology at the center of their transformation, create robust governance models to govern operations, and collaborate with a broader ecosystem to make a significant impact footprint. The surge in deliveries, wastage of packaging, and a growing consciousness of the digital consumer will force brands to consider sustainable packaging options carefully. Most studies indicate that consumers also evaluate brand packaging on their green footprint and low-touch point processes (the lesser, the better).
Here are the most important reasons why brands should strongly consider transforming their packaging usage:
- Be the ‘right’ brand – Consumers prefer brands with more sustainable packaging than their competitors.
- Talent retention – By doing the ‘right thing,’ brands build the perception of being a responsible producer, which affects employees’ morale and loyalty.
- Reduction of carbon footprint and costs – extends to the financial and social responsibility aspect advantages, which are measurable.
- Investment opportunities – the world is veering towards investing responsibly, and larger AUMs focus on brands adhering to ESG norms.
While this builds a strong brand image, the path to packaging material and supply chain transformation is complicated and needs an end-to-end advisor who can envision upstream and downstream requirements, mitigate risks and provide solutions platforms that enable seamless migration. At Moglix, we work with more than 700 manufacturers, 16000 suppliers, 40 logistics partners, and 30 warehouses into a single ecosystem for 6000 packaging SKUs spread across 45 categories to create an unmatched collaboration ecosystem for all stakeholders.
What will Drive Sustainability in Packaging?
Like us, all stakeholders in the packaging supply chain ecosystem are acutely aware of the implications of a collective failure to adopt more sustainable best practices. By reducing the compliance costs with the amendments to the Plastic Waste Management Rules, 2021, we enable large enterprises to hit the ground running with agility.
Industry leaders should aspire to create a brand of impact by revamping and reimagining product packaging and supply chain processes with technology at the core. A seamless transition, however, requires much planning. The brand perception, economic and environmental costs are too significant for companies to take lightly.
The pandemic, coupled with the COP26 commitments for a greener future and government legislation to eliminate single-use plastic, should be viewed as a golden opportunity to hit the reset button. By placing digital technology solutions, material innovation, and process optimization at the core for a better tomorrow, the government, corporations, and the supplier ecosystem can usher in a new age of conscious commerce. That is why it is time to say that good thing come in sustainable packages.
Moglix Sustainable Packaging Supply Chain Solutions
We are Moglix; India’s largest packaging solutions provider. From reducing costs, enhancing branding, and meeting sustainability goals, we enable enterprises to reimagine their packaging supply chain by integrating economic and technical efficiencies in one metric: sustainability. To learn how you can leverage Moglix sustainable packaging solutions, please reach out to us at info@moglixbusiness.com
The Complete Package – How Grocers Will Keep Pace with Online Consumer Shift
The Complete Package – How Grocers Will Keep Pace with Online Consumer Shift
The Indian online grocery delivery sector competition has ramped up massively over the last three months. Since e-commerce grocery retailers have upped their commitments to customers on the delivery time, a tidal wave change is underway in the online grocery shopping experience. It can put a lot of demand on the speed and sustainability of product packaging. Post pandemic, there has been a sizable shift in the audience ordering grocery online, with some reports indicating a change in more than 25% from offline to online. The number is only set to grow further.
The Indian online grocery market will grow at a CAGR of 36% to reach approximately $38 billion by 2028. While safety and food quality should always take precedence, secondary packaging options can address most of the delivery needs of grocers. In response, packaging may demand a sizable upfront investment to Grocers, but over time, it will encourage customers to make repeat purchases and gradually shape consumer loyalty.
Here is what will drive the packaging ecosystem for Grocers, aggregators, and consumers:
Aggregators role for grocers: As more consumers shift to online grocery shopping, grocers will have to cater to bulk packaging supplies across categories. Packaging aggregators will play a crucial role by providing a convenient one-stop-shop solution for all types of packaging required by grocers. Furthermore, the balanced offering of quality packaging products/materials at an optimized cost with exceptional customer service will become essential.
