Market Trends of India Plastic Packaging Film Industry
Demand for BOPET Films is Expected to Increase
- BOPET (biaxially oriented polyethylene terephthalate), a polyester film produced from stretched PET, is utilized for its high tensile strength, chemical and dimensional stability, transparency, reflectivity, gas and fragrance barrier qualities, and electrical insulation. BOPET is a transparent, robust, and lightweight plastic that is used to produce a range of packaging materials for beverages, food, personal care, home care, medicines, and other consumer and industrial products.
- Food brands compete fiercely to differentiate their products on supermarket shelves crowded with similar offerings. Pouch packs and films are pivotal in this strategy, enhancing packaging appeal and bolstering brand recognition. According to Agriculture and Agri-Food Canada, in 2023, India's retail sales for chocolate pouches and films surpassed USD 250 million. By 2028, this figure is projected to soar to approximately USD 458 million, recording a CAGR of 12.3%. This indicates the expected demand for flexible pouches in India in the coming years.
- BOPET packaging films find prominent applications in the food industry, notably in stand-up and retort pouches, lidding films, and metalized films. The surge in the demand for these films is a response to the food industry's heightened concerns over shelf life extension and the imperative to curb food wastage throughout the supply chain.
- India Brand Equity Foundation (IBEF) reported that BOPET film has primary end applications in flexible packaging, representing about 60% of global consumption. The market is poised to see sustained dominance from Indian manufacturers, who are increasingly expanding their global footprint.
- Several companies are actively expanding their production capacities. In January 2023, Ester Industries Limited (Ester Filmtech Limited) inaugurated its new polyester (BOPET) film manufacturing plant in Telangana. Spanning 50 acres, this 48,000 MTPA unit was constructed at an estimated cost of INR 650 crores (USD 78.5 million). Once fully operational, the plant is projected to generate revenues of approximately INR 600 crores (USD 72.62 million).
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Rising Demand From the Healthcare and Pharmaceutical Sectors Aids Market Growth
- Plastic films, known for their exceptional clarity and transparency, offer a clear view of healthcare products, facilitating easy inspection and elevating product presentation. Their flexibility allows seamless conversion into various packaging formats like pouches, sachets, blister packs, and labels, meeting a wide array of healthcare packaging requirements.
- Pharmaceutical and healthcare packaging encompasses containment, ensuring drug safety, and facilitating product identification for handling and delivery. It plays a pivotal role in marketing life-saving drugs, packaging liquid and dosage forms, surgical devices, blood products, powders, and various solid and semisolid medications; it helps preserve their quality over an extended period.
- Invest India projected that the Indian pharmaceutical industry will be valued at USD 65 billion in 2024. India is a key player in pharmaceutical exports, reaching over 200 countries. Notably, India fulfills more than half of Africa's generic drug needs, dominates 40% of the US generic market, and supplies a quarter of the UK's medications. Moreover, India commands a substantial 60% share in the global vaccine market, particularly excelling as a primary provider of DPT, BCG, and measles vaccines.
- In the past few years, especially after COVID-19, pharmaceutical and healthcare exports from India have gradually increased. However, with the escalating export trade from the country, there is a rising demand for high-oxygen barrier polymer films for packaging pharmacies and medical devices.
- According to the India Brand Equity Foundation (IBEF) report, in the financial year 2023, India emerged as the global leader in generic drug production, exporting pharmaceuticals valued at approximately USD 25.4 billion, a significant rise from USD 17.3 billion in 2018. Moreover, India's expanding middle-income group, coupled with a surge in exports demanding higher packaging standards, is driving a notable uptick in plastic film packaging demand, especially in the pharmaceutical sector.
