22 Indian Packaging Industry Statistics, Trends & Analysis

With one of the world’s largest populations, India has a remarkably low level of packaging consumption. Despite being included as one of the top consumers of packaging materials, their per capita consumption rate is one of the lowest in the world. The average person in Germany consumes 10 times more packaging products than the average person in India.

As income levels rise in the country, there has been a greater desire to have food products which are packaged properly. The packaging industry provides protection for food, meets its specific needs, and provides a level of tampering resistance which preserves values along the distribution chain.

The industry is just beginning to embrace plastics. Some statistics resources still do not include plastics packaging within their reported revenue figures. Because the industry relies heavily on small-to-medium manufacturers, there is a high level of fragmentation within the industry, which has limited the amount of information being reported up through 2018.

Impressive Indian Packaging Industry Statistics

#1. The Indian packaging industry has a current estimated value of $14 billion. The annual rate of growth for the industry is more than 15%. (Indian Packaging Institute)

#2. Laminated products, which include tubes, tetra packs, and form-fill-seal pouches, is a segment within the industry that has been growing at a rate of 30% per year. (Indian Packaging Institute)

#3. There are currently about 700 packaging manufacturers located in India. 95% of them are classified as being a small- to medium-sized operation. (Indian Packaging Institute)

#4. Machinery imports to the Indian packaging industry total an average of $125 million per year. (Indian Packaging Institute)

#5. The average per capita domestic consumption rate in India for packaging materials is less than $15. The global average for consumption is almost $100. (Indian Packaging Institute)

#6. Paper is the fastest-growing segment within the Indian packaging industry, experiencing a demand of 6 million tons each year. About 40% of the paper which is consumed in India goes through the packaging industry. (Indian Packaging Institute)

#7. When plastics packaging is included within the Indian packaging industry figures, the industry has a total value of $32 billion. Almost 1 million people are directly employed because of the activities of this industry. (Federation of Indian Chambers of Commerce and Industry – FICCI)

#8. There are currently more than 10,000 firms currently working on plastics manufacturing within India. (FICCI)

#9. The Indian packaging industry currently provides about 4% of the total value available within the global packaging industry. (FICCI)

#10. Plastics comprise about 40% of the packaging produced in the Indian packaging industry today, combining flexible and rigid plastics into the same category. Cardboard products make up another 31% of the industry. (FICCI)

#11. One-third of the plastic products used by the packaging industry is composed of polyethylene. Another 29% of the products are polypropylene. 17% of the industry produces PET. (FICCI)

#12. Most of the technical components used by the Indian packaging industry are imported from Japan, Europe, or the United States. Imports of these components carry a 7.5% customs duty, which generates high levels of industry loss in research and development. (FICCI)

#13. Rigid packaging products dominate the industry right now, providing an 80% market share to the Indian packaging industry. (India Brand Equity Foundation)

#14. The flexible packaging industry in India is a segment valued at nearly $1 billion. It has been growing at an average rate of 20% since 2010. (India Brand Equity Foundation)

#15. Food-based products account for 38% of the consumption of flexible packaging for the industry. Chewing tobacco accounts for 32% of flexible packaging, while non-food items account for 30%. (India Brand Equity Foundation)

#16. Snacks, biscuits, food staples, and confectionery items all provide a respective 6% of the flexible packaging consumption experienced in India each year, accounting for 24% of food packaging needs. Tea products account for another 3% of industry packaging needs. (India Brand Equity Foundation)

#17. In 2007, the consumption of biodegradable plastics by the Indian packaging industry was 0.36 million tons. In 2020, the anticipated consumption of bio-based plastics is expected to reach 3.46 million tons. (India Brand Equity Foundation)

#18. Although rigid plastics have been replacing metals and glass within the packaging industry, glass bottles still account for 10% of consumer packaging. Metal cans still account for 7% of the industry. (Madras Consultancy Group)

#19. The manufacturing of caps and closures accounts for 4% of the Indian packaging industry. (Madras Consultancy Group)

#20. When it comes to international demand, India, along with Brazil, Russia, and China account for 30% of the global demand for packaging materials. The global consumer industry is valued at $500 billion if industrial end-markets are included with the revenue figures. (Ernst and Young)

#21. The greatest area of growth for the Indian packaging industry is within the food sector. The global packaging industry generates 51% of its revenues from food packaging needs, compared to the 38% of revenues generated within India. (Ernst and Young)

#22. 37% of the packaging machinery found within the Indian packaging industry produces beverage units. This is followed by frozen food units (22%), confectionary units (11%), and bakery units (10%). (InnoPack)

Indian Packaging Industry Trends and Analysis

The government of India is focused on increasing domestic consumption of packaging materials while reducing international influences on the industry. There is a “Made in India” campaign which is focused on improving the manufacturing centers already present in the country. Special Economic Zones, tax-friendly policies, and extended supports from other various sectors help the industry continue to see strong growth.

There is also strong growth in the pharmaceutical, food, and beverage industries in India. These industries are seeing growth rates of 15-25%, which then trickles down into the packaging industry for added growth and value as well.

India is also experiencing a growing trend in consumerism as a middle class is being established within the society. As income levels continue to improve, expect more demand from the packaging industry.

It would be a low-end estimate to expect the industry to grow at a CAGR of 8% over the next 10-year forecast period. On the high end of the estimate, the industry could experience a CAGR of more than 15%.