The Indian packaging industry, with a turnover of USD 24.6 billion and a growth rate of 13% to 15% annually, is expected to reach USD 32 billion by 2020. Packaging has an annual global turnover of about USD 550 billion, and India’s share is about USD 16.5 billion per annum.
The growth of the Indian packaging industry is heavily influenced by changing demographics such as growing urbanization and the rising proportion of middle class consumers. These changes drive the need for new packaging formats, such as different sizes, materials, and strength.
The industry constitutes about 4 per cent of the global market. The per capita packaging consumption in India is quite low at 8.7 kg compared with countries like Germany and Taiwan where it is 42 kg and 19 kg, respectively. As the requirement for packaging is rising across sectors with traditional businesses preferring to package products, and the retail and e-commerce growing rapidly, the sector is growing at a robust pace. The industry certainly presents potential growth opportunities for new entrepreneurs, and small and medium enterprises.
Demand for flexible packaging in the Indian market, estimated at USD 5.6 billion in 2017, is expected to grow at nearly 10 percent a year over the next five years. The flexible packaging supply chain is also benefitting from the concerted efforts of the Ministry of Food Processing Industries (MoFPI) in providing financial support for the construction of Food Mega Parks and improved cold store facilities. Indian-made flexible packaging machines, which come with all innovative technologies that any top-end European or Western players provide, will definitely empower the Indian converters and packaging solution providers to deliver same efficiency and productivity with new standard in cost effectiveness.
India is a growing market for plastics and consumes about 12.8 million metric tonnes (MMT) of plastics annually against global consumption of 285 MMT per year. The plastics and polymer consumption is growing at an average rate of 10 percent. In terms of packaging material, Glass and Rigid Plastics are among the major share gainers, with share growth of 0.7% and 0.6% respectively.
The Rigid Metal packaging is growing at the highest CAGR of 11.5%, driven by the rise in packaged and canned food sales, aerosol products, and the popularity of metal cans within the beer, cider, and carbonated drinks industries.
Glass packaging in India is also witnessing healthy growth, driven by rising demand in the soft drinks, alcoholic beverages, and food industries.
Paper packaging market, paperboard is also showing the optimistic growth rate of 7.5%.
The global printing industry is forecast to reach USD 980 billion by 2018, driven by growth in packaging and labels. Package Printing is all set to make up to 43% of the Indian Print Industry.
In the backdrop of optimistic figures and rising potential, PackPlus, the premier packaging exhibition, will bring together the big and small players from the industry to present and promote innovative products, solutions & services.