India Plastic Bottles Market Trends

Market Trends of India Plastic Bottles Industry

Market Growth Expected to be Driven by the Polyethylene Terephthalate (PET) Resin

• PET has become a vital packaging material among bottle manufacturers nationwide. Its versatility in accommodating different shapes and sizes has provided unparalleled alternatives to conventional glass and metal containers, making it a highly desirable choice in the packaging industry.
• As per the Plast India Foundation’s 2022 and early 2023 updates, Reliance Industries Limited emerged as the top PET producer in India, boasting a capacity exceeding 1,000 kilotons. The overall PET production capacity in India for that year surpassed 3,400 kilotons. Following closely behind was IVL Dhunseri, the second-largest PET producer in the nation, with a capacity of 720 kilotons.
• In May 2024, Loop Industries Inc., a clean technology firm dedicated to advancing a circular economy for plastics and fibers, entered into a 50/50 joint venture agreement for the Indian market with Ester Industries Ltd. Ester is recognized as one of India's premier manufacturers of polyester films and specialty polymers. The joint venture, termed "Infinite Loop India," aims to establish and operate a manufacturing facility in India. This facility will leverage Loop's proprietary Infinite Loop technology, which boasts a significant advantage over conventional mechanical PET recycling. Such collaborations by companies to recycle PET are expected to create opportunities for PET bottles in the country.
• According to Moneycontrol, a trade and finance advisor in India, TPL Plastech had a market capitalization of INR 4.91 billion (USD 0.59 million) as of March 2024. This made TPL Plastech the biggest plastic PET bottle, jar, and container company in India based on market capitalization. Hitech Corporation was ranked second, with a market capitalization of INR 3.5 billion (USD 0.42 million). Therefore, sustainable packaging solutions have gained traction in recent years due to rising consumer awareness. PET has emerged as an integral resin in the pursuit of eco-friendly packaging materials due to its recyclability and potential for circularity.
• Technological advancements are shaping the future of PET recycling, enhancing its efficiency, cost-effectiveness, and eco-friendliness. By collecting, processing, and converting used PET products into new packaging materials, India can significantly reduce reliance on virgin resources, reducing environmental waste.

Beverage Segment Poised for Strong Market Expansion

• Owing to durability and recyclability, plastic bottles made of PET resin are more prevalent in the beverage packaging market than glass bottles. The trend shows that lightweight, durable, and cost-effective PET is increasingly becoming the packaging medium for water. Moreover, PET bottles can be molded in different shapes according to packaging trends and the demand for labels to be applied to the body.
• According to the United Nations University Institute for Water, Environment, and Health, more than 14 lakh tons of PET plastic, commonly packaged in bottled water, are consumed annually in India. Further, the country is also one of the fastest-growing mineral water markets. According to a report by the International Bottled Water Association, about 97% of bottled water bottles are plastic, and nearly 80% of that plastic is polyethylene terephthalate (PET).
• Demand for nutraceutical beverages, which combine the advantages of pharmaceuticals and nutrition, is surging. Products enriched with immunity-enhancing components like turmeric, ginger, and probiotics are experiencing robust growth. Functional beverages tailored for targeted hydration are becoming increasingly favored by health-conscious consumers. Additionally, beverages enhanced with vitamins, minerals, and other beneficial ingredients are drawing a significant consumer base.
• According to KNAV, a global accounting and advisory firm, in 2023, carbonated beverages accounted for over 40% of India's non-alcoholic drinks market. Packaged water was the second most favored option, capturing a 30% share. Also, in 2023, India's non-alcoholic beverage industry generated revenues nearing USD 17 billion. The demand for non-alcoholic beverages in the country is expected to drive the market for plastic bottles.
• Therefore, heightened awareness of environmental issues has driven significant shifts in packaging trends across the country in recent years. Key priorities have emerged, such as reducing container weight and streamlining packaging materials. This eco-conscious mindset has spurred the creation of products crafted from recycled materials. To further promote circularity in the supply chain, companies across the nation are introducing recyclable bottles made from recycled content.