On the packaging sector’s opportunities and potential in developing countries
As many products exported to developed countries are already processed at point of origin, the demand
for these to be packaged in retail friendly form is on the rise and this is an opportunity for the developing
economies to take advantage of. Of the three subsectors of the packaging industry (manufacturing,
machinery and service), there appears greatest potential to develop package manufacturing in developing
countries, given the tendency to process nearer to the production source and the availability of paper and
paper board packaging materials. As to packaging machinery, creativity in coming up with locally designed
equipment suited to local needs and conditions will help propel packaging industry development. While
this strategy is in its infancy, developing countries will mainly have to rely on second-hand machines with
their lower cost offsetting the cost of maintenance. This is because of the prohibitive cost of brand new ones.
Developing the packaging service provision subsector, specifically pre-packing of food products for export,
and outsourcing the packaging of food products to specialized companies, will provide a much-needed boost
to the packaging industry in developing countries. They will not only lend affordability of packages and
packing but will likewise enhance handling and distribution efficiencies to exporters, specifically to SMEs.