packaging for food

Packaging Trends in Organized Food Retail By Veena Mathur Reliance Industries Limited Agenda Organized Food Retail Chain Key Growth Drivers Importance of Packaging Packaging Trends in Food Retail 2 Organized Food Retail Chain Farm Collection in Crates/ Bulk bins Transportation Retail Outlet Packing Station Farm to Consumers in hygienic packs 3 Key Growth Drivers Change in India’s Socio - Economic Structure Growing Economy Consumption Boom Rising Income levels Rise in Working Population Increasing Nuclear Families Changing Food Behaviour Profusion of Brands 4 India … TODAY One of fastest growing world economies Reasonably proactive Opening up of sectors for investment YESTERDAY Slow rate of growth Bureaucratic Protected and slow Small consumer markets Underdeveloped infrastructure Promising consumer markets Significant investment in infrastructure creation for industry …..is setting the pace for growth and stability 5 Growing Economy 2nd fastest growing economy. 4th largest Economy (PPP) – 3.3 Trillion US$ Accounting for ~20% of Asian and ~10% of Global growth in last two years. (IMF: World Economic Outlook 2005) Drawing Global attention as outsourcing destination and attracting large financial inflows. Only India among BRICs to have Sustainable growth at > 5% till 2050. (‘Dreaming with BRICs: The Path to 2050’ Goldman Sachs Report) India to be a developed nation before 2020 6 Accelerating GDP Growth Years to double per capita GDP No. of times increase in income in life time 2 5 1982-92 1992-2002 * ** 2002-12 GDP – 7% 2002-12 GDP – 9% 23 18 14 10 Reduced to 1/5 times 1972-82 57 Increase by 16 times 8 16 32 * Most Probable Scenario ** Optimistic Scenario Source : GOI … excellent growth prospects 7 Consumption boom Rising Income Levels 1995-96 The Very Rich The Consuming Class The Climbers The Aspirants 1.2 32.5 2001-02 2.6 46 74.4 2006-07 (P) 5.2 76 82 20 54.1 44 33 33 24 The Destitute Addition of 100 Mn to consuming class during 1996-2002 16 Reduction in Aspirants and destitutes by about 225 Mn in 10 years Half a bln very rich & Consuming class by 2007 Source : NCAER 8 All figures in Million Households Rise in Working Population 74 72 70 68 66 64 62 60 58 56 54 2000 2005 2010 2015 2020 2025 2030 9 % of working population (15-60 years) India Russia Brazil G6 China Strong Demographic Advantage over Next 25 Years Increasing Nuclear Families Transformation from Joint to Nuclear Family 76.42% 80.00% 60.00% 40.00% 20.00% 0.00% Nuclear Family Joint Family 23.58% 2005-06 Greater work pressure and constant time pressure leads to acceptance of RTE and RTC’s 10 Changing Food Behaviour Working women in the urban population Popularity within working and studying bachelors due to convenience Traveling by the high end working groups of the society 11 Profusion of Brands Modern generation going for branded products for better quality and hygiene 12 Retail - A Smart Choice for Modern Women Aesthetically packed products A pleasant shopping environment at the same Price Convenience of one-stop shopping with wider Product portfolio at a single location Speed and Efficiency in Processing Better Quality and Hygiene Packaging playing a key role 13 Importance of Packaging in Food Retail In the current market scenario, packaging provides the most important first point of contact by which a company presents its products to consumers. Innovation in packaging designs and colours is taking place as brands jostle for shelf appeal and space. Key role of packaging is to provide eye catching consumer contact, keep the product intact and maximize shelf life with design innovation. 14 Emerging Trends in Packaged Food 15 Shift from Loose to Packed Shift Every tea garden has its own branded tea value 16 Shift from Loose to Packed From a local shopkeeper selling loose Vegetables to hygienically packed Vegetables 17 Shift from Loose to Packed From a local shopkeeper selling loose oil to hygienically packed Edible Oil 18 Shift from Loose to Packed Dairy Milk Hygienically Packed Milk 19 Innovative Food Packaging 20 Shift from Rigid to Flexible Bottles to Flexible Rigid packaging is giving way to flexible packaging in the form of standup pouches, retort pouches, spouted pouches which offer similar performance and shelf appeal at lower cost. 21 Shift from Rigid to Flexible Rigid packaging is giving way to flexible packaging in the form of stand-up pouches, retort pouches, spouted pouches which offer similar benefits at lower weight and cost. 22 Dynamic Growth in Key Sectors 23 Commodity Foods There is a surge in demand for well packed commodity foods like atta, cereals, rice, sugar, salt etc. Packaging is being designed for convenience, shelf appeal and to retain freshness. 