The Indian packaging industry was estimated at USD 24.6 billion in FY 2017 and is expected to grow at a CAGR of 13% to 15% over the next 3 years. Plastic packaging comprises 53% of the Indian packaging industry, while paper-based packaging has the second highest share of ~18%. Flexible plastic packaging was the fastest growing category in India, achieving a CAGR of 16.6 per cent in 2017.
In recent times this sector has seen several private equity investments. Although rigid packaging holds the major market share, trends have shown an increase in the market share of flexible as well as laminate packaging. This is one of the industries that is directly related to the output of the food processing and the pharmaceuticals industry, both being high growth industries themselves. As a result of the availability of inexpensive labour and a wide spectrum of resources, India is able to produce packaging material at prices much lower than its European and American counterparts making it one of the major export hubs. Continuous innovation and high growth in this sector have allowed for innovation in other sectors. This sector is expected to reach USD 73 billion by 2020.
India's per capita consumption of packaging material is ~4.3 kg which is comparatively low compared to neighbouring countries in the APAC (Asia Pacific) region.
- Rising consumerism and modern lifestyle have led to an increase in the demand for safe and hygienically packaged consumer goods.
- Growth in organized retail segment has led to an increase of better availability of goods across different product categories including FMCG products.
- The ability of India to manufacture packaging material at lower costs as compared to its counterparts.
- Growth in the number of transactions that take place through e-commerce websites.
- Perfect Pack S.R.L.
- Tetra Pak
- AMD Industries
- Balmer Lawrie
- Essel Propack
- Ess Dee
- India consumes 12.8 million metric tonnes of plastic compared to the global consumption of 285 million metric tonnes.
- There are about 30,000 processing units with 113,000 processing machines which have created a manufacturing capacity of 30 million metric tonnes.
- Indian packaging industry constitutes about 4% of the revenue of the global packaging industry.
- FMCG sector contributes to ~70-75% of total plastic packaging industry’s revenue in India.