Market Trends of India Plastic Packaging Industry
Food Segment to Hold a Significant Share
- The food industry's demand for plastic packaging is driven by the need for convenient, compact solutions, particularly with the increasing popularity of ready-to-eat meals. These meals, often packaged in sealed trays of various shapes, including round containers and salad packs, are now seeing a notable shift toward using sustainable and environmentally friendly materials. This strategic move aligns with consumer preferences for eco-conscious packaging solutions, indicating a commitment to meeting market demands and reducing environmental impact within the industry.
- Flexible packaging comes in various forms, such as pouches, bags, films, and wraps, allowing for versatile packaging solutions to accommodate different cuts, portion sizes, and packaging formats within the meat, poultry, and fish industries. This enables efficient packaging of a wide range of products, from whole cuts to processed items like sausages and fillets.
- The increasing shift of consumers toward nutrient-dense dairy products such as cheese, milk, yogurt, and more to achieve high nutrition is likely to aid growth. Besides, dairy products have been long associated with vitamins, proteins, highly absorbable calcium, and more. Numerous biologically functional components in these dairy products are expected to strengthen the dairy products segment over the forecast period.
- Furthermore, plastic trays and containers are used in numerous industries as food containers in cafeterias, restaurants, homes, offices, etc. Food services businesses like restaurants utilize food packaging trays for takeout and delivery services, assuring food remains secure and presentable. Besides, other sectors like cafes and bakeries depend on these trays for packaging and displaying their products, improving customer convenience and appeal.
- Trays are mainly used for primary and secondary packaging in the food industry and secondary packaging in pharmaceutical and consumer goods. Trays and containers are part of the disposables market, mainly in the food, beverage, and hospitality industries. These products are widely available, cost less, and are a large part of the disposables market.
- As part of the "Make in India" initiative, the Indian government prioritized and promoted investments in the food processing sector. The government created 134 cold chain projects and 18 mega food parks to improve the food processing supply chain. The food processing sector is also on a solid development trajectory due to recent government measures, such as the INR 10,000 crore (USD 1.35 billion) program launched to promote the industry, eventually enhancing the demand for flexible plastic packaging in the country.
- The growth of e-commerce in India creates the demand for different food products. The rise of online retail sales in the county grew significantly from USD 87 million in 2022, and it is forecasted to reach USD 173 million by 2027. Growing retail online sales show that the demand for food packaging is increasing in India. Moreover, plastic bottles and containers have gained importance in the food industry due to their ability to provide longer shelf life to packaged food items.
Understand The Key Trends Shaping This Market
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Bottles to Witness Strong Growth in the Country
- The industries where bottles are widely used in the market include food, beverage, cosmetics, industrial, healthcare, and more. The beverage sector's plastic bottle market is anticipated to witness growth owing to the increased demand for bottled water and non-alcoholic beverages.
- PepsiCo India announced that its product Pepsi Black will introduce the first 100% recycled PET plastic bottles in the carbonated beverages category to be manufactured in India. The manufacturer does not include the Pepsi Black label and cap for a completely recycled bottle in this initiative.
- The market for bottled water packaging in plastic bottles is driven by the rising demand for packaged drinking water among consumers because they are more cost-effective than other packaging options, have a longer shelf life, and are easier to use. The packaged and bottled water packaging industries are experiencing rapid growth as public awareness of the need for pure drinking water increases.
- Plastic bottles have a significant demand in India in various categories, such as carbonated soft drinks, juice drinks, fruit juices, and sports and energy drinks, out of which water bottles show a potential share in the country, aiding the growth of the plastic bottle market. Indian Railways Catering and Tourism Corporation Limited launched a pet bottled water brand, "Rail Neer," which is sold on trains and railway stations. It produced 75.20 million bottles in 2021, which increased to 357.70 million bottles in 2023, indicating the organic trend in demand for plastic bottled water in the region.
- A plastic bottle is simple to shape. It can be difficult for a box containing pressurized goods like soft drinks to keep its shape under intense internal pressure. However, with technological advancements, manufacturing methods, and material development, plastic can be molded into any shape, even under pressure. If dropped, a plastic bottle has a high safety factor and is lightweight, transparent, and refillable. The need for collection can constrain plastic recycling. However, new technologies are making it possible for more plastic to be recycled.