At Moglix, we have strong pillars to deliver on our customers’ commitment to ensuring millions of Indians have access to fresh goods when desired. Firstly, a dedicated NPD team works closely with customers to simplify packaging demands and bring down complexity across various food categories. This helps save development time and material costs and enables a more sustainable footprint for each ecosystem link.
Aggregators need to also position themselves as the source of innovation and capitalize on new trends in packaging. A few examples of these trends are:
- Replacing bubble wrap with packing peanuts made out of corn or honeycomb structure
- Use of high strength to weight ratio fabric with minimum weight to insulate material in saddlebags
- Engineered corrugated cases as per the supply chain requirement
Trends and Advancements in Grocery Packaging: What’s New?
Extending the Shelf-Life of Edibles
Trends and advancements regarding perishable food items are also critical – e.g., There is a rising acceptance that the salt used for preserving meat items needs to be avoided for health issues and replaced with natural ingredients. Instead, lactate solutions have a bacteriostatic effect on meat and extend shelf life by 50-100%.
Sustainability and Compliance
Grocers have been using food-grade polymers, but there is a widespread shift towards sustainability with time. Materials have to be compliant with government regulatory norms, like the minimum microns rating will be increased from 50 to 125 from July 2022.
Material Use
From a material point of view, grocers need to familiarize themselves with PCR grade packaging material (PCR PET & PCR PE) for poly bags compostable polymer grades like PLA and starch-based films.
Last-Mile Delivery and Distribution
As the penetration of delivery services increases, grocers can take advantage of integrated aggregators like Moglix, which offers an unprecedented distribution footprint (35k pin codes), a unified supplier base that brings tremendous savings due to economies of scale.
Technology Integration in the Supply Chain
Technology or platform-oriented aggregators offer higher visibility and control on inventory, reduce wastage through Just In Time delivery, and improve customer service benchmarks. This allows grocers to integrate technology suppliers, category expertise, logistics, and warehousing in a single supply chain ecosystem.
With their packaging needs well taken care of, grocers can focus on reducing inventory wastage and engage with their customers for a more significant business impact.
The Current Packaging Industry Scenario
The Current Packaging Industry Scenario
Given the global macroeconomic outlook, the packaging industry can be cautiously optimistic about a rebound. We see 8 to 10% growth in India in the intermediate term. India’s growth rebound will follow global trajectories. However, local factors like the offline to online shift will have a profound impact on the economic rebound and thus on the growth in the packaging industry. E-commerce enablement in India is now higher than ever before. It will have a spillover effect on growth in the packaging industry.
There are several constraints on the global packaging supply chain. One of the major factors is the evolving role of China as a net importer of kraft paper due to a surge in demand for both its domestic and global trade requirements. Polymer pricing has been volatile both globally and domestically. With greater adoption of sustainable packaging, paper prices have inflated over the last two years. This has also been the case in the Indian packaging industry. Furthermore, polymer manufacturing in India has a highly imperfectly competitive market morphology. Market share and production capacities are dominated by a quantity leader. It has repercussions on the pricing of packaging material procurement. Government intervention in the form of price ceiling can enable the pass-through of cost cushion from MSME suppliers to enterprise buyers and end customers.
There are two significant avenues for the Indian packaging industry to adopt technology. First is the manufacturing of packaging materials. Second is the digital transformation of the packaging supply chain. Technology adoption in the manufacturing of packaging materials can facilitate capacity expansion, bring economies of scale, and reduce unit costs. On the other hand, collaborative data sharing among the stakeholders in the supply chain can get greater visibility into demand and supply mapping across locations in India, pricing, and agile distribution. Stakeholders in the packaging industry can benefit by moving away from a siloed approach towards a digitally connected supply chain ecosystem. It will make the packaging supply chain more demand-driven and efficient.
