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Linking Market Perception to the Environment Concern: an Empirical Check in Secondary Packaging Industry

Environment pollution is a top concern to the human being across the countries in today’s world. Among various business fields, Packaging market is one of the fastest growing markets globally. Traditional packaging material contain toxic element and increasing number of plastic content so it is one of the major business concern for the packaging industry. This study will explore the arena of secondary packaging. Natural fiber in secondary packaging will lead the carbon neutral manufacturing or eco-friendly packaging.

Key words: Biodegradable, Secondary packaging, Natural fibre, Jute

Global packaging industry is now on the way to grasp a sustainable solution as the consumer awareness growing day by day. Natural fibre packaging started torevitalize quite interestingly as the fashion cycle turned back within few decade. Jute and cotton are valued natural fiber with unique characteristics and long standing end-use. In fact, for the slower growth of natural fibre packaging industry it is quite tough to meet the needs of rapidly expanding consumer demand. For which, manufacturers of synthetic substitutes are able to compete with a far larger potential capacity, budgets for promotion and lower prices. Although Consumers, particularly in the developed world, remain concerned about climate change and sustainability

International Packaging Market:
Global consumer packaging industry has been growing 3-5% per annum; around 29% in Asia pacific region (Australia, Japan, China are the major).The world market for consumer packaging in 2010 was valued at just over US$395billion(PIRA).It is also mentionable thatper capita packaging consumption around the world is $74 and this rate is increasing gradually. But in some specific region this is quite high e.g. North America $380, Europe $220 conversely low in Latin America $54, Asia $36.

02The Global consumer packaging market value reached approx. $456billion in 2015. Demand for natural, biodegradable bags will gradually increase as more and more chain shops around the world phase out the use of polythene bags and start using bio-friendly natural fiber bags instead. Soon, in European market the use of plastic bag will be banned. The global market of jute-made bags will be of 400 billion pieces Thus the potential market for jute shopping bags is enormous.

03Also, it has been estimated that annual world demand for shopping bags is more than 500 billion pieces. World famous chain store Wal-Mart, Leading food retailers Tesco, the Co-operative Group, Sainsbury’s, Morrison’s and the John Lewis-Waitrose partnership are expanding grocery convenience formats. In the UK alone, the grocery market was worth £150.8 billion in 2010, an increase of 3.1 percent from 2009.In 2014, Chinese grocery market crossed the worth about $1.046 trillion, compared to a contemporary US market value of $1.024 trillion. Thailand, Algeria, Denmark, Saudi Arab, Sudan can be the potential market (IGD)
Jute goods manufacturers in Bangladesh export around 100,000 shopping bags a month on average to different countries. They mentioned that there is scope for more shipments over the coming years as some European countries are set to ban polythene bags. So far, demand has well exceeded estimates. (The Daily star’2009).

Customer Characteristics:
05These days’ people are quite conscious about the environment. So they want to use environment friendly shopping bags. Moreover, with the growth of population the numbers of consumers of different shops/outlets/superstores are increasing. So the demand for shopping bag has got a new dimension. Finally all the renowned shops want to deliver their product in a nice, useful and standard shopping bag that also bears the image of the particular shop. So the current trend looks very promoting.There are several factors that govern the impulsive behavior of the customers.

04Customer Segmentation:
However we do have market segmentation according to the volume of purchase by the customers. That segmentation as follows-
♦ Master Consumer
♦ Elite Customer
♦ General Customer

Customer’s Motivation:
The customers will be motivated by some intrinsic factors:-
♦ Attractive price
♦ Unbeatable Idea
♦ Supreme quality
♦ Excellent Service
♦ Motto to contribute to the society
♦ Age

Bangladesh Perspective- Packaging Industry:
Packaging sector plays an important role for the development of industry and export sector as well as local consumption. Now it has become the integral part of human necessities. During eighties only a few packaging industries were set up to meet up the requirements of pharmaceuticals. But in early eighties, when RMG sector started their export; its demands were increased tremendously. To keep pace with the RMG sector and other export-oriented sector, packaging sector is going up by leaps and bounds to cater to the needs. Now all the export oriented sectors like frozen foods, handicrafts, pharmaceuticals, ceramics, and flowers etc. are met up by the local packaging industries.

Apart from the export oriented sectors there are few hundreds of packaging industry to meet up the local industries like foods and beverages, cosmetics and other consumer goods. Because of tremendous demands of consumer needs, demands for foil, flexible packaging, and poly packaging have also increased. Government has given priority for agro product export such as fruits, vegetable etc. We produce these items abundantly. But due to poor packaging we are going to lose our foreign exchange. Although there is scope for development of pack aging of this sector by introducing standard and eco-friendly devices. The printing sector has also been developed. Now there is further scope of development of this sector by using modern technology.

