India Metal Packaging Market Size (2024 - 2029)

India Metal Packaging Market Analysis

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.

• 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 Industry Segmentation

Metal packaging is critical to the sustainable development of human civilization. As a permanent material, metal retains its properties even after infinite recycling, reducing resource wastage significantly. Metals like aluminum are very easy to sterilize for packaging purposes. The durability and high barrier protection make it an excellent choice for packaging materials.

India's Metal Packaging Market is segmented into Material Type (Aluminum, Steel), Product Type (Cans, Bulk Containers, Shipping Barrels, Drums, Caps, and Closures), and End-user Industry (Beverage, Food, Paints, and Chemicals, and Industrial)

The market sizes and forecasts are in terms of value (USD million) for all the above segments.