Moglix is set to transform the Packaging Industry in India
Moglix is set to transform the Packaging Industry in India
Rahul Garg, CEO & Founder, Moglix says ‘We are set to transform packaging industry in India’ and talks about how Moglix has become India’s largest cost-effective packaging solutions provider. Moglix is enabling brands to adopt end-to-end sustainable packaging solutions. We are partnering with brands to help them identify and transition so they can achieve packaging sustainability compliance ahead of the phased SUP ban to be effective from 2022.
Our packaging vertical is meeting the packaging needs for more than 70% of e-commerce orders in the country. We are giving source-to-site packaging supply chain solutions to large manufacturers across industries to resolve their challenges of limited shelf life of perishables, pilferage, spoilage, and wear and tear during transit journeys for domestic and global trade. Moglix is also focusing on Food & Beverages, Textiles, Cosmetics and Personal Care, Pharmaceuticals and Healthcare, Automotive Packaging solutions.
“As a brand, the packaging for your product is a manifestation of all the effort gone into your product. As a user, the moment you see the packaging, you are assured of the safety and quality of the product. That is why packaging holds a special place for businesses.”
Rahul, says
Moglix is a one-stop solutions provider for packaging needs. Our products go through 3 levels of quality check and comply with government regulations. We are reducing the costs of compliance with the amendments to the Plastic Waste Management Rules, 2021 that will come into effect from July 01, 2022, and enabling large enterprises to hit the ground running with agility. Through our supplier capability mapping process, we are continuously expanding our pan-India packaging supplier base, thereby reducing the costs of supplier search and product development for sustainable packaging solutions.
Wrap Up: The Evolution of Packaging Materials and Designs
Wrap Up: The Evolution of Packaging Materials and Designs
Packaging, the technology, and the art of preparing the artifact for convenient transport, storage, and sale, has an exciting journey along with the beginning of humankind. Close observation reveals that the development of packaging materials and packaging designs evolved around the culture, global epidemic, and consumer behavior widespread around a given period. Let us look at how packaging has evolved.
Ancient & Medieval era (up to-20th century)
People produced and consumed most of the food locally during ancient times, so the food packaging was unessential. Ancient civilizations used vessels and containers made of natural materials like lotus leaves, shells, bamboo, palm leaves, gourds, coconut shells, and animal skin. Later on, there were discoveries of ores, minerals, and chemicals, leading to new packaging materials.
The Era of Dual-Use Packaging – Packaging for only high-value goods like jewelry, gift items, shoes, and premium foods. As the packaging materials were indispensable, people structurally designed these to serve dual functions after product use.
Building Brand Identity (1890-1910) –With rising trade, the phrase-” let the buyer beware” became popular. Hence, manufacturers turned to use packaging in innovative ways to establish their brand identity.
The Era of “Silent Salesman” (1920-40) –The rise of low-cost and clean packaging solutions allowed huge retail chains to come in who displayed products on the shelf.
Convenience as the Motivation (1950-70) –After the second world war, the consumer market exploded with the continuous innovations in aluminum and plastics. Hence modern-looking packaging materials were available at lower prices compared to traditional materials.
The Rise of Digital (1980-2000) – This era saw the rise in computing abilities and the evolution of printing technologies. As a result, execution and rapid scaling of business became possible. The growing fascination with plastics led to innovation in packaging designs, shapes, and materials that paved the way for use-and-throw behavior. Hence the non-decomposable packaging waste became the primary constituent of landfills.
Current Packaging Trends (21st century)
Environmentally Friendly Packaging (The Early 2000s)– The Environmental Protection Agency created stringent laws for businesses to reduce environmental impacts. Finding sustainable materials for environmentally friendly packaging and optimizing waste became a prime agenda. The industry started moving towards the circular economy from the linear economy.
2007-2021– A faster pace of life translated into consumption “on the go,” which, naturally, increased the need for packaging material for food. Let us look back at some of the best trends we have seen happening so far! Digital Printing – Digital printing enabled more options in personalization and customization when compared to other techniques. Examples of such personalization include Coca-Cola printing of customers’ names on the soft drinks containers.
