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written by | October 11, 2021

Learn About Starting a Successful Food Packaging Business in India

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Have you ever felt attracted to buy something just because its packaging was too good? Well, that has happened to everybody. Many brands have touched heights, and packaging proves to be a big one out of the many strategies they use. 

When you're not familiar with any food item, you judge it with two things only one is the brand name, and the second is the packaging. Whether it's India, the USA, or any other country, food packaging always proves to be a very important marketing component. 

Now, let's look at the case from the other side. What if you make food packaging your new business venture? Can it bring great profit, and is it possible to set up such a business in a short span of time? Is there truly high demand in the market for the same?

The answer to all the above questions is yes.

Did you know?

In 2019, India's packaging market's worth was USD 50.5 billion, and by 2025, experts expect this number to hit USD 204.81 billion. That is almost 4x growth of the overall industry in just 6 years, and very few industries are thriving at that speed. 

How to Start a Successful Food Packaging Business in India?

Packaged food's demand is higher than ever in India, and it impacts Western culture. Most of the food industries are attempting to make their packaging more reliable and attractive and increase the shelf life of food items.

If you lay out a solid plan, arrange all resources, and complete your business setup, you can establish a great packaging company and attract many orders from food companies.

Create a Plan

What is your current financial status? Do you have enough funding for establishing a large business, or you're in favour of starting as a small business? Plan the desired size of your new business, and make sure you don't start dreaming too big. 

Falling short of resources in the middle of the path isn't a good experience at all. So, decide what is already within your reach, and you've got all the time to expand your business once you strongly establish it and develop a dependable client base. 

Also, you can think of whether you can approach online or just want to stick to the traditional style of business. If you can afford it, you must put marketing efforts online. 

No matter what size or medium (online/offline) you decide, you can't expect magic to happen within days. You'll have to spend some time in the market, make some connections, develop the initial base of clients, and that's how you'll start making a considerable profit.

Do Your Research

Opening a packaging business is undoubtedly an attractive venture, but it's somewhat tough. If you don't do proper research before heading into business, there are hardly any chances of your success. 

Do your competitor research, and find from where do they generate leads. Following the competitor's strategies often makes 50% of the game for you. You should also know how to break the market and make your way through the competition. 

Don't always emphasise what other competitors are doing. You should have a set of your strategies also. Besides being a researcher, remember, you're a shopkeeper also and your conveying skills need to be sharp enough.

Also Read: How To Start A Plastic Recycling Business

Decide on Products

If you think about starting a packaging business, there won't be any deficiency of food products to choose for packaging. Right niche selection is very important, and don't do that without understanding the level of competition in your market. 

If you select the right product, it won't be a wonder if you begin getting many orders from the manufacturer in the initial phase of your packaging business. You can start with fewer products in the beginning and later on enlarge this list. If you begin with a big list, you'll just confuse yourself. Also, if the low budget to get materials for packing is bothering you, the best Government Loan Schemes in India can help you out.

Packaging Unit Location

The location is crucial for the food packaging industry. This is because many ingredients you'll have to pack in the packaging business are non-perishable. The packaging facility must be placed so that the inputs received are not dropping in quality. The selling of goods after packing on the market is equally crucial.

Different Types of Packaging

There are three kinds of packaging available:

Cartons of Boxboard or Paperboard

Boxboard is a thin and light-weight carton commonly used to transport a single object such as toys, shoes, crackers, breakfast cereal, etc. It doesn't have that middle layer (corrugating medium) to strengthen the box.

Corrugated Boxes

Corrugated containers are used for transporting heavier goods like fruits, electronic products and vegetable appliances. They will provide good safety to transport various similar items in one box.

Paper Sacks and Bags

They can be classified into two kinds:

  • Paper bags to transport food items or other retail items
  • Multi-wall bags to carry cement and flour

Also Read: Explore The Profitable Food Business Ideas

Points to Consider Before New Product Packaging Launch

Among the most important food packaging business ideas, materials play a vital role. Let’s know which packaging materials are the most important in the packaging business from home.

Product Protection

A robust primary packaging is required to ensure food safety throughout transportation, handling, distribution in the store and consumption.

Product Safety

Safe packaging for products helps reduce or eliminate food recalls and dangers. Also, it helps in traceability throughout the supply chain.

Product Freshness

Correct packaging is essential not only to improve the freshness of your product, but also to improve product look and preserve flavour, which increases the shelf life of products. Also, it maintains the product's quality.

Brand Image

It helps you improve marketing channels, convenience, shelf appeal and branding along with integrity or availability. 

FSSAI Registration

In regards to a food packaging business, you must register your business under FSSAI in India. In simple words, FSSAI stands for the 2006 Act regarding Food Safety and Standards. After you finish the registration process for your food packaging, you will receive a business entity related to manufacturing, production, processing, sale, distribution, import, export, etc. Also, you’ll get the food packaging licence to store any food or beverage.

Conclusion

It's possible to scale up the packaging business to great heights in less time, as you're doing B2B. If you somehow satisfy any big food manufacturer, you may even receive large-scale and continuous orders. However, invest a good time researching the market, as most of your future profit or loss will depend on your research only. So, these were the ins and outs of setting up a food packaging business.

Follow  Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: Does starting a food packaging business need a lot of funds?

Ans:

Capital is amongst the first things to arrange before setting up your food packaging business. However, how much funds you need entirely depends upon your business planning. You can outreach some sponsors to avail funds or visit banks for loans.

Q: What are the basic materials needed to pack food items?

Ans:

The following are essential materials to begin an enterprise in food packaging:

  • Mailers
  • Boxes
  • Plastic wrap
  • Shipping labels
  • Foam packing boards
  • Permanent markers
  • Tapes
  • Scissors/cutters
  • Computer
  • Credit card processing equipment
  • Printer
  • Cash register
  • Work order form

Q: What are the basic requirements to start a food packaging company in India?

Ans:

  • Develop a solid business plan
  • Find the top packaging companies on board
  • Ensure you have all the equipment to begin your own food packaging business. Each business will differ in its specialisation.

Q: What minimum amount will you need to invest to begin an enterprise in food packaging?

Ans:

It is necessary to create an initial product line. A minimum cash investment of between ₹40,000 and ₹50,000 will be needed to purchase the raw products and packing. The kitchen equipment and machinery required for the food packaging industry will vary based on the type of food item you intend to pack. However, if you wish to buy some equipment and use labourers to pack the food items in larger-scale production, it could cost you up to around ₹2 to ₹3 lakhs.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.