PACKAGING SECTOR OVERVIEW
Statistics, news & updates: everything you need to know about the Packaging Industry in India
Summary/Snapshot
Packaging Industry
The global pharmaceutical packaging market is set to reach $149 billion within ten years, and India is currently a major producer of plastic pharmaceutical packaging.
The Indian online retail packaging market is expected to grow threefold, with a strong demand for flexible packaging, bubble wraps, and corrugated boxes, driven by the growth in FMCG segments like packaged food, beverages, and personal care products. The fastest-growing segments are laminates and flexible packaging, specifically PET and woven sacks.
In recent years, the packaging industry has become a crucial sector driving technology and innovation growth in India and adding value to various manufacturing sectors, including agriculture and FMCG.
The Indian packaging industry has gained recognition through its exports, such as flattened cans, printed sheets and components, crown cork, lug caps, plastic film laminates, craft paper, paperboard, and packaging machinery. Meanwhile, its imports include tinplate, coating and lining compounds, and other materials.
Growth Drivers
- Lower transportation costs, and packaging materials can be reduced through the use of thinner, stronger, lighter, and simpler materials.
- Smart packaging can also be implemented through the use of rapid printing technology that is aligned with real-time campaigns and offers.
- Additionally, more RFID technology can be utilized for electronic tagging and tracking of stock, as the cost of RFID tags decreases. Biodegradable packaging can be created through the use of materials such as starch-based plastics and cardboard.
- Aseptic packaging can also be employed, which uses ultra-high temperature (UHT) films to extend the shelf-life of juice and other beverage bottles and tetra packages.
- Moreover, the market has been growing due to solid demand from the food and pharma industries.
- Also, the fast-moving consumer goods (FMCG) sector represents the largest opportunity for flexible packaging. India has a good export market.
Sub industries
- Paper and Paper board
- Plastics
- Metal
- Glass
Opportunities
- Paper & Packaging Industry in India is expected to grow at a CAGR of 26.7% between 2022-2027.
- Factors such as rising population, increased income levels, changing lifestyles, and a growing economy are driving up packaging demand, especially in the pharmaceutical and food and beverage sectors.
- The packaging market in India is one of the fastest-growing industries in the country, with significant investments in the food processing, personal care, and pharmaceutical sectors driving its expansion.
- The emergence of the middle class, organised retail, export growth, and the e-commerce sector are all contributing to the packaging industry’s growth in India.
- The Indian Institute of Packaging estimates that packaging consumption in India has increased by 200% over the last decade, from 4.3 kg pppa to 8.6 kg pppa.
Challenges
Fluctuation in Raw Material Prices: The cost of raw materials, especially plastics and metals, is highly volatile, impacting the overall cost structure of packaging products.
Regulatory Changes: Dynamic changes in regulatory standards, particularly those related to environmental sustainability and safety, require constant adaptation by the industry.
Environmental Concerns: Growing awareness and concerns about the environmental impact of packaging materials, especially plastics, are pushing the industry towards more sustainable practices.
Recycling and Waste Management: Effective recycling of mixed plastic waste and plastic recovery remains limited. This challenge is compounded by inadequate infrastructure for waste management.
Technological Advancements: There is a lack of modern and advanced machinery in India, which hampers the industry’s ability to innovate and improve efficiency.
Consumer Demand: The rapid growth in consumer markets, particularly in processed food, personal care, and pharmaceuticals, demands constant innovation and adaptation in packaging solutions.
Infrastructure Issues: Inadequate road infrastructure affects the logistics and transportation of packaging materials, leading to higher costs and inefficiencies.
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Key Investment Opportunities
Focus on hygiene and healthcare driving Paper Industry Growth: With heightened importance of hygiene and healthcare products, paper-based materials, such as tissue paper and medical packaging, have seen increased demand, driving industry growth.
Increasing Demand for Sustainable packaging: • With growing environmental consciousness, there is a shift towards sustainable packaging solutions,leading to demand surge for paper-based packaging materials which are considered more ecofriendly compared to plastic or other non-biodegradable options.
Extensive usage of Plastic Sacks: Packaging sacks are increasingly being used for packaging products such as chemical, food, and fertilizers. Smart packaging and personalization are key trends driving innovation in the packaging
industry.
Recent Developments
- The India Paper and Paperboard Packaging Market was valued at USD 10.77 Bn in 2021 and is expected to reach USD 15.69 bn by 2027, registering a CAGR of 6.63% during the forecast period of 2022-2027.
- Polymer utilization for this industry has been higher than the global average signifying a increasing share of plastic packaging in the country.
- India has been growing as a net exporter of packaging material and accounts for ~2% of the global packaging exports.
- 70% paper and board is contributed by non-wood sectors of the Industry.
- Focus States of Paper: Andhra Pradesh, Karnataka, Maharashtra, and Gujarat
Key Players in India
National
- Essel Propack
- Uflex
- Balmer Lawrie
- Ess Dee
- Max India Ltd
- Ecoplast
- Oricon Ent
- Bajaj
- AMD Industries
- Jindal Poly Films Ltd.
- Flexituff
- Polyplex Corp.
- Xpro India
- Time Technoplast Ltd.
International
- 3M
- Tetra Pak
- Huhtamaki
- Perfect Pack S.r.l.
- Ecobliss
- Multivac
- Bosch
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