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India Plastic Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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  • 120 Pages
  • October 2021
  • Region: India
  • Mordor Intelligence
  • ID: 5459079

The India Plastic Packaging market was expected to register a CAGR of 2.5% during the forecast period (2021-2026). The COVID-19 pandemic provided significant relief to the plastic packaging vendors. Although many countries were slowly banning such packaging and promoting reusable packaging, the outbreak changed the consumers’ and governments’ behavior toward them. Due to the COVID-19 outbreak, the demand for nutritional drinks and healthy food increased exponentially. The majority of these products are packaged with single-use plastic. The orders were so huge on a global level that the manufacturers and packaging companies in the field even expanded their facilities, which was also supported by most of the governments.

Key Highlights

  • Owing to the increasing population, rising income levels, changing lifestyles, and growing economy, the demand for e-commerce packaging is increasing in India. According to the India Brand Equity Foundation data, the Indian e-commerce sector is predicted to expand to USD 200 billion by 2026. A surge in internet and smartphone usage has fueled most of the industry's growth.
  • India is also taking all measures to ensure a complete ban of single-use plastic by 2022, as it was envisioned by Prime Minister Narendra Modi, according to Union Environment Minister Prakash Javadekar. In June 2021, the country launched the Plastic Hackathon 2021 campaign that focused on awareness of single-use plastics.
  • Furthermore, the India Brand Equity Foundation reported that country exported plastics raw materials worth USD 280.38 million in March 2021, and the export from April 2020 to March 2021 reported USD 3.29 billion.
  • In July 2021, Defense Research and Development Organization (DRDO), in collaboration with Acharya Nagarjuna University and Ecolastic Private Limited, introduced environmentally-friendly packaging products made from natural and plant-based food-grade materials intended to eliminate single-use plastic. These bags are sustainable, cost-effective, and ocean-safe alternatives to single-use plastics, unlike traditional polyethylene bags created from petrochemicals, which are hazardous to the environment and take years to degrade.

Key Market Trends

E-commerce is One of the Industry that is Driving the Market

  • The plastic packaging growth in the e-commerce space in the region is expected to be affected by the recent regulation on the ban of single-use plastics, which is expected to be enforced anytime in the future, once the discussion with all stakeholders gets concluded. For instance, Flipkart announced that it plans to eliminate single-use plastic in packaging, and it may use 100% recycled plastic in its own supply chain by 2021.
  • The Indian packaging sector is one of the fastest-growing segments in the country, owing to the e-commerce boom. Packaging consumption in India has surged 200 percent in the last decade, from 4.3 kilograms per person per annum (pppa) to 8.6 kg pppa, according to the Indian Institute of Packaging (IIP).
  • The ASSOCHAM stated that India is annually consuming 12.8 million metric ton of plastics. Moreover, consumers are demanding more sustainable products, and brands must imbibe this concept strongly in their business approach.
  • Recycling has become a major part of cosmetics, skincare, and perfume companies. In February 2021, Dow Packaging and Specialty Plastics (P&SP) and Lucro Plastecycle, an Indian recycling firm, have inked an agreement to develop and commercialize polyethylene (PE) film solutions made from post-consumer recycled (PCR) plastics in India. This deal delivers a closed-loop packaging solution to help India achieve a circular economy while also boosting the Asia Pacific region's total circularity portfolio.

Food is One of the Significant Factor for Market Growth

  • The food segment is one of the largest users of plastics. The demand for rigid plastic packaging in the food industry is high, as it is increasingly replacing traditional materials, such as paperboard, metals, and glass, owing to beneficial properties, such as lightweight and reduced cost. ​
  • The market for small-sized plastic containers is anticipated to witness growth, with the sales of dairy products, jams, etc. In recent years the sales of yogurt witnessed a slump. Hence, in order to regain the demand, many manufacturers are launching new products.
  • In May 2020, Stokes Sauces announced the launch of squeeze bottles that are entirely made from recycled plastic. The bottles are also 100% recyclable. They may be used for all five of the brand's products, including its tomato ketchup and reduced sugar tomato ketchup, as well as the mayonnaise, brown sauce, and barbecue sauce.
  • Brand owners are increasingly looking for packaging converters to design secondary packaging solutions that can prevent shipping-related damage. Nowadays, for beverages that are packaged in glass bottles (the most fragile items), packaging airbags are used. Airpack provides this solution to various e-commerce companies.

Competitive Landscape

As the demand for plastic packaging has been increasing significantly in the Indian region, the market is mildly concentrated with the presence of major players like Amcor, Coveris Holding, Berry Global, Sealed Air Corporation, Constantia Flexibles, among others.

  • Jan 2021 - Wipak has partnered with Arla Foods, Paulig, and VTT to test Thermocell, a cellulose and fatty acid-based plastic film, to create food packaging. The bio-based substance is constructed of renewable materials and can be used instead of oil or fossil-based plastic. The company has been assisting with the material's market launch by sharing its creative development knowledge in durable materials and testing and certifying Thermocell's compatibility for food applications.
  • May 2021 - Sidel is introducing the StarLITE​ HPC base. The new oval bottle base option for flat PET containers aids in achieving optimum performance while also being compatible with up to 100% recycled PET (rPET). The new bottle base not only improves container stability by up to 25%, but it also optimizes bottle weight and energy usage, lowering production costs and greenhouse gas (GHG) emissions while paying for itself .

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

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 Market Drivers
4.4.1 Increasing Adoption of Lightweight-packaging Methods
4.4.2 Increased eco-friendly packaging and recycled plastic
4.5 Market Challenges
4.5.1 High Price of Raw Material (Plastic Resin)
4.5.2 Government Regulations & Environmental Concerns
6.1 By Packaging Type
6.1.1 Flexible Plastic Packaging
6.1.2 Rigid Plastic Packaging
6.2 By Product Type
6.2.1 Bottles and Jars
6.2.2 Trays and containers
6.2.3 Pouches
6.2.4 Bags
6.2.5 Films & Wraps
6.2.6 Other Product Types
6.3 By End-User Vertical
6.3.1 Food
6.3.2 Beverage
6.3.3 Healthcare
6.3.4 Personal care and Household
6.3.5 Other End-User
7.1 Company Profiles
7.1.1 Amcor Plc
7.1.2 Coveris Holding
7.1.3 Berry Global
7.1.4 Constantia Flexibles
7.1.5 Wipak Ltd.
7.1.6 Sonoco Products Company
7.1.7 Sealed Air Corporation
7.1.8 National Flexible
7.1.9 Tetra Laval
7.1.10 Silgan Holdings

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Amcor Plc
  • Coveris Holding
  • Berry Global
  • Constantia Flexibles
  • Wipak Ltd.
  • Sonoco Products Company
  • Sealed Air Corporation
  • National Flexible
  • Tetra Laval
  • Silgan Holdings