Packaging is used to cover or wrap a product to preserve its quality and extend the shelf life of its contents by reducing the risk of contamination. Packaging plays a very significant role in transportation, warehousing, logistics, and sales of products. Apart from providing convenience to customers, packaging also plays a major role in attracting customers to purchase the product.
It also controls the size and quantity of the content. It prevents the quality and shelf life of innumerable products ranging from milk and biscuits, to drugs and medicines, processed and semi-processed foods, fruits and vegetables, edible oil, electronic goods etc.
The packaging materials used are available in two forms: rigid packaging material and flexible packaging material. Rigid packaging material comprises rigid plastics, glass bottles, containers, and metals. Flexible packaging materials include bags and pouches, squeezable bottles, stand-up pouches, CD cases, and materials used in foam packaging.
India has the second largest GDP among emerging economies based on purchasing power parity (PPP). The country is the 4th largest economy in terms of purchasing power parity (PPP). The packaging industry in India is one of the fastest growing industries which have its influence on all industries, directly or indirectly.
Classification
Packaging can be classified in four ways
- By Shape (Form & Size) – Heavy (Wooden Pack, Container)
Medium (Carton Box, Barrel)
Light (Bottles, Small Cans)
- By Method (Way of Packaging) – Vacuum Packaging, Aseptic Packaging,
Blister Packaging etc.
- By Contents – Food Packaging, Cosmetics Packaging, Liquid Packaging etc.
- By Material – Rigid Packaging (Metal Box)
Semi Rigid Packaging (Plastic Bottle)
Flexible Packaging (Paper, Plastic, Film)
The India Packaging Market was valued at USD 50.5 billion in 2019, and it is expected to reach USD 204.81 billion by 2025, registering a CAGR of 26.7% during the period of 2020-2025.
KEY MARKET TRENDS
Food Industry is expected to hold largest share in the market
– The food packaging industry in India witnessed major innovations, in terms of branding and packaging. For instance, iD Fresh has introduced Smart Sip Tender Coconut and iD Grated Coconut, in an innovative eco-friendly packaging. Many popular brands, like Amul, Mother Dairy, Patanjali, and others, are using UV protected films, color-changing films, and holographic films to reduce the chance of adulteration of their products.
– Packaged food is the fastest-growing segment in the Indian packaging industry. It is expected to fuel the demand for plastic packaging, as it ensures food quality, safety, and long shelf life. According to the Federation of Indian Chambers of Commerce & Industry (FICCI), the expenditure on packaged foods is increasing (at inflection point), due to an increase in per capita income, urbanization, and an increase in the number of working women.
– According to Agriculture and Agri-food Canada, the sales of packaged food in India amounted to USD 76,284.2 million in 2018, and it is expected to register a CAGR of 18% during the forecast period.
– In India, the grocery market is a traditional retail industry, and therefore, the penetration of online retail is even lower. The expenditure on food and grocery accounts for 60% of the total expenditure on retail in India. However, the food delivery and services market is fostering further growth in the country, with players, like Bigbasket, Grofers, Zomato, Swiggy, Scootsy, registering a rapid increase in sales. According to a study conducted by the Ministry of corporate affairs (India), the revenue generated by Swiggy and Zomato in India in FY 2018 was INR 4.42 billion and INR 4.66 billion, respectively.