Sourcing Your Beverage Cans and Bottle Products from the Indian Market

Sourcing from the Indian Market

According to a recent report, India is the second largest exporter of glass products globally with its greatest share of buyers in the US. Sourcing from the Indian Market has proven to be viable option for businesses. Steadily, this is turning into a trend as third-party manufacturing significantly helped cut down production costs.

The increasing popularity of carbonated drinks and beers has eventually skyrocketed the global demand for beverage cans. Also, recent studies express that many consumers prefer purchasing their drinks in glasses or cans instead of plastic bottles.

Here, you can learn about the potential suppliers and strategies that one can follow for better logistics workflow while Sourcing from the Indian Market.

Different Types of Can and Bottle Suppliers in India

Packaged food and beverage sellers have a preference for a particular sealing method and material for the cans.
The market primarily features the following can segments based on type:
● Aluminum cans
● Tin cans
● Metal cans
● Paper cans

If you classify them by size, all the above categories can be further subdivided, such as #300, #303, #2 ½, #2, and so forth. This coding system denotes the dimensions of specific cans containing edible products in a grocery store.
Additionally, it is crucial to consider a packaging material’s intended use to ensure its content’s optimal shelf life. Based on usage, the fast-growing beverage can manufacturers currently supply the following types of products:
● Cans for carbonated drinks / energy drinks
● Juice cans
● Cans for alcoholic beverages
● Cans for supplements or meal replacements

Similarly, bottle suppliers produce spirit bottles, soft drink bottles, and bottles to store stimulating drinks like tea and coffee. As there’s a significant shift among the audience that previously preferred PET bottles, the demand for the same has marginally dropped.
Apart from these demarcations, in case you have minutely studied the cans then as per the opening methods, these products can further be segmented into:
● Traditional cans
● Pull-tab cans

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The latter is more user-friendly as you do not need any opener to access their content.
Contrarily, you will notice your chosen bottle manufacturer offering either molded or blown glass bottles. An increasing popularity for blown glass bottles is evident in the upcoming years as these products are fully recyclable.

Finally, according to the distribution channel picked, we recognize glass bottle / can manufacturers as wholesalers, direct manufacturers, online marketplace players, and even retailers.
For convenience and to avoid the unwanted trial and error phase, you may opt for food and beverage consulting services in India from Tecnova Global. We conduct critical cost analysis so that your business gets a competitive edge.

Quality Standards and Compliance that Ensure High-quality Product Outsourcing

To boost domestic manufacturing, the Indian Government has initiated several compulsory quality norms for bottle and can manufacturers. These regulations were last updated in July 2023 when the Government strictly banned the trading of containers that do not bear the BIS (Bureau of Indian Standards) mark.
Thus, if you are associated with a supplier whose products do not have BIS certification then you should report them. It will cost them a penalty of approx USD 2,399.04 (Rs.2 Lakhs) (if that is the first offense reported). For subsequent allegations, the fine amount can increase up to approx USD 5999.4 (Rs.5 Lakhs). Plus, the alleged entity will be sentenced to imprisonment for at least 2 years.

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Now, as the QCOs are active, businesses from outside feel more secure about public health and safety while sourcing from the Indian market.
Apart from trusting the Indian Ministry of Commerce and Industry, to maintain product quality, you can:

• Closely monitor the efficiency of testing procedures, manufacturing methods, and working capacities
• Invest reasonably in auditing
• Review the facilities of the contractor at regular intervals

The Department for Promotion of Industry and Internal Trade (DPIIT) in India is consistently putting in efforts to establish robust quality control standards. Hence, you can be assured that protocols are being followed wherever necessary. So, the key lies in communicating the needs of your business in a transparent way and raising issues as and when needed.

Cost Analysis that Guarantees Competitive Advantage

Selecting the right bottle or packaging supplier can be a cumbersome process. Getting it right involves a lot of tasks like analyzing past records, assessing the business fundamentals, and performing precise cost analysis.
From a commercial perspective, many businesses consider cost analysis to be the best “first step” in shortlisting the contractor. It helps identify the potential risk factors that are apparently difficult to quantify.
When you hire food & beverage consulting services in India, the service provider easily adapts to your firm’s principles. To perform cost analysis, they execute these 4 fundamental steps:
Step 1: Clarify and document the needs that a company desires to fulfill
Step 2: Calculate the easily avoidable costs
Step 3: Evaluate the total cost of importing bottles / cans
Step 4: Subtract the actual costs from estimated in-house costs to determine the gross savings
Over the years, financial analysis has played a significant role in reducing the cost drain. Therefore, businesses no longer review it as a non-core activity.

Logistics and Supply Chain Considerations

Importers face some common challenges while trying to bring cans and bottles from outside. One of the biggest issues is the shortage of plastic resin that disrupts the packaging of shipped products. Also, trucking problems become a major cause of concern as beverages usually have a high turnover rate. For this reason, selecting suppliers and manufacturers who are agile at work is always advised.
Port facility congestion should be the next thing to cross your mind. When the venues are more crowded, theft chances arise, which often leads to supply chain disruptions.
Therefore, while sourcing from the Indian market, you need to develop a long-term plan and operate as per forecasting. Finally, it would help if you kept a close eye on the following factors:
● Whether the volume of perfect orders is gradually increasing or not
● If the pricing of the contractor is more demand-centric
● And lastly, whether the supplier is making noteworthy efforts toward making product improvements

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Future Trends and Opportunities for Sourcing from the Indian Market

By 2029, the metal can market in India is expected to grow by about 14% each year. We initially thought it would be even higher, but things have slowed down a bit due to the government enforcing stricter rules to prevent contamination.
Looking ahead, Indian manufacturers will likely keep up a steady supply, especially with more people moving to cities, which will boost production. However, we need to address recycling concerns. While cans made here can be recycled and last a long time, we’re still working on improving how we recycle them.
Despite a steady demand, there are some challenges to consider. It’s pretty expensive for food and drink companies to get into using aluminum cans and glass packaging. Plus, there are logistical issues and rules to follow that could slow things down.
But people are becoming more aware of sustainability and health, so we’re expecting more folks to use cans. Still, some might prefer other types of packaging, which could slow down our progress.

Bottom Line for Sourcing from the Indian Market

Glass jars and bottles are gradually clinking their way to a bigger market. As per the latest analysis, the glass packaging sector, worth an incredible 64.97 billion USD in 2023, is set to see some serious growth. Reports predict the figures to jump from 67.28 billion USD this year to a whopping 93.69 billion USD by 2032. That’s a steady climb of over 4% each year. It directly infers that customers love to see more of their favorite products coming in those classic, eco-friendly glass containers.

Besides beverages, modern-day consumers are more inclined towards canned foods because of convenience and affordability. Therefore, selling edibles through these types of packaging is highly rewarding. On this note, you may choose India as the manufacturers here are supervised under strict protocols. Also, while Sourcing from the Indian Market you can find a constant pricing policy that helps reduce demand-centric price shifts.

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Reference Links:

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