Packaging Trendsin

Organized Food Retail

Reliance Industries LimitedBy

Veena Mathur

2

Agenda

Organized Food Retail Chain

Key Growth Drivers

Importance of Packaging

Packaging Trends in Food Retail

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FarmCollection in Crates/

Bulk binsTransportation

Organized Food Retail Chain

Retail Outlet

Farm to Consumers in hygienic packs

Packing Station

4

Key Growth Drivers

Growing Economy

Consumption Boom

Rising Income levels

Rise in Working Population

Increasing Nuclear Families

Changing Food Behaviour

Profusion of Brands

Change in India’s Socio - Economic Structure

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India …

Slow rate of growth

Bureaucratic

Protected and slow

Small consumer markets

Underdeveloped infrastructure

One of fastest growing world economies

Reasonably proactive

Opening up of sectors for investment

Promising consumer markets

Significant investment in infrastructure creation for industry

YESTERDAY

TODAY

…..is setting the pace for growth and stability

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2nd fastest growing economy.

4th largest Economy (PPP) – 3.3 Trillion US$

Accounting for ~20% of Asian and ~10% of Global growth in last two years. (IMF: World Economic Outlook 2005)

Drawing Global attention as outsourcing destination and attracting large financial inflows.

Only India among BRICs to have Sustainable growth at > 5% till 2050. (‘Dreaming with BRICs: The Path to 2050’ Goldman Sachs Report)

India to be a developed nation before 2020

Growing Economy

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… excellent growth prospects

1972-82 57 2

Years to double per capita GDP

1982-92

1992-2002

23 5

18 8

No. of times increase in income in life time

Source : GOI

Accelerating GDP Growth

2002-12GDP – 7%

2002-12GDP – 9%

14 16

10 32

Red

uced

to 1

/5 ti

mes

Increase by 16 times

*

**

* Most Probable Scenario

** Optimistic Scenario

8Source : NCAER

The Very Rich

The Consuming Class

The Climbers

The Aspirants

The Destitute

All figures in Million Households

19951995--9696

4444

3333

32.532.5

54.154.1

1.21.2

20012001--0202

3333

2424

4646

74.474.4

2.62.6

20062006--07 (P)07 (P)5.25.2

1616

2020

8282

7676

Addition of 100 Mn to consuming class during 1996-2002Reduction in Aspirants and destitutes by about 225 Mn in 10 yearsHalf a bln very rich & Consuming class by 2007

Consumption boom Rising Income Levels

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Rise in Working Population

545658606264666870727420

00

2005

2010

2015

2020

2025

2030

India Brazil China

Russia G6

Strong Demographic Advantage over Next 25 Years

% of working population (15-60 years)

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Increasing Nuclear Families

Transformation from Jointto Nuclear Family

Nuclear Family

Joint Family

76.42%

23.58%

0.00%

20.00%

40.00%

60.00%

80.00%

2005-06

Greater work pressure and constant time pressure leads to acceptance of RTE and RTC’s

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Changing Food Behaviour

Working women in the urban population

Popularity within working and studying bachelors due to convenience

Traveling by the high end working groups of the society

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Profusion of Brands

Modern generation going for branded products for better quality and hygiene

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Retail - A Smart Choice for Modern Women

Aesthetically packed products

A pleasant shopping environment at the same Price

Convenience of one-stop shopping with wider Product portfolio at a single location

Speed and Efficiency in Processing

Better Quality and Hygiene

Packaging playing a key role

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Importance of Packaging in Food Retail

In the current market scenario, packaging provides the most important first point of contact by which a company presents its products to consumers.

Innovation in packaging designs and colours is taking place as brands jostle for shelf appeal and space.

Key role of packaging is to provide eye catching consumer contact, keep the product intact and maximize shelf life with design innovation.

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Emerging Trendsin

Packaged Food

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Shift from Loose to Packed

Every tea garden has its own branded tea value

Shift

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From a local shopkeeper selling loose Vegetables to hygienically packed Vegetables

Shift from Loose to Packed

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From a local shopkeeper selling loose oil to hygienically packed Edible Oil

Shift from Loose to Packed

19Dairy Milk Hygienically Packed Milk

Shift from Loose to Packed

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Innovative Food Packaging

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Rigid packaging is giving way to flexible packaging in the form of stand-up pouches, retort pouches, spouted pouches which offer similar performance and shelf appeal at lower cost.

