India's Flexible Packaging Market Experiences Remarkable Growth and Export Success

The flexible packaging industry in India has emerged as one of the high-growth sectors in the country, with annual growth rates reaching an astonishing 22-25% in 2021. As the 5th largest sector of India's economy, the packaging industry continues to exhibit steady growth and significant potential for further expansion, particularly in the export market. This press release delves into the factors behind this growth, the dominance of flexible packaging, the export success, and the government's initiatives to promote the sector.

► Remarkable Growth in India's Packaging Industry
The Indian packaging industry, which includes products such as flattened cans, laminates, and various components, has been on an impressive growth trajectory. It has shown remarkable annual growth rates, making it a key player in the country's economic landscape. In 2021, the industry grew at a rate of 22-25%, solidifying its position as a high-growth sector.

► The Rise of Flexible Packaging
Flexible packaging has been a major driver of growth in the Indian packaging industry. It currently holds a share of over 70% in the total packaging market. This shift is evident as many large companies have adopted flexible packaging for their products, replacing traditional rigid containers. A wide range of products, from beauty creams to ketchup, jellies, honey, toothpaste, and more, are now being packaged in flexible pouches. The food and beverage sector, in particular, plays a significant role in driving the growth of flexible packaging.

► Export Success of Indian Packaging Industry
The Indian packaging industry has made significant strides in the international market, with exports that encompass various products such as flattened cans, printed sheets, crown corks, lug caps, plastic film laminates, craft paper, paperboard, and packaging machinery. In contrast, imports mainly include tinplate, coating, and lining compounds.

The export of packaging materials from India has been on the rise. Between 2018-19 and 2021-2022, India's exports of packaging materials increased from USD 844 million to USD 1,119 million. The United States remains the top destination for Indian packaging exports, followed by the United Kingdom, the United Arab Emirates, the Netherlands, and Germany.

► Government's National Packaging Initiative
To further promote and facilitate the growth of the packaging sector, the Indian government launched the National Packaging Initiative. This initiative encompasses several measures, including:

■ Setting guidelines and requirements for packaging design and materials.
■ Encouraging bulk packaging to reduce waste.
■ Promoting centralized industrial activity by providing infrastructure like specialized logistics parks and packaging labs for design and testing.
■ Establishing material recovery facilities (MRFs) to reduce packaging waste.

► Innovation and Sustainability in Packaging
In a bid to foster innovation and sustainable alternatives in packaging, the Ministry of Environment, Forest, and Climate Change (MoEFCC) organized the India Plastic Challenge Hackathon in 2021. This event led to the development of eco-alternatives, including a rigid packaging material made from rice stubble and a flexible packaging film made from seaweed. These innovations have the potential to reduce the environmental impact of packaging materials.

► Paper Packaging Demand
While flexible packaging dominates the Indian market, the paper packaging industry also plays a crucial role. The paper business in India is diverse, comprising small, medium, and large paper mills with varying production capacities. The industry is experiencing both opportunities for expansion and challenges related to changing growth dynamics.

► Dominance of PET in Flexible Packaging
Within the flexible packaging industry, thin-PET films have emerged as a significant and rapidly expanding segment. These polyester films, often used in cable overwraps and electrical components, are less than 50 microns thick. Additionally, other types of polyester films, such as thick PET and BOPET, contribute to the industry's diversity.

► Polyethylene Production
India, traditionally a net importer of polyethylene, has transitioned to becoming a net exporter since early 2018. The growing demand for polyethylene has paved the way for domestic production, with major players like Reliance Industries Limited, ONGC Petro additions Limited, and GAIL Limited now contributing significantly to polyethylene production in India.

► Investments and Business Strategies
Several major packaging companies have recognized the potential of the Indian market and are actively investing in expanding their production capabilities. SIG Combibloc, a global player, has increased its investments in India with the opening of a bag-in-box plant in Palghar and the construction of an aseptic packaging facility in Ahmedabad. Hutahmaki India is focusing on sustainable mono-material flexible packaging, and B Packaging, an Indian-owned company, is enhancing its facilities to meet growing demand.

► Continued Growth Expected
The Indian flexible packaging market registered double-digit year-on-year growth in 2022, and it is anticipated to continue this growth trend in the near future. On average, a year-on-year growth rate of 10%-14% is expected, reflecting the industry's resilience and potential for further expansion.

► Makreo Research Study
Makreo Research has recently published a comprehensive study titled "Analysis and Forecast of India's Flexible Packaging Market (2018-2028)." This study provides a detailed analysis of the demand and production dynamics within the flexible packaging market. It covers historical and current market trends, consumption patterns, the demand for BOPP and BOPET, and polymer pricing in India. The study also explores macroeconomic and microeconomic factors, including qualitative and quantitative dimensions, and examines the competitive landscape with a focus on M&A transactions and recent financial investments within the market.

Conclusion
The Indian flexible packaging industry is not only experiencing remarkable growth but is also embracing sustainable and innovative solutions, making it a dynamic and exciting sector for both domestic and international players. With the government's initiatives and the industry's commitment to innovation and sustainability, the future of the Indian packaging sector appears promising.

► 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)

► Company's Mentioned
■ Cosmo Films
■ Jindal Poly Films Limited
■ Polyplex Corporation Ltd
■ Ester Industries Limited
■ EPL Ltd., Solos Polymer
■ TCPL Packaging Ltd.
■ Packone Solution LLP
■ Uflex Ltd.
■ Garware Hi-tech Films Limited

► Key Questions Answered
■ How Indian economy has performed in the past and what is the future expected growth outlook?
■ At what rate India Flexible packaging market revenue grew in the past and what is the present state of the industry?
■ What are the major driving factors accounted for a push to the industry in the past?
■ What is the expected future of the India Flexible packaging market?
■ Who are the major players operating in the Flexible packaging market and how these players are contributing to the industry?
■ Which industry plays a dominant role in terms of generating maximum demand for Flexible packaging in India?
■ What is the average cost of the plastic polymer in India and what price trend has been followed?
■ What segment hold the major market share by film type?
■ What is India's present demand for BOPP and BOPET, and how quickly will it increase in the near future?
■ What are the strength, weakness, opportunities & threats in the flexible packaging market?

To Know More:
India Flexible Packaging Market Analysis and Forecast (2018-2028)
https://www.makreo.com/report/india-flexible-packaging-market-analysis-and-forecast-2018-2028

Related Reports:
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.