Quality Assurance In Packaging Industry

Packaging is the technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of designing, evaluating, and producing packages. Primary packaging is the main package that holds the food or the product that is being processed. Secondary packaging combines the primary packages into one box being made. Tertiary packaging combines all of the secondary packages into one pallet.

The global consumer packaging market is valued at approximately US$400b and an estimated US$500b if industrial end-markets are included. The Brazil, Russia, India and China (BRIC) markets comprise approximately 30% of global demand, increasing as their economies further develop. Packaging sales in the emerging markets are expected to continue to show strong growth as both increased consumption and demand for consumer goods drives the need for more sophisticated packaging, due to a growing middle class.

The growth of the global packaging industry is being driven by a number of trends, depending on various geographical regions. Growing urbanization, investment in housing and construction, the development of retail chains and the flourishing healthcare and cosmetics sectors are driving packaging demand in BRIC economies and other emerging economies such as Pakistan. An increase in living standards and personal disposable income in the developing regions fuels consumption across a broad range of products, with subsequent growth in demand for the packaging of these goods.

According to the global data, sales of packaging are concentrated in Asia, which accounted for 36% of the total in value terms in 2012. North America and Western Europe totaled shares of 23% and 22% respectively. In 2012, Eastern Europe was the fourth largest consumer of packaging with a global share of 6%, closely followed by South and Central America with 5%. The Middle East represents 3% of the global demand for packaging, while Africa and Australasia each have a 2% share. According to the stats, this segmentation of the market is expected to change significantly by 2018; Asia is predicted to represent over 40% of global demand, while North America and Western Europe lose out noticeably. 

Pakistan’s plastic & packaging industry has registered exceptional growth rate as high as 20% per annum due to RISING exports and increasing local consumption of packaged food have pushed up demand for packaging products that is attracting foreign investment in our country.

Local packaging industry meets only a part of the domestic demand and millions of dollars are spent every year on imports. So, there is much room for expanding this industry.

Industry sources say dozens of small factories operating in the informal sector across the country continue to produce tens of thousands of plastic crates and plastic sheets that are used for packaging agricultural products.

Presently there are 6,500 plastics, processing and packaging units in Pakistan. Major concentration of plastics processors whether they are injection, blow, extrusion, woven or tubular films manufacturers, is in and around the industrial hubs of Karachi, Lahore, Gujranwala, Peshawar, Faisalabad, Hyderabad , Rawalpindi, Gadoon and Hattar.

Currently Pakistan is the largest plastic and packaging market of South East Asia with a total production Capacity is 624,200 M/T per annum, second to India.

Packaging Industry is an economically significant sector for our GDP, as it caters to our growing FMCG’s and their products reach our 200 million population that accounts for 2.57% of the global count. 

FMCG’s are growing despite rising inflation and other barriers as urbanization is now 38.6%, compared to 19.5 % in the 1960’s.

Packaging remains attractive to private equity largely because it is viewed as lower risk and less cyclical than other sectors of the economy. Catering to the need of the domestic market, Pakistan has been satisfactory if not Perfect. 

The opportunity cost we incur is not concentrating on exports of packaging material up to the mark. In order to penetrate the global market, Pakistan must amp its technology and quality assurance to the importers. We should concentrate on new equipment and machinery followed by ISO Certification of companies indicating and promising quality of the product. If the capacity is fully developed with the correct government policies, we may become the leader in south East Asian region in terms of exporting packaging and plastic material as well as finished product.