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India Metal Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

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  • 90 Pages
  • April 2023
  • Region: India
  • Mordor Intelligence
  • ID: 5239445
The India Metal Packaging Market is expected to register a CAGR of 6.52% over the forecast period. Increased urbanization is one of the significant reasons that are prompting companies to increase metal cans and container production capacity. Moreover, the penetration of organized retail is also compelling market players to ramp up their capacity.

Key Highlights

  • The government of India is also taking initiatives to lower the prices of raw materials and increase domestic availability. For instance, in May 2022, the Government of India waived customs duty on importing some raw materials, including ferronickel and coking coal, used by the steel industry, a development which will lower the cost for the domestic industry and reduce the prices. In addition, the duty on iron ore exports increased up to 50%, and on a few steel intermediaries to 15%. Developments like these that are undertaken by private and government organizations are drivers for metal packaging, such as metal cans and containers in India.
  • The change in customers' tastes and preferences in whitewashing their houses and painting their walls with different colors is propelling the demand for paints containers in a smaller size to reduce wastage and save cost. These paints come in small metal containers, providing easy handling and transportation. Additionally, the growing construction industry in India will propel the demand for paint and coating in the commercial and residential sectors. For instance, according to the Ministry of Statistics and Programme Implementation (MoSPI), India's construction industry accounted for INR 3.38 trillion in the second quarter of 2022 compared to INR 2.67 trillion in the first quarter of 2022. All this is expected to support the demand for metal cans in the forecast timeframe.
  • The closed-loop solutions will play an important role in metal packaging in India as the demand for metal by the packaging industry is growing. The supply becomes less due to the fall of metal production with the availability of raw materials for recycling. Furthermore, it will help packaging manufacturers overcome the shortage of raw materials. Adopting closed-loop solutions will create the demand for recycling infrastructure in the country, resulting in growth in the investment for recycling expansion; otherwise, it becomes difficult for existing recycling manufacturers with limited capacity.
  • Manufacturers focus on sourcing raw materials locally to support the local communities and improve profit margins. In addition, these companies invest in R&D facilities to ensure that their product innovations align with consumer demands and ensure cost-effectiveness across the entire supply chain.​ However, they also import raw materials from the countries such as China, where they find affordable raw materials. For instance, though many metals can be manufactured in India, the government heavily imports metals and tin plates because of the lower cost compared to domestically available raw materials.
  • The demand for can-packed products, especially food and beverage products, is expected to rise sharply due to the increasing emphasis on recycling and sustainable solutions. India has a very low can consumption compared to other countries. According to Ball Beverage Packaging, per capita can consumption in India is approximately one per annum, while it is nearly 40 in China and about 70 in Vietnam. Consumer behavior and safety concerns in the wake of the COVID-19 pandemic were fueling the demand for aluminum cans in India.

India Metal Packaging Market Trends

Cans are Expected to Hold Significant Share

  • The metal cans industry in India is coming up with some interesting and captivating packaging concepts. However, the key component is the sustainability and recyclability of the packaging material. There are contemplations of a major role of metal packaging, including metal cans and containers, in the future, as it is manufactured out of sustainable material - tinplate or tin-free steel, and follows the principles of reduce-reuse-recycle.
  • Increased urbanization is one of the major reasons that are prompting companies to increase metal cans and container production capacity. Moreover, the penetration of organized retail is also compelling market players to ramp up their capacity. To cater to the growing demand for metal cans and containers in the country, companies such as Ball Corporation are expanding their packaging offering to various other segments such as wine, sparkling water, and alcoholic drinks such as rum, whiskey, and vodka.
  • Despite India being the third largest producer and consumer of aluminum globally, the penetration of aluminum in the packaging segment is lower than the global average owing to high costs. There could be a potential proliferation in the packaging sector with growing health consciousness owing to aluminum’s hygienic properties and the boom in the pharmaceutical industries. According to CRISIL, the demand from the packaging segment for primary and secondary aluminum (i.e., recycled aluminum) volumes were anticipated to be 6-8% and 6-7%, respectively.
  • Moreover, Tinplate Company of India Ltd (TCIL) has been planning to double its capacity at its tinplate production line by 2025, following strong demand for its products. TCIL’s three-year expansion project will begin in 2022 and will increase the capacity at Jamshedpur from 379,000 tons to 679,000 tons. Following this, TCIL aims to reach a 1 million tons capacity by 2030. At the same time, JSW Steel is increasing its capacity from 3,50,000 tons to 6,20,000 tons.
  • According to the Agricultural and Processed Food Products Export Development Authority, the export value of alcoholic drinks from India in the fiscal year 2022 was 278 million US dollars. The vast majority of the beverages were shipped to the United Arab Emirates. The such huge export value would create an opportunity for the studied market to grow.

