Packaging is Where The Profit Lies

It is now widely known that the pandemic has given a boost to the IT and pharmaceutical sectors. But what can be added to the story is that even the packaging sector has emerged a winner during this critical period. Benefitting from the pandemic, the sector has reported a strong upward trend. In this article, Geyatee Deshpande puts forth her opinion about the sector’s growth potential

- Geyatee Deshpande

Prominent sectors have all seen a boost in recent times with the markets and overall economic conditions posting quick recovery post the pandemic. But while sectors such as automotive, FMCG, chemicals, pharmaceuticals, realty, etc. always grab investors’ attention, the packaging sector is yet to catch the serious attention of investors. In fact, away from the spotlight, the true potential of the sector is yet to be realised by investors. As regular investor M Shah says: “Amongst investors, the packaging sector is not yet as popular as the other sectors in terms of parking funds but surely the sector is one of the strongest and fastest-growing in the domestic industry.”

Owing to the rising population, changes in lifestyle, increasing income levels, increase in demand for packaged goods, etc. the packaging sector has witnessed a tremendous boost. If we closely look at each and every product used in our daily essentials, it is the packaging which is primarily the most important. Further, special packaging is used for luxurious goods. Also, most people prefer to judge a product and the company’s attitude towards its consumers on the basis of the company’s efficient and attractive product packaging. The packaging industry in India is expected to register a CAGR of approximately 26.7 percent from 2021 to 2026.