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

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  • 98 Pages
  • April 2023
  • Region: India
  • Mordor Intelligence
  • ID: 5764855
The Indian rigid plastic packaging market is anticipated to register a CAGR of 9.36% over the next five years. The market is anticipated to witness significant growth rates primarily due to the increasing demand for rigid plastic goods across various end-user industries, including food and beverage and personal care products. In addition, essential home products, including trays, shallow plates, and rigid plastic containers, among others, also contribute to the growth of the industry in India.

Key Highlights

  • Rigid plastic packaging is widely used in the country because of its affordability, toughness, and lightweight. Rigid plastics like PET and HDPE can be placed directly into a recycling bin. Flexible packaging is less eco-friendly than rigid plastics, even though they are recyclable. The market is growing as rigid plastic packaging is employed in several end-user industries across the nation.
  • Further, the number of manufacturers in the rigid plastic packaging industry is expanding nationwide. Demand for rigid plastic packaging is driven by the growing rivalry among small and medium-sized market participants to provide eco-friendly and sustainable packaging solutions to attract customers' attention. These market participants in India are using various strategies to retain their position in the market.
  • The market for rigid plastic packaging is expanding in India with the rising food and beverage sector. The demand for packaged meals in the F&B sector and the healthcare industry is driving the growth of the market. The need for packaged goods has steadily risen due to urbanization, rising disposable income, and changing lifestyles. These containers also aid in extending the shelf life of food and ensuring food safety. Due to its characteristics, such as moisture resistance and tamper proof, it is becoming more popular in the healthcare sector.
  • However, strict regulations may pose problems for rigid plastic packaging, albeit to a lesser extent. The Indian government has stepped up its environmental monitoring, and campaigns to promote sustainable packaging are being started. Compliance with regulations is crucial since even the tiniest packaging error might harm the goods. Additionally, it will have a negative financial impact on the manufacturer. The cost of using raw materials that degrade more quickly is higher. The market for rigid plastic packaging is restricted from growing because it increases production costs, further pressuring prices.
  • The COVID-19 outbreak had a mixed impact on the rigid plastics packaging industry in 2020 and through the end of 2021. The COVID-19 pandemic was highly beneficial to the manufacturers of plastic packaging. Although many countries gradually banned such packaging and promoted reusable packaging, the pandemic changed how consumers and governments felt about them. As a result of the pandemic, there was a sharp increase in demand for nourishing food and beverages. Most of these products are packaged in single-use plastic. Globally, the orders were so large that, with assistance from most governments, the manufacturers and packaging companies in the sector even expanded their facilities. The Russia-Ukraine war also impacted the overall packaging ecosystem.

India Rigid Plastic Packaging Market Trends

Rising E-Commerce Sales is Expected to Drive the Packaging Market

  • India has witnessed a rapid surge in e-commerce over the last 5-6 years. This growth is attributed to an increase in internet and smartphone penetration and the ongoing digital transformation in the country. Furthermore, social distancing during the COVID-19 pandemic also added to the significant growth of the market.
  • This massive growth in e-commerce positively impacted the Indian packaging industry. According to the Indian Institute of Packaging (IIP), packaging consumption in India increased 200% in the past decade, from 4.3 kg per person per annum to 8.6 kilograms per person per annum.
  • As per the types of packaging materials, more than 50% of the sector is dominated by plastic, followed by paper, paperboard, and glass. The food processing sector has become the largest consumer of packaging, followed by pharmaceutical and personal care products through e-commerce.
  • The e-commerce market has experienced a tremendous demand for all sorts of healthcare packaging and related substrates, including rigid plastics and pumps. Similarly, demand for packaging for nutritional supplements like vitamins and other supplies required by customers in a pandemic situation has skyrocketed.
  • According to IBEF, the sales of the e-commerce market in India were valued at around USD 61.56 billion in 2021 and were estimated to record about USD 74.8 billion by 2022. Further, it is anticipated to reach USD 350 billion by 2030. Such growing e-commerce sales may drive rigid plastic packaging manufacturers to adopt e-commerce services to witness significant growth rates.
  • Further, future retail growth is quite likely to grow due to the e-commerce boom, which also fuels the development of the rigid plastic packaging sector. Customers now prefer e-commerce more than they did before, primarily due to technological advancements. The rigid plastic packaging industry is decreasing its supply by developing technologically and adapting to the different issues presented by e-commerce compared to traditional sales channels. Packaging companies' products must be durable enough to withstand the complex manual and automated supply networks required to deliver items to customers' doorsteps. Due to the expansion of e-commerce, the market for rigid plastic packaging has a sizable potential.

