As we move ever closer to a new year, it’s time to ask what kinds of trends, priorities and disruptive innovations we can expect 2023 to bring. Pankaj Poddar, Group CEO, Cosmo First, speaks about the year that has passed, challenges and the industry’s expectations in 2023.
Manash Das: How has 2022 been for the packaging industry?
Pankaj Poddar: The packaging and film industry in India observed a constructive year in 2022. Expanding at a rate of 25% annually, packaging is one of the rapidly growing industries in India. The industry has noticed a growth in demand and has been able to meet the prerequisite with increased production. Consumption of polymers in the packaging sector is higher than the rest showing the popularity of polymer-based packaging given its lower weight and significantly lower carbon footprint. Plastic packaging is also strong and durable, making it ideal for protecting products during transport and perfect for creating custom packaging designs.
The growing popularity of e-commerce and the increasing preference for sustainable packaging are some of the major trends impacting the industry. The government has issued new guidelines for developing a circular economy by issuing Plastic Waste Management (Second Amendment) Rules, 2022. The regulations are based on Extended Producer Responsibility (EPR) principle and the 3R’s of Reduce, Recycle, and Reuse in order to push for a circular economy.
Manash Das: Challenges…
Pankaj Poddar: Despite significant growth, the industry is facing several headwinds. The supply is continuously growing faster than demand, putting pressure on margins. Polymer has the lowest carbon footprint but still gets negative publicity due to the poor waste collection in many parts of the world. The geopolitical tensions and the correction in the supply chains is putting fuel to the fire.
Manash Das: What can the industry expect in 2023?
Pankaj Poddar: The margins are expected to remain under pressure. There is a need for continuous innovation within the industry. Some of the challenges for recycling can be better managed by having standardization and avoiding small packs, especially for toffees, mouth fresheners and gutka.
Brands will choose chlorine-free, transparent barrier films, and coated films that do not impede the recycling process. As we progress toward the objective of a circular economy, it is critical to invest in materials with more reuse potential. The future of packaging is more sustainable and efficient. Polymers will stay in demand for their durability, strength, and design flexibility, and they find special and inventive applications in a variety of industries, including consumer technology, packaging, aerospace, building and construction, healthcare and medicine, and everything in between.