Food Industry is Expected to Drive the Market

  • Meat, fish, dairy-based desserts, premium chocolates, dry fruits, and pet food are the preferred food products packaged in metal cans and containers in India. Dairy products such as Gulab Jamun, Rasgulla, etc., are preferred to be packed in metal containers. Indians prefer these dairy-based desserts over other types of desserts. According to the Swiggy Survey, a total of 2.1 million orders of Gulab Jamun were placed from the Swiggy food delivery platform last year, which was the most ordered dessert. Ras Malai was in the second position with 1.27 million orders.
  • Furthermore, the growing pet food demand is also triggering the market's growth. For instance, the Animal Welfare Board of India (AWBI) announced a pet food shortage and urged India's government to boost local production. The country has an estimated pet animal population of 29 million and requires 30,000 tons of pet food. ​
  • The food sector is one of India's major sectors using metal cans and containers. Steel is used primarily to make rigid cans, whereas aluminum is used to make thin and lightweight cans. Nearly all steel used for cans is coated with a thin layer of tin to inhibit corrosion from the food and is called tin cans. The Indian market is witnessing significant emerging trends catering to the food industry. For instance, India is a major exporter of agricultural and processed food products. According to the Ministry of Commerce & Industry, despite COVID-19 restrictions, particularly owing to the second wave of the pandemic, agricultural and processed food product exports achieved a robust increase of 44.3% in 2021-22 (April-June) compared to the corresponding period in 2020-21.
  • The robust export activities of the country also created a need for storing processed items, leading to the demand for metal food cans.​ For instance, according to the Ministry of Commerce and Industry of India, India's export of final consumer food products, such as Ready to Eat (RTE), Ready to Serve (RTS), and Ready to Cook (RTC), registered significant growth in the last decade. The export of these products registered a CAGR of 10.4% from 2011-12 to 2020-21. This export increased by over 23% to USD 1,011 million from April to October (2021-22) compared to USD 823 million reported from April to October last year.
  • According to USDA Foreign Agricultural Service, in 2021, the consumption value of organic packaged food in India will be USD15 million. This is an increase over the previous year's consumption value of 14 million US dollars. In 2022, the consumption value was expected to rise to 17 million US dollars. Such huge consumption of organic packaged food is expected to drive the studied market.

India Metal Packaging Market Competitor Analysis

The Indian metal packaging market is quite competitive. It is moderately fragmented and consists of significant individual players, such as Ball India (Ball Corporation), Oricon Enterprises Limited, Casablanca Industries Pvt Ltd, and Hindustan Tin Works Ltd. Many companies are increasing their market presence by expanding their operations or entering into strategic mergers and acquisitions.
  • February 2022: Food Safety and Standards Authority of India paved the way for packaging drinking water in non-transparent packaging solutions like aluminum beverage cans. Ball Corporation welcomed the move as it will help the company address the issues on the sustainability front and contribute to the Government’s initiative to regulate single-use plastics and provide the end consumer with an eco-friendly alternative.
  • February 2022: One of the global giants in the metal packaging industry, Tecnocap, is reportedly forming a partnership company with an Indian group Oricon, in an attempt to debut in the Indian market. According to the report, the new joint venture named Technocap Oriental will be based in Mumbai. 75% of the company’s share capital will be controlled by the Tecnocap Group, while the remaining 25% will be by Oricon.

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 An Assessment of the Impact of COVID-19 on the Market
5.1 Market Drivers
5.1.1 High Recyclability Rates of Metal Packaging
5.1.2 High Recyclability of Metal Cans
5.2 Market Challenges
5.2.1 Metallic elements Can also Cause Cevere Health Complications in Food
6.1 Materials Type
6.1.1 Aluminum
6.1.2 Steel
6.2 By Product Type
6.2.1 Cans Food Cans Beverage Cans Aerosol Cans
6.2.2 Bulk Containers
6.2.3 Shipping Barrels and Drums
6.2.4 Caps and Closures
6.2.5 Other Product Types
6.3 By End-User Vertical
6.3.1 Beverage
6.3.2 Food
6.3.3 Paints and Chemicals
6.3.4 Industrial
6.3.5 Other End-users
7.1 Company Profiles
7.1.1 Asian Aerosol Group
7.1.2 Casablanca Industries Pvt. Ltd - Only Aerosol Cans
7.1.3 Shetron Limited - Metal Cans for Food and Not Beverages
7.1.4 Zenith Tins Private Limited
7.1.5 Petrox Packaging (I) Pvt. Ltd
7.1.6 Deccan Cans & Printers Pvt. Ltd
7.1.7 Hindustan Tin Works Ltd
7.1.8 Hi-Can Industries Pvt. Ltd
7.1.9 Kaira Can Company Limited
7.1.10 Ball India (Ball Corporation)