Packaging: Contributor towards Business Profit Making

The concept of packaging started with the packages made of natural materials, including reed baskets, wooden barrels, woven bags and wineskins. Cans made up of iron and tin plated steel, along with paperboard cartons and fiberboard boxes, were discovered in the 19th century. Bakelite closures, cellophane, aluminum and plastic packages became popular in the 20th century.

Today, flexible packages like those made up of laminated sheets of PVC, paper and metal foils are other popular packaging materials. It is the global rise in need and demand for packaging that has led to the improvement of packaging materials. Businesses and production houses integrates packaging as an important part of their profit making process.

Here are some important reasons for packaging being an important part of business process:

• To protect the products against physical damage.
• To protect packaged goods and drinks against adulteration.
• To prevent moisture, heat and other weather elements from damaging the products.
• To enjoy convenience in handling and transportation.
• For effective marketing. In fact, it is among the most important motives for businesses to use packaging.

Packaging Industry Overview
According to the latest analysis, North America has the highest consumption of packaging material per capita, accounting to US $45. The packaging consumption per capita is US $31 in Japan and US $25 in Europe. Consumer market accounts for 70 percent of the global packaging sales, leaving only 30 percent for the industrial applications. Food and beverage industries are the main consumers with respective value of US$ 145 billion and US $75 billion.

In India, the businesses have started focusing on packaging as an important part of the overall business strategy. Processed foods, mouth fresheners, beverages, bakery industry, spices and edible oils, drugs and pharmaceuticals and cosmetics are among the major consuming segments of the packaging industry in India. Some of the reasons for the increase in importance of packaging in India are:

• Urbanization in all parts of the country.
• Increase in consciousness towards health and hygiene.
• Popularity of small packets and sachets.
• Changing lifestyle and increase in packaged food demand.

Packaging adds value to the products and services and this reason is enough for businesses to take it seriously. Being such an important part of business process, there are a lot of packaging companies which are giving their valuable services to the business who are involved in product manufacturing and supply operations.