24 Nitrogen Flushed Snack Foods Nitrogen flushing process is used to pack a variety of food products like wafers, namkeen ( range of products by Haldirams), snacks (cheese balls, French fries) and coffee. Indian Snack foods are catering to regional preferences. 25 RTE & RTC Food Convenient ready to eat (RTE) and ready to cook (RTC) food products have changed the traditional concept of spending long exhausting hours in the kitchen making curry and gravy dishes, batter, paranthas and rice. Priced to target middle class population 26 Packaged Fruits and Vegetables Newest Challenge for the Packaging Industry 27 PE Extruded Nets and Rachel Bags PE Extruded nets will be used to pack – Onions – Potatoes – Garlic & Ginger – Hard fruits like Ber Rachel Bags will help Retail Businesses to pack 25- 50 Kg produce at farms 28 Packaged Fruits & Vegetables Pre- weighed beans, peas, carrots, broccoli, etc. automatically packed on horizontal packaging machines in clear PE pre-formed bags will become popular with growth in organized retail business. Stretch- Cling films will find wider applications when large fruits and vegetables like cabbage, cauliflower, gourd, melons, etc. are individually wrapped for enhanced shelf life. 29 PP Thermoformed Trays / Stretch Cling Wrap Thermoformed PP Trays to hold 4-6 large fruits with Stretch Cling Wrapped films for good visibility and shelf life. 30 IQF for Frozen Fruits & Vegetables Laminates are used to pack fresh / cut vegetables and fruits. Moisture is drawn and then individually quick frozen to be stored at 180C or below. These offer a clear view and extended shelf life. 31 Dried Fruits & Vegetables Dried fruits provide great value addition and very popular in Turkey, Asia and US as a snack. Widely marketed as snack and food supplement. • • • • • • • • • Mangoes Strawberries Apples Kiwi Berries Figs Mushrooms Plums Broccoli 32 Dried Mangoes Dried Strawberries Fruits are marginally processed with sugar, salt etc for added flavours. Drying fresh F&V to increase shelf life Simplest method of preservation requiring little outlay of special equipment and expense. Adds value at low cost. Preserves food by removing moisture from food to a point where growth of micro-organisms cannot be supported. Fruits and vegetables selected for drying should be fresh and ripe to maintain quality and preserve nutrients. Methods for Drying : • • • Dehydrators Oven Drying Sun Drying Dried Apple Rings Dried Broccoli 33 Drying fresh F&V to increase shelf life Pretreatment before Drying : Fruits : • Require some sort of pretreatment to prevent browning and loss of vitamin C. • Sulfuring, Blanching, Sulfite Dip, Ascorbic Acid solutions are some of the methods for pretreatment. Vegetables : • Water blanching and steam blanching are two methods for pretreatment of vegetables. • Water blanching results in greater loss of nutrients but takes lesser time than steam blanching. 34 Drying fresh F&V to increase shelf life Packaging The packaging material must provide a good barrier between the fruit and environment. Packaging centres to use barrier pre- formed bags on Horizontal Packaging Machines. Retail outlets to be equipped with inexpensive vacuum packing machines to pack the desired quantity in barrier 5- Layer PE films on the spot. Use of dried F&V Dried fruit may be eaten as it is or rehyderated for eating Dried vegetables are generally added to soups or stews and not used alone as a side dish. Rehyderation generally takes 11/2- 2 hours in enough water to cover the product. 35 Frozen Food Frozen ready meals, includes frozen meat, poultry and fast food.These products require excellent barrier with EVOH, PVDC, etc. 36 Summary The stage is set for consumers to buy all their staples in well packed convenient packs. Ready availability of hygienically handled and packed fresh F & V. Easy availability of frozen F & V. Range of dried F & V, marginally processed as a healthy snack. Vacuum packaging for Bulk handling and extended shelf life. VAST Choices to spoil Consumers by Retail Chains 37 Thank You! Reliance Industries Limited www.ril.com