Page 37 - Plastics News December 2020

India's packaging market to reach 422.3 billion units at 6.5% CAGR in 2024

Factors such as growing population, increasing most use of packaging in India and accounted for 56.5%
income, burgeoning middle class, strong growth in market share. It was followed by non-alcoholic
organized retail and surge in e-commerce are driving beverages and cosmetics & toiletries industries with
the demand says the report shares of 25.5% and 3.9%, respectively.
Changing the lifestyle of consumers along with rising Flexible packaging was the most consumed pack
demand for products that offer ease of convenience are material in Indian packaging and accounted for a market
the key attributes prompting the demand for portable share of 66.2% in 2019. It is expected to reach 67.3% by
packaging solutions. The packaging sector in India is 2024. Rigid plastics and paper & board were the other
expected to increase from 307.8 billion units in 2019 to popular pack materials.
422.3 billion units in 2024, at a compound annual growth The food industry was leading in terms of usage of
rate (CAGR) of 6.5% during 2019-2024, says GlobalData, flexible packaging, with a share of 68.1% in 2019. It was
a leading data and analytics company.
followed by non-alcoholic industry which accounted for
GlobalData's report, India Packaging Industry Trends and a share of 18.5% in the same year.
Opportunities, suggests that the sector is majorly driven Anchal concludes that Aesthetic appeal of products is
by growth in the paper & board packaging, which is increasingly becoming a key differentiating factor
forecast to register the fastest volume CAGR of 7.8%
among products. Rising urbanization and disposable
during 2019-2024. The category is followed by rigid incomes are translating into growing opportunities for
metal, which is expected to record a CAGR of 7.1% during ready-to-consume food and drinks as well as cosmetics &
the next five years.

Anchal Bisht, the Consumer Analyst at GlobalData, says, toiletries that address aspirational needs of the growing
“Several factors such as growing population, increasing middle-class population. Cut-throat competition,
income, burgeoning middle class, strong growth in however, is prompting manufacturers to focus on
organized retail and surge in e-commerce are driving the improving the visual appearance of their products and
demand for packaged products and are fueling the thereby, consumer attention, mainly via packaging, to
growth in the Indian packaging sector. Increasingly drive growth.
busier lifestyles are resulting in a surge in the demand (Courtesy: Manufacturing today India)
for products that offer convenience and portability, and
simultaneously those render enhanced shelf life.”
According to the report Food industry characterized the

DECEMBER 2020 37 Plastics News