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.
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4 Essential Packaging Supply Chain Solutions for Manufacturers Ahead of Diwali in 2020
4 Essential Packaging Supply Chain Solutions for Manufacturers Ahead of Diwali in 2020
Exactly how robust are your packaging supply chain solutions? If you are a manufacturer, you understand that Diwali 2020 is going to put your packaging supply chain solutions to the ultimate test.
On the one hand, health and supply chain risks due to the COVID19 pandemic loom large. Sourcing the right packaging SKUs, optimising quality and cost, warehousing, and reducing last-mile friction are four major challenges this year. On the other hand, Diwali 2020 is the beginning of yet another busy festive season in India.
You and your team of supply chain managers need to map the pain points and make contingency plans. You also need to optimize your packaging supply chain management systems and be prepared to create great customer experiences. Here, we share a compact list of four essential packaging supply chain solutions that will help you prepare. Let’s explore.
Challenge 1: Sourcing the Right Packaging SKUs
Share the types of packaging solutions that you require with your packaging suppliers. Communicate your custom packaging solution specifications and ask for relevant samples and new product development capabilities.
Share the details of your brand persona and an outline of who your customers are. What are your unique supply chain challenges? Does your packaging resonate with your brand’s value proposition?
If you operate at the point of origin of the supply chain, prioritize the primary packaging SKUs that will contain the contents of your product. If you are a distributor, you need to focus on secondary packaging. If you have a country-wide distribution network, map the last-mile challenges and ask for relevant tertiary packaging solutions.
Pro-Tip: Look for an integrated packaging supply chain solutions provider that has a large network of local packaging suppliers across the country. Yoru supply chain managers will get a single point-of-contact and can get turnkey packaging solutions on-demand. Further, you will save big on procurement costs and supplier collaboration efforts.
Challenge 2: Quality and Cost Optimization
Create a list of quality specifications for your packaging SKUs. Map the overall order size and procurement costs. Share your packaging quality and cost requirements with your supplier. Furthermore, seek new ideas to save costs on your packaging from your suppliers.
While optimizing costs, also look at how your total packaging costs impact the unit economics and pricing of your products. Explore ergonomic packaging designs and products that allow you to accommodate more volumes per packaging unit.
Furthermore, give due consideration to the weight of the packaging materials and its direct bearing on the cost, insurance, and freight (CIF) of your supply chain. For instance, corrugated cardboard boxes, paper bags and paper boxes are lightweight and allow supply chain and logistics personnel to add more cargo per packaging unit. Doing so makes the shipping process more cost-effective.
If your enterprise is bound by environmental compliance regulations, ask your packaging suppliers to demonstrate their sustainable packaging offerings along with the corresponding impact on the carbon footprint.
Pro-Tip: Conduct a packaging audit at your plant locations periodically. A packaging audit entails a thorough diagnosis of your packaging supply chain and spend-analysis. You can derive intuitive insights from your data analytics to optimise the quality, costs, and risks in your packaging supply chain. A packaging audit is especially recommended to maintain smooth business continuity throughout the year and peak load seasons like Diwali.
Challenge 3: Warehousing and Inventory Stock-Out
The shortage of warehousing space and inventory stock-out are two pertinent challenges during the festive season. Map your warehouse capacity in advance and ask your supply chain managers to share data on the packaging consumption rates during the peak season. Engage with your packaging suppliers. Seek the details of the expected time of arrival (ETA), lead time and order processing time that they need to deliver any unplanned packaging orders in the face of an inventory stock-out.
Furthermore, opt for local sourcing options this year to steer clear of the risks of supply chain disruptions. Prioritize the location of your packaging solutions suppliers and their access to multimodal transport. Search for a packaging vendor with integrated logistics and supply chain management capabilities across India.
Pro-Tip: Choose an integrated supply chain solutions provider as your packaging partner with a large network of logistics partners and warehouses. If you are a multi-plant manufacturer opt for a captive supplier. A captive supplier is one that will hold your packaging inventories on their account books at your site location. Partnering with a captive supplier will ensure you JIT delivery of all types of packaging units at your site on demand.
Challenge 4: Last-Mile Friction
While last-mile delivery has always been a challenge in the B2B supply chain, this year’s COVID19 pandemic only compounds its magnitude. With social distancing norms in place and customers demanding access to products from the comfort of their homes, you need to reimagine the last-mile of your supply chain journey.
This is especially true for consumer goods, pharmaceuticals, e-commerce, food & beverages, and chemicals because of the limitations of shelf-life and expiration date. Gaining visibility into the last-mile journey is the key to ensuring that your products reach customers fresh, compact, and safe. Opt for cost-effective and smart packaging solutions like RFID tagging. Use digital packaging systems to ramp up your tertiary packaging, track the movement of your products, and reimagine the customer experience.
Pro-Tip: Leverage smart packaging technology to zero down the gaps with your customers. You can map end-user trends, consumption patterns, and purchase volumes. You can also adopt reusable and recyclable packaging by integrating technology with your packaging.
For instance, you can insert a sensor in standard wooden packaging boxes and track their reverse logistics, recycling, and reuse. Doing so, you can reduce both your carbon footprint and packaging costs.
Prepare for the New Normal and New Possibilities in Packaging Supply Chain This Diwali
This year’s Diwali will be different from yesteryears. Prepare your supply chain for the new normal. Ramp up your packaging supply chain in advance and be open to new possibilities during the festive and holiday seasons. Browse Moglix Packaging Solutions and connect with our experts to learn more.
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3 Reasons Why Every Multiplant Manufacturing Business Needs a Packaging Audit
3 Reasons Why Every Multiplant Manufacturing Business Needs a Packaging Audit
If you are a manufacturer, your packaging supply chain manager is likely to list three significant packaging challenges.
- How do I reduce packaging costs?
- How do I identify and reduce the in-transit losses of my goods?
- How do I put my enterprise on track for continuous improvement?
If you face any or all of the above challenges, you are looking for a robust and periodic packaging audit program with the following benefits for your enterprise.
Explore the Cost Advantage of a Lean Supply Chain for Packaging
Optimizing the packaging inventory is a significant challenge. Holding high inventories of packaging SKUs can block your enterprise’s working capital. On the other hand, an inventory stock-out can directly affect your distribution and reduce revenue through lost sales. A packaging audit can enable you to rightsize your packaging inventory, unlock working capital, and reduce indirect costs. You can also explore EOQ levels of inventory by using artificial intelligence-enabled analytics and migrate towards a lean supply chain.
Reduce Wastage and Losses in Transit During the Supply Chain Journey
Pilferage, wear and tear, and spoilage during transit can lead to formidable losses to your enterprise. One way to reduce such wastage and losses is to re-engineer packaging as per the logistics lens. A packaging audit can enable you to map the logistical challenges across multiple modes of transportation and choose packaging solutions that provide the best fit for each stage of your supply chain journey.
Continuously Improve Through Total Quality Management in Packaging
The COVID19 pandemic has ushered in a new normal. How do you explore new avenues to stay competitive? Class C spend items like packaging cater to less than 10% of the unit costs of end products but are likely to affect more than 10X of the value of your goods if you get it wrong. A packaging audit can help you to discover the most significant opportunities to enable continuous improvement and total quality management in packaging.
Are you exploring a Packaging Audit for your Manufacturing Plant(s)? Testing and diagnosis are integral to both human and enterprise health. With a packaging audit across your plant locations, you can detect challenges early and adopt remedial measures with agility to reimagine your packaging.
If you feel that your packaging could be improved but don’t know where to start, please get in touch with us here. You can also learn more about our packaging solutions by clicking here.
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