Indian packaging market to reach USD 204.81 billion by 2025

By 07 Nov 2020

A Reportlinker study has forecasted the Indian packaging industry to be one of the strongest growing sectors in the country.

According to the report, the Indian packaging market which was valued at USD 50.5 billion in 2019 is expected to reach USD 204.81 billion by 2025, registering a CAGR of 26.7% from 2020 to 2025.

This growth is primarily driven by the pharmaceuticals and food and beverage industries. And thus, huge investments in food processing, personal care, and pharmaceuticals end-user industries have created a scope for expansion in the packaging market. The growth of the packaged food industry is also expected to fuel the demand for plastics, as it ensures food quality, safety, and longer shelf life.

According to the Federation of Indian Chambers of Commerce and Industry, the expenditure on packaged foods is increasing due to the increase in per capita income, urbanisation, and an increase in the number of working women in the country. As per the Indian Institute of Packaging, the packaging consumption in India has increased to 200% in the past decade, rising from 4.3 to 8.6 kg per person per annum.

In addition, the rapid expansion of organised retail, the growth of exports and the booming eCommerce sector has also contributed to the market’s growth.

A recent data released by the Associated Chambers of Commerce and Industry of India said that the market size for organised packaged food is expected to reach Rs 780 million in 2020 from Rs 530 million in 2016. Meanwhile, according to Agriculture and Agri-food 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 such as Bigbasket, Grofers, Zomato, Swiggy and Scootsy registering a rapid increase in sales. As per a study conducted by the Ministry of corporate affairs (India), the revenue generated by Swiggy and Zomato in India in FY 2018 was Rs 4.42 billion and Rs 4.66 billion, respectively.

With the recent Covid-19 outbreak, the packaging manufacturers are facing supply chain disruption along with decreasing manufacturing capacities in many parts of the world. To ensure the smooth flow of supply chain, Global Food Safety Initiative certification programmes are providing six-month certificate extensions by conducting a remote audit and risk assessment on Covid-19 so that companies can get approval for a new supplier location without an on-site audit to meet the demand. These initiatives a further enabling packaging manufacturers to cater to the industry’s growth.

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 end-user markets, which has also been a driving factor behind the industry's growth.

Events

Sep
30

ProPak India 2021 NEW!

Sep 30 - 02 Oct 2021
Bombay Exhibition Center, Mumb...

Latest Poll

Everyone says be sustainable and go green, what does it really mean? One simple step you have undertaken on your shop floor