Packaging Industry in India - Growth, Trends, and Forecast (2020 - 2025)

Packaging Industry in India - Growth, Trends, and Forecast (2020 - 2025)

The Indian packaging market was valued at USD 50.5 billion in 2019, and it is expected to reach USD 204.81 billion by 2025, registering a CAGR of 26.7% during the period of 20202025.

Owing to the rising population, increasing income levels, changing lifestyles, increased media penetration through the internet, television, and growing economy, the demand for packaging is growing. 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 pharmaceuticals enduser 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, growth of exports, and India’s rising ecommerce 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.
With the recent outbreak of COVID 19, the packaging manufacturers are facing supply chain disruption along with decreasing manufacturing at the site in many parts of the world. To ensure the smooth flow of supply chain, Global Food Safety Initiative (GFSI) certification programs are providing sixmonth certificate extensions by conducting a remote audit and risk assessment pertaining to COVID19 such that the company can approve a new supplier location without an onsite audit to meet the demand.

Key Market Trends

Food 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 ecofriendly packaging. Many popular brands, like Amul, Mother Dairy, Patanjali, and others, use UVprotected films, colorchanging films, and holographic films to reduce the chance of adulterating their products.
Packaged food is the fastestgrowing 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 Agrifood Canada, the sales of packaged food 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, the penetration of online retail 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, is manufacturing the first biodegradable spillproof meal tray to promote sustainability in the packaging ecosystem.
Standup 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 fragmented in nature, owing to the several players competing to improve their market share. With the rising demand for packaging applications, along with technological advancement across the Indian economy, many companies are increasing their market presence by expanding their business footprint across various enduser markets. Major players include WestRock India Pvt. Ltd, OJI India Packaging Pvt. Ltd, Deccan Cans & Printers Pvt. Ltd, among others.

February 2020 Parksons Packaging and HP India introduced a digital printing press for carton packaging. Parksons installed its first HP Indigo 30000 digital press, which is also the first B2format (20 x 30 inch) digital press in the Indian folding carton industry.
October 2019 Piramal Glass recently outlined its investment plans of EUR 30 million, in its premium perfume manufacturing unit. It may invest EUR 15 million into its Kosamba, India container glassmaking site, add three production lines, and meet the increased demand.

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1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Market Drivers
4.5 Market Restraints
4.6 Assessment of Impact of COVID-19 on the Industry
5 MARKET SEGMENTATION
5.1 End-user Vertical
5.1.1 Food
5.1.2 Beverage
5.1.3 Healthcare
5.1.4 Cosmetics, Personal Care, and Household Care
5.1.5 Industrial
5.2 Material Type
5.2.1 Plastic
5.2.1.1 Rigid Plastic Packaging
5.2.1.1.1 Bottles and Jars
5.2.1.1.2 Trays and Containers
5.2.1.1.3 Other Rigid Plastic Packaging Types
5.2.1.2 Flexible Plastic Packaging
5.2.1.2.1 Pouches
5.2.1.2.2 Bags
5.2.1.2.3 Films and Wraps
5.2.1.2.4 Other Flexible Plastic Packaging Types
5.2.2 Paper
5.2.2.1 Carton Boards
5.2.2.2 Containerboards and Linerboards
5.2.2.3 Other Types
5.2.3 Glass
5.2.4 Metal
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 WestRock India Pvt. Ltd
6.1.2 Kapco Packaging
6.1.3 OJI India Packaging Pvt. Ltd
6.1.4 Parksons Packaging Ltd
6.1.5 PR Packagings Ltd
6.1.6 Autofits Packaging Private Limited
6.1.7 Deccan Cans & Printers Pvt. Ltd
6.1.8 Hindustan Tin Works Ltd
6.1.9 Hi-Can Industries Pvt. Ltd
6.1.10 Hindusthan National Glass & Industries Ltd (HNGIL)
6.1.11 HSIL Group
6.1.12 Piramal Glass Private Limited
6.1.13 Borosil Glass Works
6.1.14 Haldyn Glass Limited (HGL) 
6.1.15 Uflex Ltd
6.1.16 TCPL Packaging Ltd
6.1.17 Pearl Polymers Ltd
6.1.18 Essel Propack Limited
6.1.19 Parekhplast India Limited
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS

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