The sustainable packaging industry may grow by 4-6%, to reach 770-800 KT by 2024: Report

The sustainable packaging industry is expected to grow by 4-6 per cent and reach around 770-800 kilo tonnes (KT) by 2024, Metal Container Manufacturers' Association (MCMA) said on Saturday. The MCMA represents the interests of companies involved in the production of metal containers/ packaging and allied components.

The demand growth of tinplate is to be supported by robust growth in processed food, dairy products, beverage, paints, and aerosol segments, the MCMA said in a statement. Tin containers/cans like any other metal products are 100 percent recyclable and can form an important part of the global strategy to ensure the sustainability of the environment.

In India about 60 per cent of the tinplate is estimated to be recycled. This is because of the unorganized nature of the recycling industry. With a proper scrap collection and recycling mechanism in place, this share can be significantly increased to match global standards.

Looking at countries such as Germany, the material has consistently exceeded all required recycling rates for 10 years. Considering the market is already favouring the industry in terms of demand but much is dependent on government policies as soon as it becomes favourable it will surely pin a promising future for the Indian metal packaging industry.

The rapid growth of the market is primarily driven by the pharmaceuticals, edible oil, foods, and beverage industries. Huge investments in the food processing, personal care, and pharmaceutical end-user industries are creating scope for expansion of the packaging market. The end-user of such product includes food, beverage, healthcare, cosmetics, personal care, and household care and industrial segment.

Moreover, metal packaging also provides multiple packaging options for gifting of watches, high-value products, etc. It offers semi-transparent packaging with tinplate for luxury items; also, the food processing industry is on the rise with requirements for tinplate containers for packing fruit juices, cut vegetables & fruits, meat products, fish, etc.

But the 10,000 crore metal packaging industry has been under continued distress. While recently MCMA had received a three-month extension from the Steel Ministry for the implementation of BIS notification, but it is not sufficient, the statement said. Neglecting the fact that the metal packaging industry and its recycling in India is a sustainable and environmentally friendly packaging option, the government is restricting the manufacturing of such products by imposing BIS, it said.

The policymakers need to urgently look into this matter as sustainable packaging is the need of the hour and something that the industry can take advantage of the current demand and take a leading position, MCMA added.

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Credit: Money Control