India Plastic Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

India Plastic Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The India Plastic Packaging market was expected to register a CAGR of 2.5% during the forecast period. The growing preference for convenience and portability continues to be the key driver of rigid plastics in food packaging. The need for portability, comfort, and good tensile strength remain the major drivers for rigid plastics usage in the cosmetics & toiletries industry.

Key Highlights

• Owing to the increasing population, rising income levels, changing lifestyles, and growing economy, the demand for e-commerce packaging is increasing in India. According to the India Brand Equity Foundation data, the Indian e-commerce sector is predicted to expand to USD 200 billion by 2026. A surge in internet and smartphone usage has fueled most of the industry's growth.
• India is also taking all measures to ensure a complete ban on single-use plastic by 2022, as envisioned by Prime Minister Narendra Modi, according to Union Environment Minister Prakash Javadekar. In June 2021, the country launched the Plastic Hackathon 2021 campaign that focused on awareness of single-use plastics.
• Furthermore, the India Brand Equity Foundation reported that country exported plastics raw materials worth USD 280.38 million in March 2021, and the export from April 2020 to March 2021 reported USD 3.29 billion.
• In July 2021, Defense Research and Development Organization (DRDO), in collaboration with Acharya Nagarjuna University and Ecolastic Private Limited, introduced environmentally-friendly packaging products made from natural and plant-based food-grade materials to eliminate single-use plastic. These bags are sustainable, cost-effective, and ocean-safe alternatives to single-use plastics, unlike traditional polyethylene bags created from petrochemicals, which are hazardous to the environment and take years to degrade.
• Due to the COVID-19 outbreak, the demand for nutritional drinks and healthy food increased exponentially. The majority of these products are packaged with single-use plastic. The orders were so huge globally that the manufacturers and packaging companies in the field expanded their facilities, which most governments supported.

Key Market TrendsE-commerce is One of the Industry that is Driving the Market

• The plastic packaging growth in the e-commerce space in the region is expected to be affected by the recent regulation on the ban on single-use plastics, which is scheduled to be enforced anytime in the future once the discussion with all stakeholders gets concluded. For instance, Flipkart announced that it plans to eliminate single-use plastic in packaging, and it may use 100% recycled plastic in its supply chain by 2021.
• The Indian packaging sector is one of the fastest-growing segments in the country, owing to the e-commerce boom. Packaging consumption in India has surged 200 percent in the last decade, from 4.3 kilograms per person per annum (pppa) to 8.6 kg pppa, according to the Indian Institute of Packaging (IIP).
• The ASSOCHAM stated that India annually consumes 12.8 million metric tons of plastics. Moreover, consumers demand more sustainable products, and brands must imbibe this concept strongly in their business approach.
• Recycling has become a major part of cosmetics, skincare, and perfume companies. In February 2021, Dow Packaging and Specialty Plastics (P&SP) and Lucro Plastecycle, an Indian recycling firm, inked an agreement to develop and commercialize polyethylene (PE) film solutions made from post-consumer recycled (PCR) plastics in India. This deal delivers a closed-loop packaging solution to help India achieve a circular economy while also boosting the Asia Pacific region's total circularity portfolio.

Food is One of the Significant Factor for Market Growth

• The food segment is one of the largest users of plastics. The demand for rigid plastic packaging in the food industry is high, as it is increasingly replacing traditional materials, such as paperboard, metals, and glass, owing to beneficial properties, such as lightweight and reduced cost. ​
• The market for small-sized plastic containers is anticipated to witness growth, with the sales of dairy products, jams, etc. In recent years the sales of yogurt have seen a slump. Hence, to regain the demand, many manufacturers are launching new products.
• For Instance January 2022, Wipak has partnered with Arla Foods, Paulig, and VTT to test Thermocell, a cellulose and fatty acid-based plastic film, to create food packaging. The bio-based substance is constructed of renewable materials and can be used instead of oil or fossil-based plastic. The company has been assisting with the material's market launch by sharing its creative development knowledge in durable materials and testing and certifying Thermocell's compatibility with food applications.
• Brand owners are increasingly looking for packaging converters to design secondary packaging solutions that can prevent shipping-related damage. Nowadays, packaging airbags are used for beverages that are packaged in glass bottles (the most fragile items). Airpack provides this solution to various e-commerce companies.

Competitive Landscape

As the demand for plastic packaging has been increasing significantly in the Indian region, the market is mildly concentrated with the presence of major players like Amcor, Coveris Holding, Berry Global, Sealed Air Corporation, and Constantia Flexibles, among others.

• May 2022 - Sonoco advances sustainable, flexible packaging and expanded options for sustainable, flexible packaging, which include solutions focused on recyclability, composability, and the use of post-consumer recycled content.
• February 2022 - ExxonMobil has completed its sale of certified circular polymers to Berry. The circular polymers are developed using the company’s Exxtendrecycling technology, designed to help expand the range of recyclable plastic materials and maintain products’ performance over several recycling loops. Berry Global will use the polymers to produce containers for food-grade packaging.

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• The market estimate (ME) sheet in Excel format
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