We cannot talk about 2020 without talking about clean labels. Providing product information in a clear, concise, and transparent way augmented customers’ trust in the company’s brand name.
Coronavirus and Food Packaging- The COVID19 outbreak forced the surge of new developments. How long does the covid virus last on cardboard boxes? Does freezing kill coronavirus on food packaging? These questions aroused the greater interest of food brands and customers alike. Many food delivery brands experienced a rise in demand for new packaging ideas for food like disposable plastic packaging for food. The packaging industry focused on innovating packaging material for food to help food brands to meet these demands.
Touchless packaging – The pandemic has also accelerated the development of touchless packaging and operations like the design of touchless dispensers, touchless manufacturing & packaging of pharmaceutical instruments, personal protective equipment (PPE).
The Future of Packaging
The global packaging market is expanding with a 2.8% CAGR to reach US$1.05 trillion by 2024. Let us have a look at certain advancements which seem to dominate the future packaging market.
Optimized packaging solutions (Space and material saving) – Designing optimized packaging which occupies less space with thinner & stronger design, as storing and transporting mass amounts of packaging is also seen as less eco-friendly.
Smart packaging – Rise in the internet of things, RFID, biosensors, screens, compact power sources, and data storage will enable companies to receive comprehensive information on consumers and valuable data on buyer groups.
RFID tags relay information on the real-time location of product packages up to a distance of 100 meters and enable accurate product tracking. With blockchain, supply chain companies can document production updates to a single shared ledger for complete data visibility. Transactions are time-stamped and therefore businesses will be able to track a product at any time.
Edible packing – Use of natural polymers in food packaging, which are biodegradable, do not generate residue, have a low environmental impact, and are consumed by humans. Materials in use include polysaccharides, proteins, lipids, or composites.
Water Soluble packaging –Such packaging materials will dissolve in hot water. The main ingredients in this bio-based material are polyvinyl alcohol or PVOH, a synthetic polymer created without the heavy toxic metals to act as an alternative to plastic packaging like shopping bag retail packaging.
Self-cooling and Self-heating packaging – The package will self-heat and cool without an external heat source or power. It will be suited for military operations & natural disasters. The science behind this is an exothermic chemical reaction between anhydrous calcium chloride and water.
Active packaging / Antimicrobial packaging – With a CAGR of 6.62%, this market may reach a size of US $31.924 billion in 2026 from the US $20.386 billion in 2019. It will involve the addition or withdrawal of certain gases and liquids within food packages, which will inhibit the growth of pathogenic microorganisms and prolong the shelf life of food.
E-commerce Packaging – The e-commerce shopping experience will become more and more tailored to the customer allowing brands to accommodate their target market even further through packaging. Coming out of the pandemic, there is likely to be a surge in demand for sustainable packaging solutions. In fact, 82% of customers will likely prefer to receive their online order in cardboard boxes over poly bags.
Corrugated Packaging – To achieve sustainable goals, there will be a steep increase in applications for corrugated packaging materials. It will add up to a big win for corrugated box packaging. (30)
3D Printing – 3D printing will allow the packaging industry to manufacture for a much lower price by integrating manufacturing, warehousing, overseas shipping costs, and CO2 emission reductions. (27)
Wrap Up: Rise of Digitally Integrated Packaging Supply ChainsComing out of the COVID19 pandemic, technology integration in packaging will embrace new standards like digitally printed and serialized bar codes, variable data printing, and IoT. Higher technology integration will allow businesses and customers alike to have greater visibility and control on not only their product packaging but also performance metrics like product shelf life, wastage, costs, carbon footprint, and turnaround time across the end-to-end supply chain.
Moglix-Packaging-Solutions-for-Leading-Logistics-Company
Moglix-Packaging-Solutions-for-Leading-Logistics-Company
Moglix Consolidates Packaging Procurement for a Leading Logistics CompanyRead More
