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.
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