Role Of Packaging In Fmcg Industry

1.2 PACKAGING IN FMCG INDUSTRY

Packaging mirrors the image and uniqueness to the consumer about a company while branding a product (Mishra and Jain, 2012). Today’s consumer never differentiates the consumer product from its package, where they look the package also as a part of that product (Ahmed et. al., 2005). Packaging plays a vital role of protecting the product inside and attracting the consumer outside. Packaging has a significant part in allowing products to respond to the demands and needs of modern consumers. Packaging is a vital opportunity to build new brands or reinforce and add value to a positive experience of an existing product or brand. It also plays an important role in creating a product brand and in communicating with

Packaging and advertising were virtually unknown. Today’s packaging is a massive, lucrative industry and often it is the way the packaging looks that persuades the shopper to buy the product inside it (Ryan, 2004). Worldwide packaging expenditures are accomplishing US$500 billion proving package as a worldwide demanding instrument due to innumerable facets.

Several market features and consumer styles theme to the augmented role of product packaging in the marketing mix (Underwood, 2003). Packaging, being the fifth ‘P’ of the marketing mix (Kotler et al., 1999) exhibits physical and psychological functions where it allows products to be protected, stored, transported and dispensed (Roper & Parker, 2006). Packaging is considered in the value creation process of any FMCG product. Packaging value is demonstrated by brand equity, market segmentation, product differentiation, pricing, new product introduction and promotion (Deliya and Parmer, 2012). Being one among the market principle comprising product, price, promotion and place, product packaging

The large growing middle class, liberalization and organized retail sector are the catalysts for growth in packaging (www.indiapackagingshow.com). By 2025, the Indian packaging industry will have an annual turnover of $ 32 billion from the current $ 24.6 billion. The overall turnover of packaging industry is about $ 550 billion in the world scenario where about $ 24.6 billion per annum is the Indian share. The annual growth rate of this sector is about 15 per cent per annum (Natchiappan 2014). Rise of Indian incomes will change the shape of country’s revenue pyramid where about 291 million people will be moving to a sustainable life from the phase of desperate poverty and the middle class population will further increase to 583 million from 50 million which is the current size (Mckinsey report 2007), which will further activate the packaging material consumption and thus, the packaging industry will breed extra. According to a report on packaging industry in India