Food Segment is Expected to Hold a Significant Market Share

  • The food packaging industry in India is one of the major sectors. It is expanding due to the country's response to changing lifestyles and demographics, the accessibility of a cheap labor force, the unrestricted availability of raw materials, the expansion of export opportunities, and government initiatives to promote the growth of the food packaging industry. The pandemic, an increase in disposable income that increases appetites for discretionary purchases of branded goods, mainly processed food products, a revitalized retail sector, and state sponsorship contributed to the expansion of food packaging in the country.
  • Packaged foods are becoming increasingly popular in India with the increased number of working women and a shift toward on-the-go consumption due to hectic schedules. As a result, the use of creative and environmentally friendly packaging in the food industry is predicted to rise, which may fuel market expansion for rigid plastic food containers over the coming years.
  • In addition, factors including the nation's booming economy, favorable solid demographics, rising disposable income, growing consumer awareness, and increasing demand for processed foods are boosting the growth of the rigid plastic packaging market.
  • Due to the hectic pace of life in metropolitan centers, an increase in income, and a higher standard of living, the industry is also benefiting from the growing trend of online meal delivery combined with packaged food. With rising acceptance and innovation of packaging, incumbents like Zomato, Swiggy, and Dunzo are exploring the online food delivery business.
  • Zomato and Swiggy are a few of the prominent online food delivery apps with significant market shares in the Indian online food delivery market. Indian food delivery firms lose money on most orders due to high delivery costs and discounts. Hence packaging material is one of the critical aspects considered economically serving the purpose of packaging hot food. Therefore, the companies mainly offer the food in rigid plastic containers, which can serve their purpose of optimal costs and maintaining the freshness of the food.
  • As per the company financials, in 2021, Zomato generated a revenue of INR 19.94 billion (USD 0.24 billion), while Swiggy generated INR 25.47 billion (USD 0.31 billion). The significant sales from prominent food delivery brands may create more opportunities for rigid plastic packaging companies, which serve the packaging purpose and enhances the aesthetics.

India Rigid Plastic Packaging Market Competitor Analysis

The Indian rigid plastic packaging market is highly competitive. Numerous manufacturing enterprises are operating in the country, which has led to a highly fragmented industry. The market players are trying to maintain dominance by investing in R&D, incorporating new technology into their products, and delivering improved consumer products. Strategic alliances, agreements, mergers, and partnerships are a few strategies employed.
  • In November 2022, the Indian Institute of Science and Manjushree Technopack Ltd. collaborated to create methods to convert garbage into plastic packaging so that goods are recycled again. The organizations will also work together to improve the tops of PET bottles made entirely of recyclable plastic and produce a recyclable elastomeric material for all plastic pumps and triggers.
  • In October 2022, LyondellBasell, a chemical and refining company based in the Netherlands, and Shakti Plastic Industries, a recycler of plastics and polymers based in Mumbai, signed a memorandum of understanding to collaborate on a joint venture to construct and run a fully automated mechanical recycling plant in India. According to both companies, the plant is anticipated to start operating at the end of 2024. The facility will grow to be the biggest in the nation. It will process rigid post-consumer packaging and generate 50 tons of recycled polyethylene (PE) and polypropylene (PP) annually, equal to the single-use plastic waste produced by 12.5 million people.

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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 Assessment of Impact of COVID-19 on the Market
5.1 Market Drivers
5.1.1 Growing demand for primary packaging driven by unit sales
5.1.2 Rising E-Commerce Sales is Expected to Drive the Packaging Market
5.1.3 Recent innovations such as child resistant packaging & micropump driven by entry of global vendors expected to spur growth
5.2 Market Restraints
5.2.1 Insufficient Recycling Techniques Caution About the Environment
5.2.2 Stringent Laws & Regulations Pertaining to Plastic Industries
5.2.3 Competition From Alternative Packaging Materials
5.3 Global Rigid Plastic Packaging Market Overview
6.1 By Material Type
6.1.1 PP
6.1.2 PET
6.1.3 HDPE & LDPE
6.1.4 Other Material Types
6.2 By Product Type
6.2.1 Bottles & Containers
6.2.2 Cups & Tubs
6.2.3 Rigid Bulk Products (RIBC, etc.)
6.2.4 Other Product Types (Caps & Closures, etc.)
6.3 By End-user Type
6.3.1 Food
6.3.2 Beverage
6.3.3 Pharmaceuticals
6.3.4 Personal Care & Cosmetics
6.3.5 Homecare
6.3.6 Industrial (includes Lubricants, Fertilizers, and Bulk-containers used in Logistics)
6.3.7 Other End-user Types
7.1 Company Profiles
7.1.1 EPL Limited
7.1.2 Mold-Tek Packaging Ltd
7.1.3 Time Technoplast Ltd.
7.1.4 Chemco Group
7.1.5 Amcor Rigid Plastics
7.1.6 Manjushree Technopack Ltd.
7.1.7 Rishi FIBC Soliutions Private Limited
7.1.8 Tripak Solutions
7.1.9 Bulkcorp International Private Limited
7.1.10 Parekhplast India Limited
7.1.11 Pearlpet (Pearl Polymers Limited)
7.1.12 Pyramid Technoplast Pvt. Ltd
7.1.13 Regent Plast Pvt. Ltd.
7.1.14 Unity Poly Barrels Private Limited
7.1.15 Hitech Corporation (Hitech Group)
7.1.16 Supple Pack (India) Private Limited

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • EPL Limited
  • Mold-Tek Packaging Ltd
  • Time Technoplast Ltd.
  • Chemco Group
  • Amcor Rigid Plastics
  • Manjushree Technopack Ltd.
  • Rishi FIBC Soliutions Private Limited
  • Tripak Solutions
  • Bulkcorp International Private Limited
  • Parekhplast India Limited
  • Pearlpet (Pearl Polymers Limited)
  • Pyramid Technoplast Pvt. Ltd
  • Regent Plast Pvt. Ltd.
  • Unity Poly Barrels Private Limited
  • Hitech Corporation (Hitech Group)
  • Supple Pack (India) Private Limited