India Flexible Packaging Market Analysis and Forecast (2018-2028)

India Flexible Packaging Market Analysis and Forecast (2018-2028)

Executive Summary

India Flexible Packaging Market is currently experiencing rapid growth, propelled by several factors including urbanization, changing lifestyles, heightened consumer awareness, and the burgeoning e-commerce sector. The market is characterized by the utilization of various flexible materials such as plastic films, aluminum foils, and paper to create diverse packaging materials and containers. Flexible packaging stands out for its convenience and cost-effectiveness, contributing significantly to its widespread adoption and sustained expansion within the Indian market.

Packaging is among the high growth industries in India and developed at the rate of 22-25% per annum in 2021. Currently the 5th largest sector of India's economy, the industry has reported steady growth over the past several years and shows high potential for much expansion, particularly in the export market. In the international market, packaging materials are increasingly being exported from India. India's exports of packaging materials increased from USD 844 million in 2018-19 to USD 1,119 million in 2021-2022. The US continues to be the top country for package exports, followed by the UK, the UAE, the Netherlands, and Germany.

The industry is also witnessing innovations in flexible packaging materials. Barrier films, smart packaging, and anti-counterfeiting features were some of the areas of innovation. One of the more “trendy” advancements to fall under the active packaging category involves edible and soluble films. Combined with the continual demand for environmentally friendly material and the ongoing trend of minimizing packaging materials, it is predicted that the demand for edible and water‐soluble films could increase over the next few years.

Many new companies have entered in the market of BOPP & BOPET last year. Eight new BOPET lines with a capacity of over 300KT annually and investments totaling more than INR 3,000 crores were put into service in the nation during the course of the previous 12 months of 2022 by businesses including Ester, Cosmo, U-flex, Chiripal, and others. Both local and international companies are active in the India Flexible Packaging Market. Local companies often customize their offerings to meet the specific needs of the Indian market, while international players bring advanced technology and quality standards.

Market Segmentation

By Packaging: The product packaging has two major categories – flexible packaging and rigid packaging. And all packaging types come under these broader categories. Notably, the market share of rigid packaging is higher than flexible packaging. The flexible packaging market in India is lately growing at a good rate. The main reason behind this is that product packaging is their first physical interaction with the product. And when consumers interact with the product through the packaging, they want it to be handy. Besides, flexible packaging is cost-efficient as well.

By Company Size: In India, MSME’s hold the major market share in Flexible packaging while there are only a few large companies. In India, there are reportedly more than 200 flex-pack (flexible packaging) converters. Most small businesses that manufacture overwraps, co-extrusion films, and polysacks have processing capacity of less than 250 tonnes per month.

By Material Type: Plastic Packaging has the largest share out of all the material, constituting 63% of the market's value followed by paper, glass, metal and others. Plastic & Paper packaging is replacing glass and metal, particularly retorted and hot-filled products, as substantial improvements are made to barrier properties of plastic films and particularly clear plastic films.

By End Users: India Flexible Packaging Market by Industries is dived into Food, Non-Alcoholic Beverages, Cosmetic & Toiletries and Other. The largest segment is held by Food segment. The consumption of packaged food and beverages in India is growing at an exponential rate. Factors such as the convenience of the available ready-to-eat food are driving the growth of the packaged food market in India.

Future Outlook

The flexible packaging industry in India is dynamic and continues to evolve to meet the changing needs and preferences of consumers and businesses. The India Flexible Packaging Market is anticipated to increase at a CAGR of 13.9% from 2023 to 2028.

Sustainability has become a prominent theme in the industry, leading to the exploration and adoption of eco-friendly and sustainable packaging materials. Innovation in barrier films, smart packaging, and anti-counterfeiting features has also been a focus.

In addition, the fast-moving consumer goods (FMCG) market in India is estimated to grow at a CAGR of more than 18% during the forecast period. Therefore, the growing retail sector in India will increase the demand for flexible packaging, thereby, driving the growth of the India flexible packaging market during the forecast period.

Scope of the Study

Makreo research has published a study on Flexible Packaging market titled, “India Flexible Packaging Market Future Outlook to 2028”. The study evaluates flexible packaging market demand and production facts with a detailed assessment of past and present market trends. This holistic approach enhances the overall analysis and makes the study a valuable resource for individuals or organizations interested in exploring the share of Flexible packaging, consumption statistics, demand of BOPP & BOPET, polymer pricing in India. The market has witnessed many shifts in the recent past that have impacted profit margins of the players but also accounted for the rise in demand. The report contains a good balance of macroeconomic and microeconomic analysis, both qualitative and quantitative. The competition has also been carefully examined in terms of significant M&A transactions that have occurred in the market and recent financial infusions.

The report examines the corrugated packaging market in terms of market revenue and further breakdown into market segmentation:

By Flexible

Rigid Packaging

By Company Size

Large Companies

MSME’s

By Material Type

Plastic

Paper

Glass

Metal

Others

By End User

Food

Non-Alcoholic Beverages

Cosmetic

Toiletries

Others

Companies Covered:

Cosmo Films (Cosmo First Limited)

Jindal Poly Films Limited

Polyplex Corporation Ltd

Ester Industries Limited

EPL Ltd.

Solos Polymer

TCPL Packaging Ltd.

Packone Solution LLP

Uflex Ltd.

Garware Hi-tech Films Limited.

Key Questions Answered

How the Indian economy has performed in the past and what is the future expected growth outlook?

At what rate India Flexible packaging market revenue grew in the past and what is the present state of the industry?

What are the major driving factors accounted for a push to the industry in the past?

What is the expected future of the India Flexible packaging market?

Who are the major players operating in the Flexible packaging market in India and how these players are contributing to the industry?

Which industry plays a dominant role in terms of generating maximum demand for Flexible packaging in India?

What is the average cost of the plastic polymer in India and what price trend has been followed?

What segment holds the major market share by film type?

What is India's present demand for BOPP and BOPET, and how quickly will it increase in the near future?

What are the strength, weakness, opportunities & threats in the flexible packaging market in India?