India's Flexible Packaging Market Soars with a Projected 13.9% CAGR, Makreo Research Reports

According to Makreo Research, India flexible packaging market is expected to grow at a rate of 10.1%. A significant number of biaxial film production lines have increased their capacity from around 1.3 million tons in 2019 to approximately 2.6 million tons as of March 31, 2022. One of the industries in India experiencing the fastest growth is packaging, which is the fifth-largest industry by market size. The business is expanding at a rate of 22% to 25% annually, according to the Packaging Industry Association of India (PIAI).

Flexible packaging is primarily made of monolayer, multilayer, and laminate sheets of polymers, primarily PE, PP, PET, and PVC. Polyethylene makes up almost one-third of the plastics used in India's packaging industry, and polypropylene makes up 29% of the products. According to the Flexible Packaging Association, flexible packaging makes up more than 60% of the market and is mostly used for food. The need for flexible packaging is rising since it may provide answers to several packaging issues. IBEF estimates that with 70% of sales originating through retail, India's grocery and food sector is the sixth largest in the world. Additionally, food processing ranked sixth in terms of production, consumption, and export and accounted for 32% of India's overall food market. The need for flexible plastic packaging would increase as a result.

► Demand moving from Rigid to Flexible Packaging
The product packaging has two major categories - flexible packaging and rigid packaging. And all packaging types come under these broader categories. Notably, the market share of rigid packaging is higher than flexible packaging.
But today, many big companies are opting for flexible packaging for their products rather than rigid containers or packaging. Beauty creams and ketchup have made a shift from a plastic or glass bottle or tub to squeeze pouches. Similarly, jellies, honey, toothpaste, and many other such products are now packed in flexible packaging.

In India, there are reportedly more than 200 flex-pack (flexible packaging) converters. Most small businesses that manufacture overwraps, co-extrusion films, and polysacks have processing capacity of less than 250 tonnes per month. More than ten flex-pack converters process over 4,000 tpa, and they are competitive with major worldwide enterprises.

► Rising Per Capita Packaging Consumption
In India, per capita packaging consumption remains relatively low at 8.7 kg, especially when compared to countries like Germany and Taiwan, where it stands at 42 kg and 19 kg, respectively. Nevertheless, organized retail and the flourishing e-commerce sector are offering substantial potential for the future growth of the retailing industry, giving a significant boost to the plastic packaging sector.

► Key Facts of India Paper Packaging
■ Packaging is currently the 5th largest sector of the Indian economy.
■ India is a net exporter of packaging products and the largest exporter of sub-segments: biaxially-oriented polyethylene terephthalate (BOPET) & flexible intermediate bulk containers (FIBC).
■ 100% FDI is permitted under the automatic route in the paper and packaging industries in India.
■ The industry structure comprises more than 900 paper units, with an installed capacity of nearly 30.73 million metric tons.
■ As of March 2023, around 553 mills were operational, with a total operating capacity of around 25.61 million metric tons.

► Demand of BOPET & BOPP in Upcoming years
As the overall demand is expected to reach 940 KT (740 KT domestic demand plus 200 KT exports), whereas the capacity would be 1200 KT, BOPET films are expected to end up with 260 KT of overcapacity in FY2025. In FY2025, when the total demand would be 1075 KT (875 KT domestic demand + 200 KT exports) and the capacity would be 1300 KT, it is anticipated that BOPP films will finish up with 225 KT of overcapacity.

The largest application of thin BOPET films is flexible packaging, which accounts for 76% of the total thin film used. Flexible packaging plays a key role in source reduction based on the principle of 'use less packaging material in the first place.

► New Product Development and innovation Flexible Packaging Market
■ Metallized High Barrier Easy Tear Polyester (F-ETB-M) Film: This film allows for easy-to-tear package qualities from both directions while meeting the barrier needs of various pouches and packaging applications. The finest option for packing goods, biscuits, and various pharma and medical products is this metalized, easy-tear BOPET film because of its high oxygen barrier.
■ Transparent High Barrier Easy Tear Polyester (F-ETB) Film: This film is a cutting-edge packaging solution for products like dry food since these products demand an outstanding oxygen barrier to retain freshness and easy-to-tear packages for improved customer experience.
■ Usage of High-Barrier Plastic Packaging Materials: High-barrier films are frequently used in the flexible plastic packaging industry to provide the best food safety. Flexible packaging made with these high-barrier sheets replaces conventional packaging materials like metal, rigid plastic, and glass because of its light weight and flexibility. Recyclable high-barrier plastics, such as standup pouches, are favored due to the rising need for high-barrier packaging, particularly in the vacuum packaging sector because to its cost-effectiveness and efficiency.

► Positioning for a Dynamic Future
India's flexible packaging market is at the forefront of dynamic growth, fueled by shifting trends, rising per capita consumption, and innovative solutions. As the industry evolves and embraces technological advancements, it is well-positioned to meet the diverse packaging needs of a rapidly expanding retail landscape, both domestically and on the global stage. The India Flexible Packaging Market is anticipated to increase at a CAGR of 13.9% from 2023 to 2028 reaching USD 18.34 Billion by 2028.

► Scope of the Study
Makreo research has published study on Flexible Packaging market titled, "India Flexible Packaging Market Analysis and Forecast (2018-2028)". The study evaluates flexible packaging market demand and production facts with detailed assessment of past and present market trends. This holistic approach enhances the overall analysis and makes the study a valuable resource for individuals or organizations interested in exploring the share of Flexible packaging, consumption statistics, demand of BOPP & BOPET, and polymer pricing in India. Market has witnessed many shifts in recent past that has impacted profit margins of the players but also accounted for rise in demand. The report contains a good balance of macroeconomic and microeconomic analysis, both qualitative and quantitative. The competition has also been carefully examined in terms of significant M&A transactions that have occurred in the market and recent financial infusions.

► Period of Study
2018-2022 : Past and Present Scenario
2022: Base Year
2023-2028 : Future Outlook of the industry

► Market Assessment
The report examines the flexible packaging market in terms of market revenue and further breakdown into market

► Segmentation
by Flexible & Rigid Packaging
by Company Size (Large Companies & MSME's)
by Material Type (Plastic, Paper, Glass, Metal & Others)
by End User (Food, Non- Alcoholic Beverages, Cosmetic & Toiletries & Others)

► To Know More:
India Flexible Packaging Market Analysis and Forecast (2018-2028) - Segmentation by Raw Material, Type of Films, End User and Organization Type
https://www.makreo.com/report/india-flexible-packaging-market-analysis-and-forecast-2018-2028

Related Reports:
Asia Pacific Corrugated Packaging Market Analysis and Forecast (2018-2028)
https://www.makreo.com/report/asia-pacific-corrugated-packaging-market-analysis-forecast-2018-2028

India Corrugated Packaging Market Future Outlook to 2027
https://www.makreo.com/report/india-corrugated-packaging-market-report-future-outlook-to-2027

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Makreo is a Market research and consulting firm working closely with business conglomerates worldwide to help them in many aspects of driving their business growth and assist in making wise decisions with the help of our qualitative & quantitative market insights.

This release was published on openPR.