The packaging industry in India has been growing consistently and is now worth more than USD 24.6 billion, but the growth potential is still huge as India’s consumption of packaging material is still very low in comparison to its Asia neighbors. According to the Economic Times, the packaging industry will be the fourth largest of the world within the next four to five years, with sales of USD 42.7 billion. The average annual growth rate has been 13-15%, according to Rajeev Ranjan, during the launch of INDIAPACK 2015 [i], but when calculated per capita is currently only 4.3 kilos, while other Asian countries like China and Taiwan manifest 6 kilos and 19 kilos per capita respectively.
Demographic trends support this with rapid urbanization, the growth of India’s high-spending middle class (expected to expand from 50 million to 583 million by 2025), rising incomes, a growing youth population and comprehensive modern retail concepts are the perfect fertilizers for a fast growing packaging industry. The potential amount of goods (from consumer products to industrial packed goods) still to be marketed in packaged condition is enormous – especially in packaging intensive industries like pharma, food, drinks, fast-moving consumer goods (FMCG) and retail.
Currently, the Indian retail market is ranked the 5th largest retail destination globally, and the second most attractive emerging market for retail investments. The market is currently worth USD 350 million and is expected to rise to USD 1.3 trillion by the end of 2020. Furthermore, foreign direct investment (FDI) in Multi Brand Retail will also encourage the packaging industry in the upcoming years.
Some of the major domestic equipment manufacturers supplying the market are Uflex Engineering Limited, (Noida), Signode India Ltd. (Hyderabad), Print Pack Machinery Ltd. (Faridabad), Eagle Manufacturing Co. (Mumbai), L & T Construction (Chennai). Numerous domestic firms have established joint ventures with foreign companies to produce a variety of packaging machinery. German companies are the lead suppliers of machinery for filling, closing, sealing and labelling bottles, cans and boxes and wrapping and aseptic packaging machinery. U.S. firms mainly export filtering/purifying, wrapping, aseptic packaging and form-fill-sealing machines and extruders. To read the latest news on the Packaging Industry in India click Packaging Newsletter.
To read the latest news on the Packaging Industry in India click Packaging Newsletter