Pack-Man’s Weekly Wisdom

Pack-Man brings in six headlines for you - Increase in retail sales; Reduce, reuse and recycle plastics; Pharma revenue to grow 6-8%; Cloud kitchens may soar high; Consumers buy regular packs; and ITC’s growth in FMCG sector.

23 Mar 2023 | By WhatPackaging? Team

Pack-Man wraps-up highlights for you

Organised retail gets pre Covid charm
Sales increased 18 % over pre Covid levels during April to January. Remarkable part was price-led and not volume-driven. Growth despite inflationary pressures shows that heeled consumers are ready to spend again. Consumption of daily groceries had taken a hit after Covid. Recently, the industry has coped up and consumers are spending more on luxury as well as essentials.

Why is the ban on plastic self-defeating?
Reduce, reuse, recycle (RRR) is often prescribed as the most effective mantra for the problem of plastic persistence. The point is to find solutions to the plastic problem in a manner that converts the problem into a giant, profitable opportunity that creates decent livelihoods, profits and sustainability. This, of course, is a bit more complex than an unenforceable ban. But it is also more sustainable.

 

Domestic pharma revenue expected to grow 6-8% next fiscal: ICRA
The Indian pharmaceutical market observed a robust CAGR of 10.9% between FY 2012 and FY 2022.

“Going forward, ICRA expects revenue for its sample set to increase by 6-8% in FY2024 against 3-4% growth in FY2023,” said Mythri Macherla, assistant vice-president and sector head, ICRA in a statement.

She added that structural factors like an ageing population, the continued rise in lifestyle or chronic diseases, and new product introductions, are expected to support the growth of the revenue for the industry. 

Cloud kitchens may soar high
The cloud kitchen market is expected to evolve at an annual average pace of 24% to reach USD 1.9-bn by FY22-26.

Pakhi Saxena, practice head of retail and consumer packaged goods, Wazir Advisors said,“The growth of cloud kitchen has driven both - demand side and supply side, and a significant number of dine-in players were seen pivoting to the cloud kitchen model.”

There is also a shift in consumer habits. Households, in general, are seeking convenient and accessible-priced meals instead of cooking at home.

Consumers buy regular packs
Consumers are now back to buying regular or mid-priced packs of the FMCG products. These mainly include snacks, biscuits, edible oil, and detergents. Consumers have started upgrading their purchases and are now selecting packs of Rs 30 to Rs 80; including in modern retail and eCommerce. 

Lately, in lieu of the inflation, consumers were opting for smaller packs, but as the inflation is looking to settle, consumers have shown the interest in buying mid size or regular packs.

ITC grows in FMCG
ITC has been growing in the Indian cigarette market with the recent increase in overall tax on cigarettes by 2 to 2.5%. The paperboards segment is expected to grow above the pre-pandemic level. ITC’s cigarette volume CAGR improved to 6.3% in Q3 FY2023, estimated by KIE. The paperboards segment delivered robust results in the past 12 to 18 months, due to the increase in pulp prices. 

With the help of ITC’s in-house capabilities for manufacturing pulp and the implementation of industry 4.0, the company remains competitively strong.

 

Latest Poll

The packaging industry is confused by recycling and sustainability rules in India. What is the biggest challenge?

Results

The packaging industry is confused by recycling and sustainability rules in India. What is the biggest challenge?

Shortcomings in EPR policy

 

22.22%

Inadequate infrastructure

 

11.11%

Shortage of recycling firms

 

16.67%

Lack of consumer awareness

 

50.0%

Total Votes : 18

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