Bizongo plans to go to abroad in the future, especially the South East Asia market, which act as an excess supply market where there are many packaging suppliers and manufactures and they starve for the right quantum of business from end user industries.
Post inculcation of fresh new capital investment by VC’, Udaan plans to focus on marketing their brand heavily and expand into new categories. It also aims to invest in enhancing payments, fulfillment delivery and SME financing (Bill Discounting and Short Loans), which are key aspects of the B2B ecommerce play.
Demand for much more personalization, convenience, health, and affordability, will drive SKU proliferation to new heights. Industry might witness a natural/organic trend in favor of higher glass and fiber products demand in the coming years.
India is a major player in the packaging market and contributes ~8.0% to the global packaging industry; however Indian packaging manufacturers still lack the opportunity to export due to lower standards of products in comparison to the rest of the world, especially China & USA. The industry is currently under-utilized as a large segment still under unorganized space & is at its late growth stage tending towards maturity. There is a very high possibility of a technological disruption happening in the industry which will pave the path of its future growth in the coming years.
What is the Need for an Online B2B Platform Focusing on Packaging Materials?
As discussed above, India does not have the technical competency to compete with the world as there is a mismatch in terms of product quality & machinery used. An online vertical platform would be able to help the packaging manufacturers understand the problem areas which need special focus by providing consultancy services in specific & targeted areas. Furthermore, lack of legal & demand trend knowledge among MSME packaging manufacturers also hampers the supply chain which could also be addressed by the B2B platform players in future.
Unique Challenges faced by the Packaging Industry in light of COVID-19
The packaging material industry is operating much below its installed capacity as it faces issues in supply lines and shortage of manpower due to the lockdown. The packaging industry is up against some unique challenges in the face of COVID-19. The 21-day nationwide lockdown has brought the entire packaging supply chain to an almost grinding halt. The government is making all efforts to continue the steady supply of essentials to the 1.3 bn strong Indian population. However, this won’t be possible without packaging the product where the Online Packaging B2B platform can come in handy as it will not only help in faster procurement of materials but could also help in minimizing the risk involved in the supply chain process through its technological innovation. The current situation of the Covid Virus outbreak has shifted everything to online space, now it is quite evident that an Online Vertical Platform could be the way forward to avoid any further disruptions in the supply chain.
Macro- Economic Challenges amidst the Outbreak
At a macro level, the GDP growth slowed down to a seven-year low of 4.7% in October-December 2019. The National Statistical Office has also pegged the economic growth at 5.0% for FY 2019-20 in its second advance estimates. These factors have directly impacted employment rates in the packaging industry and have hit the consumer sentiment and putting a brake on spending. This coupled with the COVID-19 pandemic is straining the supply side and hurting the economy as well. Cumulatively, these factors will impact the packaging industry since a large section of the population holds on to discretionary spending that propels the economy.
Unbranded Products & Fragmented Supply Leading to Lack of Quality Checks
At a micro level, the fragmented nature of the supply side leads to industry challenges. Adding up to that, packaging as a product category is unbranded, together, they create a mediocre customer experience with issues such as inconsistent packaging quality and tedious vendor discovery as well as lack of sanitization & genuine quality checks. For manufacturers, this means underutilized capacities, inconsistent processes, and reduced margins. End result is a need of optimal demand and supply system with proper quality checking mechanism at every important threshold to maintain product quality and trust.
Tackling the Current Situation with Vertical Online Platform for Packaging
The current situation is just another example of how an online platform can help the industry continue on its growth path and further provide value addition as packaging is of utmost importance in today’s scenario, providing safety from numerous threats. Digitization and Automation is of utmost importance due to the cyclical nature of the business/industry. Digitization will be in focus as to drive down costs & gain a competitive edge with consumers.
The industry will generate greater customer value and service through technology integration in packaging in future.
Analysts at Ken Research in their latest publication “India Packaging Industry Outlook to FY’2025 and Operational Analysis of Online B2B Platforms in India“ observed that the fast-growing Indian packaging industry needs to focus on key areas such as Safety, Environment Protection, Reusability and Recyclability of packaging material along with innovative ways to increase sustainable use of the materials with a view to promote the growth of the sector in a more sustainable way. The India packaging industry is expected to grow at a CAGR of ~14.0% during the period FY’2019-FY’2025.
Key Segments Covered: –
By Nature of Packaging
By Type of Packaging Material
Others (Special Laminate Sheets, Woven Materials)
By End Users
Food & Beverage
Personal & Home care
Other End Users (Automobile, Textile, Construction, Medical Devices)
Tier 1 Cities
Tier 2 Cities
Tier 3 Cities
Key Target Audience
Online Commerce Industries
Online B2B facilitating Entities
Packaging Industry Associations
Private Equity and Venture Capitalist Firms
Time Period Captured in the Report:
Historical Period: FY’2014-FY’2019
Forecast Period: FY’2019-FY’2025
Indian Packaging Industry Competitive Ecosystem
Balmer & Lawrie
Radha Madha Corp. Ltd
Other Players- Pharpur 3P, Amcor Limited, Huhtamaki PPL, Hindustan Tin Works Ltd, Shetron & Umax Packaging Ltd.
Online B2B Platform Competitive Ecosystem
Power 2 SME
Other Players include Alibaba, Ninjacart etc.
Key Topics Covered in the Report: –
Overview of India Packaging Industry & Online B2B Platforms
Ecosystem of Manufacturers & other entities with Industry Bottlenecks Faced
Regional Analysis of Manufacturing Hubs & End users of Packaging
Demand & Supply Forces Analysis of Online B2B Platforms & Packaging Industry
New Trends witnessed in Online B2B Packaging Industry
Global Comparison of Indian Packaging Industry with India
Packaging Industry Segmentation on Region, End User, Nature & Material
Value Chain & Gap Analysis of Packaging Industry
Consumption Trends of Packaging Material in India
Porters Five Forces Analysis of Indian Packaging Industry
Cross Comparison Analysis of Packaging Manufacturers & their Company Profiles
Future Outlook & Segmentation of Packaging Industry & Online B2B Platforms
Bottlenecks Faced by Manufacturers in Online B2B Packaging Industry
Ecosystem of Online B2B Platforms in India
Service Portfolio of Indian Online B2B Platforms
Digital Penetration of Indian MSMEs in various Online Services
Vendor Choosing Criteria for Online B2B packaging Industry
Case Studies on Online B2B Platforms including Operating Outlook, Financial Analysis, Business Model, Services, and Investment Analysis & Shareholding Pattern
Feasibility Report on an Online Vertical Packaging Focused B2B Platform
Analyst Recommendation on how to set up an Online Vertical Packaging Focused B2B Platform
For More Information on The Research Report, Refer to Below Link: –
Related Reports by Ken Research: –
UK Online Retail Market Outlook To 2025 – By Product Categories (Apparel And Footwear, Food And Drink, Media Products, Consumer Electronics And Others), By Desktop And Mobile Mode, By Gender (Male And Female) And By Mode Of Payment (Debit+Credit Card, Net Banking And Cash On Delivery)
Taiwan E-Commerce Market Outlook To 2023 – Online Retail (By Product Categories, By Desktop and Mobile, By Gender); Online Travel (By Intermediary And Direct Online Sale And By Desktop And Mobile); Online Payment Gateway Market
Contact Us: –
Ankur Gupta, Head Marketing & Communications