Packaging Industry in India - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Packaging Industry in India - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Packaging Industry in India is expected to register a CAGR of approximately 26.7% during the period (2021-2026). After the COVID-19 pandemic, most developed countries burned wastepaper or used it for landfills to avoid coronavirus spread. This has resulted in a huge shortage of raw materials for Indian paper mills. The manufacturers of Indian corrugated cardboard boxes are working to keep transport packaging flowing to makers of essential products, including packaging for food and other consumer products, medical and pharmaceutical products, tissue, and hygiene products.

Key Highlights

• Further, the demand for packaging is growing due to the rising population, increasing income levels, changing lifestyles, increased media penetration through the internet, television, and growing economy. Moreover, it is one of the strongest growing sectors in the country. According to Care Ratings, a prominent credit rating company in India, more than 49% of the paper produced in the country is used for packaging purposes.
• The rapid growth of the market is primarily driven by the pharmaceuticals and foods and beverages industries. Huge investments in the food processing, personal care, and pharmaceutical end-user industries are creating scope for expansion of the packaging market. According to recent data released by the Associated Chambers of Commerce and Industry of India, the market size for organized packaged food is expected to reach INR 780 million, in 2020, from INR 530 million, in 2016.
• The rise of the Indian middle class, the rapid expansion of organized retail, the growth of exports, and India’s rising e-commerce sector is further facilitating growth. According to the Indian Institute of Packaging (IIP), the packaging consumption in India has increased by 200% in the past decade, rising from 4.3 kg per person per annum (pppa) to 8.6 kg pppa.
• In order to further maximize the potential of the packaging sector in India, the government has been continuously consulting the industry experts. For instance, PIAI (Packaging Industry Association of India) has been asked to formulate policies and guidelines that are expected to augment India’s export potential in the international market.

Key Market TrendsFood Industry is Expected to Hold Largest Share in the Market

• The food packaging industry in India witnessed major innovations in terms of branding and packaging. For instance, iD Fresh has introduced Smart Sip Tender Coconut and iD Grated Coconut in innovative eco-friendly packaging. Many popular brands, like Amul, Mother Dairy, Patanjali, and others, use UV-protected films, color-changing films, and holographic films to reduce the chance of adulterating their products.
• Packaged food is the fastest-growing segment in the Indian packaging industry. It is expected to fuel the demand for plastic packaging, as it ensures food quality, safety, and long shelf life. According to the Federation of Indian Chambers of Commerce & Industry (FICCI), the expenditure on packaged foods is increasing (at inflection point) due to an increase in per capita income, urbanization, and an increase in the number of working women. According to Agriculture and Agri-food Canada, packaged food sales in India amounted to USD 76,284.2 million in 2018, and it is expected to register a CAGR of 18% during the forecast period.
• In India, the grocery market is a traditional retail industry, and therefore, online retail penetration is even lower. The expenditure on food and grocery accounts for 60% of the total expenditure on retail in India. However, the food delivery and services market is fostering further growth in the country, with players, like Bigbasket, Grofers, Zomato, Swiggy, Scootsy registering a rapid increase in sales. According to a study conducted by the Ministry of corporate affairs (India), the revenue generated by Swiggy and Zomato in India in FY 2018 was INR 4.42 billion and INR 4.66 billion, respectively.

Plastic Packaging to Have Significant Market Share

• The industries where plastic bottles and jars are mostly used in the country include food and beverage, cosmetics and personal care, and pharmaceutical industries. Polyethylene terephthalate (PET) and HDPE are the preferred materials for manufacturing bottles and jars in India. There are some applications where PVC is still being used to manufacture bottles, jars, and vials. However, due to the increasing environmental concerns, the manufacturers are trying to shift to PET and HDPE.
• Companies such as Bizongo are manufacturing the first biodegradable spill-proof meal tray to promote sustainability in the packaging ecosystem.
• Stand-up pouches and pillow pouches are some of the most common types of pouches used in the country. The increasing dairy consumption (especially milk, yogurt, and cream products) and the rising export of dairy products are driving the demand for pillow pouches.
• Plastic bags are among the most used plastic packaging solutions in the country. The growing supermarket chains and Kirana stores are some major factors driving the growth of plastic bags in the country.

Competitive Landscape

The Packaging Industry in India is moderately fragmented in nature, owing to the several players competing to improve their market share. With the rising demand for packaging applications and technological advancement across the Indian economy, many companies are increasing their market presence by expanding their business footprint across various end-user markets.

• July 2021 - Liquibox and WestRock team up to deliver the ultimate e-commerce solution for liquids. With the rise of e-commerce, many brands are experiencing leakages, costly returns, and brand reputation damage when trying to force traditional brick-and-mortar liquid packaging formats through the rigors of the online fulfillment supply chain. Liquibox and WestRock, two leaders in sustainable packaging, present a Ships In Own Container (SIOC) bag-in-box solution for Amazon that delights consumers, reduces waste, and ensures products arrive undamaged.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Jindal Poly Films Ltd.
Positive Packaging Industries Ltd.
Amcor Limited
Cosmo Films Limited
Essel Propack Limited
Tetra Pak International SA
Uflex Limited
Oji India Packaging Pvt Ltd.
Umax Packaging Ltd.
Polyplex Corporation Limited
Tri
wall Pak Private Limited
HNGIL: Hindusthan National Glass & Industries Limited
HSIL
Piramal Glass
La Opala RG
Borosil Glass Works
Haldyn Glass Limited (HGL) 
EMPIRE INDUSTRIES LTD
VITRUM GLASS
Asian Cans Pvt. Ltd.
Oriental Containers Limited
Zenith Tins Private Limited
Unique Closures
Western Cans Private Limited
Nipra Industries Pvt. Ltd.
Petrox Packaging (I) Pvt. Ltd.
Crown Closures Pvt. Ltd.
Deccan Cans & Printers Pvt. Ltd.
Hindustan Tin Works Ltd.
Hi
Can Industries Pvt. Ltd.
Kaira Can Company Limited

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