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Package in Java is a mechanism to encapsulate a group of classes, sub packages and interfaces. Packages are used for:
Preventing naming conflicts. For example there can be two classes with name Employee in two packages, college.staff.cse.Employee and college.staff.ee.Employee
Making searching/locating and usage of classes, interfaces, enumerations and annotations easier
Providing controlled access: protected and default have package level access control. A protected member is accessible by classes in the same package and its subclasses. A default member (without any access specifier) is accessible by classes in the same package only.
Packages can be considered as data encapsulation (or data-hiding).