For the packaging industries in Lahore, in which a significant portion of raw materials, spare parts and accessories are imported, this means an increase in production costs. In addition, Biotech Packages is characterized by a monopoly of raw material suppliers. Due to the fact that Pakistan joined the WTO, import duties on certain types of cardboard and polymers decreased, while import duties on cardboard packaging remained high.

Amid growing inflation, the burden of high credit debt, declining consumer lending, rising unemployment and low overall incomes, consumption slowed. In addition, a drop in oil prices is affecting the market, as the Pakistan economy is still heavily dependent on its natural resources. Due to the unpredictability of changes in the market, consumer fear of the future grows and forces them to spend even more caution and save money. In order to satisfy the needs of low-income groups, manufacturers generally stopped using packaging for those categories of goods where it is possible – for example, for vegetables, or reduced the weight and / or volume of packaging in an effort to keep prices low. In the current economic environment, more and more people are actively looking for cheaper or discounted products.

Advertising campaigns with slogans like “buy more – pay less” are popular, the demand for group packaging has increased. High-income individuals, whose share among the entire population of our country is small, but whose number and income have been steadily growing for many years, have an impact on the development of packaging solutions in the segment of premium and luxury goods. These consumers express themselves through well-known brands and take an active interest in packaging design. In this regard, innovative and unusual packaging solutions stimulate sales and thus increase the demand for new developments.

Glass packaging remains among the leading types of packaging for luxury food and beverages.  The continuous growth of large food retailers, supermarkets and similar distribution networks increases the demand for light, vibrant, informative and cheap packaging options – both from the owners of their own brands and other brand owners represented in these large retail enterprises. With attractive packaging, brand owners are trying to increase sales of their products. Attractive but inexpensive design is especially important for alcoholic beverages in the context of limited advertising in the media and constantly rising prices. So, on the one hand, packaging industries in Lahore participants are faced with rising prices for resources, including those caused by the devaluation of the ruble, and on the other hand, with moderate consumption and changing priorities both among retailers and consumers.

Growth in the number of environmental initiatives by the population and enterprises

Since the late 1990s, local authorities in various regions of our country have been trying to develop a solution for separate waste collection and inculcate citizens with a responsible attitude to the environment, but many of these measures have been unsuccessful. Recently, a number of examples have been observed when separate collection of waste was carried out at the initiative of private individuals. In addition to the initiatives of the local population, food, beverage and non-food producers also initiated programs for the responsible disposal and recycling of waste in Pakistan. The company “Health Water” began a project for the processing of PET in some cities. Since June 2014, the company has been picking up empty PET bottles for free from customers upon delivery of water.

The world’s largest manufacturers of goods are constantly launching new projects, which are related not only to the volume of production, but also to social responsibility. In June 2014, a group of volunteers from Nestlé conducted an environmental campaign as part of the company’s social responsibility program. Among the food manufacturers, the leader in terms of separate waste collection initiatives put forward. The company carries out waste collection and recycling projects and uses recycled packaging in its own production; and also participate in the development of waste management solutions at the regional level together with the country authorities. In 2013, the company began implementing the “Bring Your City Benefit” project, whose goal was to determine the optimal separate waste collection system. The responsibility of manufacturers and consumers of packaging in relation to the environment and ecology has become an integral part of the strategic plans of companies in Pakistan.