4. Packaging Industry – India & China
Element Indian packaging Industry Chinese packaging Industry
Volume and Market volume of Indian packaging Industry is about The market volume of Chinese packaging Industry is
Growth Rate USD 14.8 Bn (INR 70k Cr). about USD 175.7 Bn (RMB 1.2 trillion).
The industry is expected to grow at a rate of 18-20% The industry is growing at a rate of 18% p.a.
from current 15%. China is world’s second largest packaging producer .
India stands at the 11th position in the world
packaging Industry.
Contribution to Indian economy is primarily service sector driven and Manufacturing sector contributes to about 50% of GDP in
economy Service sector contributes to 54% of GDP. China and Service sector’s share is 40%.
Manufacturing sector contributes to about 30% of Packaging Industry is China’s 14th largest industrial
GDP which is a key factor for growth of packaging sector and contributes about 2.5% of country’s GDP.
Industry.
Demand The highest demand for packaging and the China has demand for both bulk packaging i.e industrial
associated equipment come from the food processing packaging and consumer packaging (for processed food,
industry at 50 percent and from the pharmaceutical pharma etc).
industry at 25 percent .
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5. Packaging Industry – India & China
Element Indian packaging Industry Chinese packaging Industry
Regulatory Category based regulations are there for various The Chinese packaging sector is undergoing massive
Environment types of packaging – Pharma, packaged food etc. restructuring and reformation . Major regulations are
However, there are no specific standards for quality being framed around “Green packaging” , use of
management for the food packaging industry and recycled material, restriction of used of plastic bags etc.
there is lack of uniformity in standards.
Segments Flattened cans, printed sheets and components, There are about 11,000 packaging enterprises in China .
crown cork, lug caps, plastic film laminates, craft Advanced packaging (packaging of electronic
paper, paper board and packaging machinery are the components like chip sets, mobile phones, SIM etc) ,
key export elements for India. The fastest growing flexible packaging, corrugated packaging and packaging
packaging segments are laminates and flexible machines are some of the key segments in China.
packaging, especially PET and woven sacks
New Trends/ Increasing organized retail sector, processed food Increased focus on Green packaging technologies.
opportunities sector and growing pharma sector. Growth of FMCG Presence of bulk industrial units.
market in rural segments is also a major reason from China also enjoys a low cost of manufacturing for
growth in packaging industry. packaging production.
Due to lower manufacturing costs, India is fast
becoming a preferred hub for packaging production.
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7. Objective of research
• The objective of research is to carry out a
comparative study on Indian and Chinese
Packaging Industry and to detail out the
similarities between the two. To identify factors
contributing to growth, key challenges and
opportunities for packaging industry in both the
markets.
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8. Research Methodology
Understanding Industry global scenario. Classification based on functions, products, raw material etc.
Top Down Approach – Bottom up Approach –
Market Analysis based on industry reports and data Survey and discussions with various industry
available elements in both the countries.
Monitoring Industry Trend Survey with Industrial bodies
• Collecting related data from published industry reports
• Identifying areas of dependencies and similarities • Meeting Industrial bodies like FICCI, CII
• Studying growth areas and indentifying factors affecting growth. • Understanding of the views of regulators and
• Domestic and global demand and supply factors. industrial bodies on Chinese and Indian
• Studying annual reports and financials of companies. industries.
Comparative
Analysis of related industries and external factors Study – Data Survey with Manufacturers and
Finalization & suppliers
• Analysis of trends of related / customer industries – e.g. Pharma, Report writing
retail, food processing etc.
• Growth trends in customer industries • Meeting key manufacturers to understand
• Analysis of regulatory environment, import / export trends. ground level challenges, opportunities & threats
• Raw material availability and ease of production. • Use of questionnaire for obtaining inputs.
• Cost of production
Analysis and Consolidation
Data Standardization
• Consolidation and reconciliation
•Data Consolidation
• Data correlation
•Using statistical models to generate output /
• checking and validation.
conclusions.
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9. Packaging- Inputs and Outputs
Inputs for Packaging Output from Packaging
Glass Pharma
Industry Industry
Packaging Packaging
Industry Industry
Aluminum Paper Processed
Organised
Industry Industry Food
Retail
Sector
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10. Output and Recommendations
• At the end of research a report will be prepared
elaborating a detailed comparatives between Indian and
Chinese Packaging Industry. The following areas will be
covered –
• Growth Trends - Volume growth, export trends
• Opportunities - New Areas such as advanced packaging, emerging technologies, global
factors etc
• Key strengths - Cost of production, availability of resources, superior technology etc
• Key Challenges – technological, availability of raw material, labour and other factors,
market forces.
• Synergies between market – to explore areas of synergies between the two countries for
bigger growth.
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