Festival or no festival, sustainable packaging leads

Uflex – the festive shift from unit packs to value packs

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Festival
Diwali gift aisle at the Big Bazaar supermarket at Mall of India in Noida. Photo - PSA

Festivals in India are known to lift spirits and bring joy to people from all walks of life. For consumer businesses, the festival season is more significant because yearly targets loom large in this period. The GST collection for October has already touched the pre-pandemic levels of over Rs. one lakh crores. 

 

Speaking of the demand during the festival season, Jeevaraj Pillai of Uflex said, “Overall, we expect the demand to go up in certain categories like staples, sanitation, pharma products, and average demand for cosmetics, high-end perishables and other non-essentials. However, the end consumer is still not feeling confident about their purchasing power due to the on-going pandemic and would rather keep their expenditures to a minimum.”

Consumers’ buying behavior

Jeevaraj Pillai, joint president – Packaging and New Product Development, UFlex

 

The Covid-19 pandemic has brought significant changes in consumers’ buying behavior. The necessities have become the main focus, and non-essentials have been deprioritized. Also, safety, hygiene, and wellness have become permanent factors to consider before making any purchase. Pillai added, “The spends on luxury goods took quite a hit, and although it will take longer to come back to its pre-pandemic levels, we can see a marginal pick up in it during the festive season. Furthermore, consumer values and perspectives are evolving as the younger generation becomes a larger and more significant portion of the workforce.”

 

Pillai says that most of Uflex’s FMCG clients target only linear growth without any particular focus on new products and features during this festival season. He also sees a shift from unit-packs to value packs.

Sustainability

 

“While sustainability goals got pushed to the back burner during the pandemic, we are now seeing consumer packaged goods (CPG) brands recommitting to these goals, and they prefer to work with companies that can help them achieve these. Irrespective of the festive season, sustainability will drive the conversation in the industry hereafter,” states Pillai.

 

UFlex has been scaling its investments in products and technologies to offer a green solution portfolio and address plastic waste. “Our portfolio of multilayer packs is recyclable. UFlex also recycles PET bottle waste to make packaging films out of it and further uses those films to make labels and packets, thereby creating a circular economy.” He explains that the company’s approach would continue to be driven by innovating and improving its product portfolio with a high sustainability quotient while being economically viable.

Impact of Covid-19 on business to date

 

Covid-19 had brought various industries to a halt and impacted the global economy substantially. “During the lockdown and border shutdowns, the consumption levels for life-sustaining commodities such as food and medicines increased manifold, leading to hoarding of stocks, hence the packaging industry that serves these essential industries of FMCG and pharmaceuticals were not affected. On the contrary, packaging companies like ours that were able to service the essential commodity industries to ensure the supply of goods to the public at large witnessed higher demand,” he said. “Since packaging is deemed an essential services segment, our plants were running with minimal staff strength and maximum-security measures.”

 

At the beginning of the pandemic, Pillai said the demand curve surged from panic buying and hoarding. “As normalcy set in after the lockdown was lifted, we observed the demand coming back to normal. Overall, our business grew as the demand for packaging also increased due to the safety and hygiene factors attached to packaged goods.”

 

Considering the overall market sentiment, Pillai expects demand to remain constant or experience a slight uptrend without any drastic shifts over this festive season. 

Economy and industry recovery

 

“Packaging is an essential industry that binds the world together and has truly been a forerunner of the economy and consumption. It is important to understand that packaging serves as a gateway to ensure safe consumption and is necessary for people, especially given the fear of spreading the virus. This is the reason why we haven’t seen the industry affected much as other segments.” Uflex has diverse clients, including leaders from pharmaceuticals, FMCG, and dairy products.

 

“With the effect of the pandemic starting to wane and the festive season approaching, we have started to see green shoots of recovery in certain industries that are recovering like white goods, automobile, and retail. However, aviation, travel, and tourism are likely to remain affected till the vaccine is introduced, and the world is free of Covid-19,” he concludes.

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

It is the right time to support our high-impact reporting and authoritative and technical information with some of the best correspondents in the industry. Readers can power Packaging South Asia’s balanced industry journalism and help sustain us by subscribing.

– Naresh Khanna

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Technical Editor - Mandeep Kaur is working with IPP Group and holding editorial responsibilities for the IndiFoodBev and PSA Healthcare platforms. Earlier she handled editorial responsibilities of food, beverage, and agriculture publications at another publisher. A gold-medalist in M Tech (Food Technology), she has hands-on experience in operating different types of instruments related to physico-chemical testing of grains and flour. She has worked at Evalueserve in the Intellectual Property (IP) division for more than three years handling projects in the life sciences domain.

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