India’s economy is ruled by the packaging industry. It is the fifth-largest sector in India. We can describe packaging as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end-use. It is also a science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Most Plastics Packaging companies recycle waste plastic for re-used in their facilities and even offer alternatives.
We expect the Packaging Industry in India to register a CAGR of approximately 26.7% during the period (2021-2026). According to Care Ratings, over 49% of the paper produced in the country is used for packaging. According to 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.
There are many leading Packaging Companies in India. Multiple companies produce high-quality-folding cartons and work with customers across different industry segments. According to market intelligence, such companies combine their technical expertise with market insights to deliver customized solutions that exceed customer expectations. They engage with brand owners early in the development process to understand their specific needs, and partner with them to create packs that stand out on the shelves and shape consumer experiences.
Multiple Packaging Industry in India
Most of the packaging companies in India focus on manufacturing a diversified and high-quality range of Corrugated Boxes, Duplex Corrugated Box, Carton Box, Packaging Boxes and Kraft Box. The different methods of packaging in the market are as follows;
Anti-corrosive Packaging
Anti-corrosive packaging is used to protect goods from external humidity. This system functions as a thermal insulator, preventing increases in the air temperature inside the packaging and condensation of humidity.
Pharma Packaging
The major role of pharmaceutical packaging is to provide life-saving drugs, surgical devices, blood and blood products, nutraceuticals, powders, liquid and dosage forms, and solid and semisolid dosage forms.
Plastic Packaging
Plastics Packaging is used for packaging a variety of items like fragile or non-perishable products.
Flexible Packaging
Flexible packaging in India includes molding the packages into a variety of shapes and preserving the flavor. Flexible packaging can be made with flexible materials that can be packed, sealed, and keep its contents fresh.
Growth forecast
India has emerged as the market leader in quite a few sub-segments of packaging, such as the Flexible Intermediate Bulk Container (FIBC) and Biaxially oriented Polyethylene Terephthalate (BOPET) films.
Besides this, India sees growth & potential in consumer packaged goods.
The market has been growing because of solid demand from the food and pharma industries.
As a result, key factors drove the growth, such as rising population, increased income levels, and changing lifestyles.
Also, the fast-moving consumer goods (FMCG) sector represents the largest opportunity for flexible packaging.
India has a good export market.
Demand for industrial, luxury, and some B2B-transport packaging could decline.
The impact on packaging players will depend on their portfolios and exposures to different regions, end uses for packaging and substrates
Industrial, bulk, and transportation packaging.
Demand for this type of packaging is closely linked to the trend in GDP and the level of industrial activity, so the sharp decline related to COVID-19 leads to a reduction in packaging demand. However, some of this is being offset by industrial customers stockpiling purchases of intermediate bulk containers and drums, which causes a temporary spike in demand. At the same time, several segments—such as packaging for the food and pharmaceutical industries—continue to see robust demand. High growth in demand for corrugated packaging for e-commerce and grocery deliveries is also offsetting some demand lost elsewhere with industrial customers.
Consumer packaging.
Packaged food is the fastest-growing segment in the Indian packaging industry. Demand is likely to shift drastically in the food area as the pandemic shuts down restaurants and food-service outlets. Consumers will thus continue to move to grocery purchases, for which packaging demand will rise. Consumers’ wishes to stockpile and their panic purchases of food, beverages, and home-care necessities have stressed this trend. However, the food delivery and services market is fostering further growth in the country, with players, like Big Basket, Grofers, Zomato, Swiggy, Scootsy, registering a rapid increase in sales. But demand for nonfood and premium-good packaging is being hit as stores are required to close and as consumers cut back on their spending. It is expected to fuel the demand for plastic packaging, as it ensures food quality, safety, and long shelf life.
Healthcare packaging.
Demand will rise across different healthcare packaging types and related substrates, including flexible blister foils, pumps, closures, and rigid plastics. Similarly, demand will rise for packaging used in dietary supplements, such as vitamins, and for essential supplies, such as allergy medication, that consumers will need in a lockdown situation.
Future of packaging industry in India
To further maximize the potential of the packaging sector in India, the government has been continuously consulting 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. The packaging industry in India was valued at USD 75.95 billion in 2019. It is expected to reach USD 103.32 billion by 2025.
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