Market Trends of India Paper And Paperboard Packaging Industry
Corrugated Packaging is Expected to Hold a Significant Market Share
- Corrugated boxes are essential in e-commerce packaging due to their durability and flexibility. These boxes offer superior product protection through their fluted, structured interior that absorbs impact and resists compression. This ensures products arrive intact, regardless of size or sensitivity. E-commerce packaging utilizes corrugated boxes in various sizes, colors, and weight capacities.
- Due to damaged packaging, corrugated boxes significantly reduce product returns in the e-commerce sector. Their robust construction and protective cushioning minimize the risk of damage during shipping, ensuring products arrive at customers' doorsteps intact. By safeguarding items against mishandling and environmental factors, corrugated boxes improve the overall customer experience, leading to fewer returns and exchanges.
- According to the India Brand Equity Foundation (IBFC), the growth of the e-commerce industry has transformed business in India, opening up various segments such as B2B, D2C, C2C, and C2B. Segments like D2C, B2B, and C2C have experienced significant growth in recent years. The D2C market in India is projected to reach USD 60 billion by 2027.
- The recyclability of corrugated boxes aligns with sustainability goals, appealing to environmentally conscious consumers and enhancing brand reputation. Corrugated boxes are integral components of the e-commerce supply chain in India, providing cost-effective solutions while addressing challenges associated with product returns.
- EBANX reports that online retail sales in India generated USD 103 billion in 2023. As the country's e-commerce industry grows rapidly, corrugated boxes have adapted to meet the increasing demand for efficient and reliable packaging solutions.
- These boxes can be customized to accommodate a wide range of products, from electronics to clothing, ensuring secure transit. Their stackable design also optimizes storage space in warehouses and delivery vehicles, enhancing logistics operations for e-commerce companies.
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Food and Beverage is Expected to Show Significant Growth
- Paper and paperboard packaging has become crucial in various sectors of India's food industry, including bakeries and snacks. Paperboard tubes offer several advantages, particularly in packaging dry goods such as spices, tea, and snacks. Their cylindrical shape provides efficient storage and transportation, maximizing shelf space and minimizing waste.
- Paperboard tubes can be customized with vibrant printing and labeling, enhancing brand visibility and consumer appeal. With their eco-friendly and recyclable properties, these packaging solutions align with modern businesses' sustainability goals and appeal to environmentally conscious consumers.
- Food producers, especially prominent FMCG brands, have set ambitious targets to reduce the use of plastics in food packaging and adopt new eco-friendly materials. Consequently, paper-based packaging materials are gaining popularity in India.
- Paper and paperboard packaging aligns with the needs of food service outlets, such as restaurants and fast-food chains. The increasing demand for fast food among India's youth has driven a surge in demand for effective packaging solutions, especially for moist or greasy items like pizza and cakes.
- As of March 31, 2023, India reported 1,816 Domino's Pizza stores across 393 cities. Paperboards, including white line chipboard and solid bleached surface board, provide essential grease-resistant properties for packaging products like pizza. These materials protect against moisture and grease, ensuring the pizza remains fresh and intact during transportation and storage.
- According to Agriculture and Agri-Food Canada news, high-fiber breakfast products in India generated a market value of USD 0.3 billion in 2023. Healthy packaged foods like breakfast cereals and high-fiber snacks benefit from paper and paperboard packaging, which ensures freshness and preserves nutritional value while offering eco-friendly solutions.
- According to Bikaji, in 2022, the estimated market value of packaged food was USD 51.35 billion in India. This was an increase as compared to the previous year. Packaged food's market value will likely increase and reach USD 70.22 billion in 2026.
- The increasing demand for packaged food is driving a parallel need for sustainable, recyclable, and eco-friendly packaging solutions. Paper and paperboard, being biodegradable and renewable materials, are gaining preference over plastic due to growing sustainability concerns.
- TThis shift toward more environmentally friendly packaging is expected to drive higher consumption of paperboard for boxes, cartons, and flexible packaging in the food industry.
