Valued at USD 31.7 billion in 2015, the Indian packaging industry was pegged to touch USD 72.6 billion by 2020, as per the Associated Chambers of Commerce and Industry of India. The spread of Coronavirus side-tracked the forecasts considerably. However, the impact of the pandemic has varied, largely dependant on the end-user industry. Even with the ongoing- pandemic, the industry has continued to steadily rise—though not at the same scale as pre- Covid times—with the emergence of online retail and e-commerce brand.
China, which is the leader in the packaging sector, lost its clients, and its economy is likely to decrease up to 50% during and after the pandemic. This is because all the companies who were relying on China for packing are now shifting their businesses to other second-world countries such as India. Following the pandemic, packaging companies will need to rebalance sustainability goals that incorporate heightened hygiene, normalize e-commerce, and take product cost into consideration.
Demand will rise sharply for packaging for groceries, healthcare products, and e-commerce transportation. At the same time, demand for industrial, luxury, and some B2B-transport packaging could decline. The impact of the pandemic will have a positive effect on performance because these new trends will highlight customers’ needs across the industry.