Here are several kinds of packaging industry is illustrated:

Paper Packaging: Paper packaging has now been playing a very important role in the growth of our export as well as the economic development of our country. More than one thousand paper related corrugated carton industries in Bangladesh. Out of which about five hundred are 100% export oriented. They manufacture Corrugated Carton, Back Board, Neck Board, Hang Tag, Size Tag, Price Tag, Bar Code, Photo Card, Photo Inlay, Size Sticker, Carton Sticker etc.

Glass Packaging: Glass packaging in Bangladesh shows as table growth. Glass packaging is being used in pharmaceutical industries, food industries including drinks and beverages etc. With the introduction of plastic made containers, use of glass made containers for packaging is reducing slowly.

Plastic Packaging: Use of plastic packaging has increased tremendously. Plastic packaging for packing food, Consumer items, pharmaceuticals, and drinking water etc. has increased in big volume. There is agro wing trend to use plastic made containers in place of containers made of metal and glass. This trend has also developed the printing processes.

Poly Packaging: There are more than 500 small and medium size industries producing Poly packaging items. Use of Poly packaging items has, in recent times, increased in big volume. Although Government has imposed ban on use of polythene shopping bags for protecting environment pollution yet demand of polythene packaging for packing export oriented industry like readymade garments, food items, consumables etc. has increased in big volume. Poly factories use PP film, LLDPE Film, BOPP, Aluminum Foil, Metalized film, Polyester Film etc.

Tetra, Aluminum Foil and Flexible Packaging: Use of tetra, aluminum foil and flexible packaging for packing items like; spices, chips, pickles daily necessaries, pharmaceuticals, drinks and beverage, ice cream, milk and pasteurized milk, juice, table salt, tea, sugar etc. has increased tremendously. This is because of the rapid growing population in urban areas.

Metal Packaging: Use of metal containers are limited for packaging chemicals, paints etc. which has also increased with the expanding demand of these items in local market.

Future Growth of Packaging Industries in Bangladesh:
To reduce environment pollution, it is a vital need to launch green technology. But lack of significant technological effort and required investment towards product development and diversification led to the demise of natural fiber packaging industry in our country. But now-a -days, due to eco-friendly nature & price hiking of petroleum products natural fibre packaging sector has recently started to revitalize.
Demand for packaging for export industries are increasing every year. Apart from that because of the rapid increase of local demand, packaging industries would continue to expand in the coming years too.Thereisamplescopein
packagingrawmaterialindustriessuchas; paper mills, petro chemicals
industries etc. Government has recently declared the agro based industries as a priority sector & declared some incentive for this sector. There is significant number of shopping mall in the cities, Agro shop, different consumer product retailer shop and chain store. They need secondary packaging material (various shopping bags, promotional bags) to market their product in local market. These types of shops can be the focused group of the natural fibre packaging producers. If the ‘mandatory use of jute-made packets for products law-2010’ can be implemented fully, demand of jute bag will raise about 1 billion pcs.

Already due to consumer demand, there is an increasing number of jute bag manufacturers, making it easier and more affordable to make the switch to eco-friendly shopping bags for both international and domestic customers. The future of the jute industry is particularly bright. Due to its eco-friendly and biodegradable characteristics, it is safe to say it will continue to keep its global presence. We can also safely assume that a thriving jute bag sector will help to employ another 1.5 million people, directly or indirectly, in Bangladesh.

Sustainable development is one of the most important issues in the world today. People can play an important role in the sustainable development in different ways regardless of their own position. Here we focused on finding out how plastic bags could be substituted by natural fibre bags and how it would contribute to the sustainable development.

1.PIRA -A research organization focused on packaging industry
2.IGD (a research organization dedicated to the development of the food andgrocery industry)
3.Barry J. Babina,*, Mitch Griffinb, James S. Bolesc “Buyer reactions to ethical beliefs in the retail environment” College of Business Administration, 306 JGH, University of Southern Mississippi, Hattiesburg, MS 39406-5091, USA
4.Bangladesh Jute Research Institute2011
and bdnews24.com 2011
5.Export Promotion Bureau (EPB)
National Jute Board 2011 and Bangladesh Economic news 2011
6.Bangladesh Jute Research Institute
7.Bangladesh Jute Mills Corporation (BJMC)

If anyone has any feedback or input regarding the published news, please contact: info@textiletoday.com.bd

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