Abhinav Kumar Singh



Vikram Sharma




The landscape of the Indian packaging industry is characterized by a fragmented composition, where unorganized participants hold a significant portion of the market share. Nevertheless, as awareness heightens, product quality improves, and cost advantages diminish, the trend is predicted to shift towards organized players.

Although India's per capita packaging consumption has risen to 8.6 kg, there remains ample room for growth, especially when compared to other developing nations such as Taiwan and Germany, where per capita consumption stands at approximately 19 kg and 42 kg respectively.

Anticipated growth in the Indian packaging industry is underpinned by several key factors:

  • Escalation of organized retail enterprises.
  • Expansion of smaller packaging formats driven by nuclear family dynamics and increased rural outreach.
  • Surge in demand for enhanced packaging attributed to the upsurge in Ecommerce activities.
  • Increasing adoption of packaged foods to extend the shelf life of food products.
  • Utilization of packaging as a strategic branding tool.
  • Heightened penetration of packaged food products facilitated by new applications in food retailing and higher disposable incomes.
  • Adoption of novel converting and packaging equipment, expanding the applications of poly films.

The burgeoning and progressively sophisticated middle class in India is propelling the need for a broader array of premium processed food items, predominantly packaged in flexible formats. Presently, merely 5% of food products in India reach consumers in prepackaged forms.

Other Demand Drivers for Packaging in India:

Urbanization: As urbanization continues to shape India's landscape, the demand for packaged products rises in tandem. Urban areas are characterized by faster lifestyles, increased disposable incomes, and changing consumer preferences. Packaged goods provide convenience and time-efficiency, aligning well with the urban demographic's requirements.

Increasing Health Consciousness post COVID Pandemic: The COVID-19 pandemic has significantly heightened health consciousness among Indian consumers. This has prompted a surge in demand for products that are perceived as healthier and safer. Packaging plays a crucial role in conveying product safety and hygiene, which aligns with the post pandemic health concerns of consumers.

Increasing Environmental Awareness: Growing environmental awareness is pushing consumers and businesses alike to adopt more sustainable practices, including eco-friendly packaging solutions. This demand for environmentally conscious packaging materials and practices reflects a broader societal shift towards reducing plastic waste, utilizing recyclable materials, and minimizing the carbon footprint associated with packaging.

Changing Food Habits and Increasing Personal Health Consciousness Amongst Indians: As dietary preferences evolve and more Indians prioritize personal health, there is a corresponding shift in the types of products demanded. Consumers are seeking foods that are fresher, minimally processed, and have clear nutritional information. Packaging plays a role in preserving the quality and nutritional value of these products.

Increase in Rural Consumption Leading to Growth in Retail Sector: Rural areas are becoming significant consumers of packaged goods due to increasing incomes and improved connectivity. This rise in rural consumption is driving the growth of the retail sector, including smaller local stores and e-commerce platforms. Packaging becomes crucial in ensuring that products reach these diverse rural markets in optimal condition.

Food Waste Reduction: Packaging contributes to extending the shelf life of food products and minimizing spoilage. With the emphasis on reducing food waste, effective packaging solutions help prevent premature deterioration of products, ensuring that they remain fresh for longer periods.

Digitalization: The digital transformation in India is reshaping how consumers interact with brands and make purchases. This shift towards digital platforms and e-commerce has led to changes in packaging requirements. Products need to be packaged in a way that they can be efficiently shipped, withstand handling during transportation, and provide a positive unboxing experience for online shoppers.