Snapshot

Packaging is among the high growth industries in India and developing @ 25% per annum

  • The fastest growing packaging segments are laminates and flexible packaging, especially PET and woven sacks.
  • India’s paper and paperboards market to grow at 6-7% pa. The per capita consumption of paper in India is 15 kgs
  • India is the export market leader in packaging materials sub-segments such as Biaxially-oriented Polyethylene Terephthalate (BOPET) and Flexible Intermediate Bulk Container (FIBC) film
  • The India Packaging Market was valued at $50.5 bn in 2019, and it is expected to reach $204.81 bn by 2025, registering a CAGR of 26.7% during the period of 2020-2025.
  • Major export markets for Indian production of PE bags is US (~50% share of all exports), UK and all Western European countries

100% FDI is permitted under the automatic route in Paper & Packaging industries in India.

For further details, please refer FDI Policy

  • %

    Rigid plastics packaging sector is expected to grow at a CAGR of around

  • % pa

    India’s paper and paperboards market to grow

  • %

    India’s share in worlds paper production

The Indian Paper Industry accounts for 2 % of the world’s production of paper and paperboard.

India paper and pulp domestic market size of $10.6 Bn.

The market for rigid plastic packaging in India stood at about $ 7.70 bn in FY 2018. 

Industry Scenario

Packaging is among the high growth industries in India and developing @ 25% per annum 

Strong favorable demographics, increasing disposable income levels, rising consumer awareness and demand for processed food have been prime factors behind the surge in demand of plastic packaging.

India Specific Key Facts for Paper and Packaging: 

  • The India Paper and Paperboard Packaging Market was valued at $ 10.77 Bn in 2021 and is expected to reach $ 15.69 bn by 2027, registering a CAGR of 6.63% during the forecast period of 2022-2027.
  • Polymer utilization for this industry has been higher than the global average signifying a increasing share of plastic packaging in the country
  • India has been growing as a net exporter of packaging material and accounts for ~2% of the global packaging exports
  • 70% paper and board is contributed by non-wood sectors of the Industry.
  • Focus States of Paper: Andhra Pradesh, Karnataka, Maharashtra, and Gujarat

Current per capita consumption of Polymers in India is approximately 9.7 kg vis-à-vis global average of 28 kg, Singapore’s 43kg, China’s 45kg, Thailand’s 50kg, Japan’s 56kg, Malaysia’s 58kg and Taiwan’s 67kg. This is an indication of substantial un-tapped potential in our country.

Mergers & Acquisitions transactions in the sector are on the rise signaling the interest of institutional investors in the sector

GROWTH DRIVERS

  • Demand-side drivers

    The global pharmaceutical packaging market has been predicted to double to $149 bn in a decade, with India one of the markets currently producing a large quantity of plastic pharmaceutical packaging. Online retail packaging market in India is expected to grow 3x with major demand for flexible packaging, bubble wraps and corrugated boxes Growth in FMCG segments like packaged food and beverages, personal care products etc will trickle down as demand for packaging products

  • Supply-side drivers

    Reduction in packaging materials to reduce transportation costs – thinner, stronger design, lighter, simpler materials. Smart packaging – rapid print, aligned with real-time campaigns and offers; more use of RFID technology for electronic tagging, tracking of stock, as cost of RFID tags falls. Biodegradeable packaging – e.g., plastics made from starch, more use of cardboard. Aseptic packaging - Aseptic packaging deploy ultra-high temperature (UHT) films to enhance the shelf-life of juice and other beverage bottles, tetra packages

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