Bottles to Flexible

Shift from Rigid to Flexible

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Rigid packaging is giving way to flexible packaging in the form of stand-up pouches, retort pouches, spouted pouches which offer similar benefits at lower weight and cost.

Shift from Rigid to Flexible

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Dynamic Growthin

Key Sectors

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There is a surge in demand for well packed commodity foods like atta, cereals, rice, sugar, salt etc. Packaging is being designed for convenience, shelf appeal and to retain freshness.

Commodity Foods

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Nitrogen Flushed Snack Foods

Nitrogen flushing process is used to pack a variety of food products like wafers, namkeen ( range of products by Haldirams), snacks (cheese balls, French fries) and coffee. Indian Snack foods are catering to regional preferences.

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Convenient ready to eat (RTE) and ready to cook (RTC) food products have changed the traditional concept of spending long exhausting hours in the kitchen making curry and gravy dishes, batter, paranthas and rice.

Priced to target middle class population

RTE & RTC Food

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Packaged Fruits and VegetablesNewest Challenge for the Packaging Industry

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PE Extruded nets will be used to pack

– Onions

– Potatoes

– Garlic & Ginger

– Hard fruits like Ber

Rachel Bags will help Retail Businesses to pack 25- 50 Kg produce at farms

PE Extruded Nets and Rachel Bags

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Pre- weighed beans, peas, carrots, broccoli, etc. automatically packed on horizontal packaging machines in clear PE pre-formed bags will become popular with growth in organized retail business.

Stretch- Cling films will find wider applications when large fruits and vegetables like cabbage, cauliflower, gourd, melons, etc. are individually wrapped for enhanced shelf life.

Packaged Fruits & Vegetables

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PP Thermoformed Trays / Stretch Cling Wrap

Thermoformed PP Trays to hold 4-6 large fruits with Stretch Cling Wrapped films for good visibility and shelf life.

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IQF for Frozen Fruits & Vegetables

Laminates are used to pack fresh / cut vegetables and fruits.

Moisture is drawn and then individually quick frozen to be stored at 180C or below.

These offer a clear view and extended shelf life.

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Dried Fruits & Vegetables

Dried fruits provide great value addition and very popular in Turkey, Asia and US as a snack.

Widely marketed as snack and food supplement.

• Mangoes

• Strawberries

• Apples

• Kiwi

• Berries

• Figs

• Mushrooms

• Plums

• BroccoliFruits are marginally processed with sugar, salt etc for added flavours.

Dried Mangoes

Dried Strawberries

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Drying fresh F&V to increase shelf life

Simplest method of preservation requiring little outlay of special equipment and expense. Adds value at low cost.

Preserves food by removing moisture from food to a point where growth of micro-organisms cannot be supported.

Fruits and vegetables selected for drying should be fresh and ripe to maintain quality and preserve nutrients.

Methods for Drying :

• Dehydrators

• Oven Drying

• Sun Drying Dried Apple Rings

Dried Broccoli

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Drying fresh F&V to increase shelf life

Pretreatment before Drying :

Fruits :

• Require some sort of pretreatment to prevent browning and loss of vitamin C.

• Sulfuring, Blanching, Sulfite Dip, Ascorbic Acid solutions are some of the methods for pretreatment.

Vegetables :

• Water blanching and steam blanching are two methods for pretreatment of vegetables.

• Water blanching results in greater loss of nutrients but takes lesser time than steam blanching.

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Drying fresh F&V to increase shelf life

PackagingThe packaging material must provide a good barrier between the fruit and environment.

Packaging centres to use barrier pre- formed bags on Horizontal Packaging Machines.

Retail outlets to be equipped with inexpensive vacuum packing machines to pack the desired quantity in barrier 5- Layer PE films on the spot.

Use of dried F&V

Dried fruit may be eaten as it is or rehyderated for eating

Dried vegetables are generally added to soups or stews and not used alone as a side dish.

Rehyderation generally takes 11/2- 2 hours in enough water to cover the product.

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Frozen Food

Frozen ready meals, includes frozen meat, poultry and fast food.These products require excellent barrier with EVOH, PVDC, etc.

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Summary

The stage is set for consumers to buy all their staples in well packed convenient packs.

Ready availability of hygienically handled and packed fresh F & V.

Easy availability of frozen F & V.

Range of dried F & V, marginally processed as a healthy snack.

Vacuum packaging for Bulk handling and extended shelf life.

VAST Choices to spoil Consumers by Retail Chains

Thank You!

RelianceIndustries Limited

www.ril.com