Exclusive Interview with : Rajesh Nath, MD of German Engineering Federation (VDMA)
Updated on: 29 Jun 2016
German Engineering Federation's (VDMA) liaison office in India at Kolkata serves Indo-German economic relations in different engineering sectors. This office promotes the activities of VDMA member companies in India. VDMA India office maintains close relations with the Indian industry, Indo-German companies, embassy and consulates and various Indian industry associations, particularly with CII, FICCI, EEPC, ASSOCHAM, FIEO, CAPEXIL, ICC, and IGCC. Rajesh Nath, MD, German Engineering Federation (VDMA), in an email interaction with Anurag More, highlights the growth and emerging trends in the food and beverage packaging sector in the country and more. Excerpts:
Where do you see the packaging for food and beverage trade in the next five years?
The food packaging industry is India's fifth-largest sector with a current worth of nearly US$40 bn. By 2020, it is expected to reach over US$65 bn. With a per capita consumption of 24 kg per year, Indian packaged food market is still at an early age. Due to rising incomes, urban lifestyle changes and modern retail trade, the food packaging market will expand distinctly. As urban regions account for more than 80 per cent of the demand for packaged food, there is a huge growth potential in semi-urban and rural regions. As about 70 per cent of India's population lives in rural regions.
If we look at the numbers: India's per capita annual packaging expenditure was US$20 in 2011, which is significantly lower than the top 20 market average of US$347.6. The low per capita expenditure offers a huge business opportunity for packaging companies. India's emerging market is one of the most attractive to foreign investment and this also includes the packaging industry in India.
What are the packaging requirements for food and beverage industry in India?