Food packaging market to grow upon tourism recovery and end of ready-to-eat meal overstock
Eka Global, leading longevity packaging producer, expects its total sales to grow by 10-15% at the end of this year as a result of an increasing demand and order from ready-to-eat meal and premium pet food producers and airlines. Its new production facility in Pune, India, has already begun commercial operations and will drive the company’s total production capacity to meet with the increasing market demand.
Mr. Chaiwat Nantiruj, Group CEO of Eka Global, explained that the global economy will continue to face many challenges. The global economy has not yet fully recovered. China continues to see slow economy. Geopolitical conflicts remain in many regions. Drought becomes more severe in many parts in the world. These challenges directly affect the transport sector as well as energy and product costs. The business sector, therefore, has to be cautious.
The food market, especially ready-to-eat food products and premium pet foods, which are the main customers of Eka Global, will have brighter future compared to the past year. These sectors are expected to grow by 10-15% this year as overstock is resolved. Customers in these sectors resume or even increase orders for longevity packaging.
“We have seen strong sign since Q3/2023 and the trend continues until now,” said Chaiwat. “Large food producers worldwide have started to expand production capacity, which is clearly seen from increasing orders we have received. With this positive trend, we believe Eka Global’s total sales will increase by 10-15% this year.”
Tourism industry recovery after COVID-19 also contributes to the company’s growth potential. Orders from airlines, especially low-cost airlines, have continuously increasing. Eka Global’s longevity packaging have played a significant role in helping airlines effectively managing their food stock onboard and costs.
While brighter trend is observed on demand side, Eka Global also enjoy more supply from its production plant in Pune, India, which began commercial operations in March 2024. The new facility also received high order.
India is a lucrative market thanks to its rapid growth compared to other markets. Local consumption has continuously increasing year on year due to growing population in India which has already outnumbered China.
“India is a rising star market this year. We have to closely monitor the market which has huge opportunity. India is least dependent on export but concentrates more on local consumption. The country’s GDP is forecasted to be higher than 5-7% this year. Our new plant in India will reap the benefits from local consumption expansion as well,” said Chaiwat.
