Did you know that food packaging accounts for at least 33% of the total packaging industry! Gone are the days when restaurants could just wrap take-away food in a newspaper or brown paper and still be considered classy. Today, food packaging is a bigger business than the newspaper business, and it’s worth looking at how to get into it.
Food is great and people love good food. But even before we get to taste it, we decide whether or not it’s something we would like. How? By looking at the packaging it comes in. If the packing is not up to the mark, even if the product is good, it might not go over well in the market. You know what they say, we eat with our eyes first.
The food packaging industry is booming right now and there is so much that you can do in it! It is also not just the wrappers that the food comes in, there is more to this industry. That is what we are going to talk about in this article, the opportunities in this industry and how to start a food packaging business in India.
Food Packaging Business Ideas and Opportunities
Based on the supply chain, there are three types of packaging overall. Your business can be particular to one of these types or you could do multiple types of packaging.
- Primary: Primary packaging is the packaging in direct association with the product itself and is often referred to as a customer unit. It is the first layer that covers the finished food product. The packaging of this sort is mostly meant for the end-user or customer. The beautiful wrappers we see on chocolates, the container that holds a kg of rice together, etc, fall under this category.
- Secondary: Instead of primary packaging, this form of packaging is used to group a certain amount of items to create a stock-keeping unit, usually referred to as an SKU. By collecting them into a single package, it is easier to transport them to different sellers.
- Tertiary: This form of packaging is often also referred to as bulk or transit packaging and is used to group greater amounts of SKUs to move them from point A to point B. Products at this stage are treated as in the distribution stage. It makes the transport of goods easy and safe.
The pace of our lives is getting faster, and we are moving towards quicker solutions for everything including food. As a result, the demand for ready-made food or easy-to-consume food is increasing. This increases the demand for the food packaging industry.
While the opportunities are great, you might also want to watch out for the trends. As people are becoming more environmentally conscious, they have started seeking non-plastic packaging and many companies are trying to make the shift too. Maybe you can use this to your advantage.
Packaging for Small Businesses
Small businesses are growing more than ever before. Thanks to the internet and connectivity, it has become possible for people to start a home-based business and yet get the word around enough to make good sales. These at-home caters need packaging too. And as someone planning to step into the food packaging business, you can consider tapping into this opportunity.
Quick 4-Step Guide
Here is your quick 4-step guide to starting a food packaging business in India.
Step 1: Create a business plan
A business plan is where you outline the ideas and plan of the business. For your food packaging business plan, you have to consider the following things:
- What kind of packaging are you going to manufacture?
- How much are you going to invest in the business?
- Cost of the equipment
- Cost of the raw materials
- The market price for the product
- Who will be your buyers?
- Where will you set up your manufacturing unit?
- What is your business structure going to be? Whether a Private Limited Company, Public Limited Company, Partnership Corporation, Limited Liability Partnership (LLP), etc.
Based on the answers to these questions, you will prepare your business plan.
Step 2: Purchase Equipment
Once you have planned your business and got a place to start manufacturing, the next step is to purchase the necessary equipment. This will depend on the size of the manufacturing unit you are planning to set up. Make sure that you have enough prospective buyers before setting up a big manufacturing unit.
Step 3: Register Your Business
You can do this before or after setting up your manufacturing unit, but it is better to do it the earliest. Depending on what structure of the business you are choosing, you need to register it under the respective law. For example, if you are starting a partnership, you have to register your partnership.
This is required by law and it also comes with many benefits. Vakilsearch can help you with your Business Registration.
Step 4: FSSAI registration
As per the Food Safety and Standards Act, 2006 (FSS Act), all food providers must get the FSSAI registration done. That includes businesses operating in the food packaging sector too. You can register online through this link. Or our team at Vakilsearch can do it for you.
Under FSSAI, Major Registrations Include
This registration is required for all small businesses or start-ups which have an annual turnover of INR 12 lakh and above. If sales increase, it is possible to upgrade the basic registration to a state license.
State FSSAI license
The state license is for mid-sized companies with an annual turnover of INR 12 to 20 crores.
Central FSSAI license
Central licenses are typically for large enterprises with an annual turnover of over INR 20 crores. This is also required for the supply, import, and export of food products to government offices for goods and services.
Following the registration, you must also keep in mind to follow the rules and regulations established by FSSAI: https://foscos.fssai.gov.in/
Once you are registered under FSSAI you can start running your business of food packaging.
- Know All About FSSAI Registration
- How to apply for FSSAI License Renewal?
- FSSAI Login In India
- FSSAI Application Status