Market Trends of India Pouch Packaging Industry
Stand-up Pouches are Expected to Witness Growth
- Stand-up pouches have emerged as a versatile and eco-friendly solution in the packaging sector, meeting the demands of both consumers and manufacturers. Recent years have witnessed significant advancements in pouch technology, propelled by a heightened focus on sustainability, technological innovation, and design adaptability.
- Widely embraced in the food sector, stand-up pouches find applications in diverse segments like pet food, baby food, and liquid packaging (including tea, coffee, and juices). Their appeal lies in easy opening (via tear notches and laser perforations), user-friendliness, and reseal ability. Additionally, their chemical inertness has expanded their utility beyond food into sectors like pharmaceuticals and cosmetics.
- The surge in demand for small packs has propelled the growth of the pouch segment, catering to the trend of smaller quantity packaging. As India shifts from a history of food scarcity to abundance, the potential for expanding its food processing capabilities is immense. In urban centers, there is a notable uptick in the consumption of processed foods, especially ready-to-eat items and snacks.
- Urban areas, especially, are witnessing a notable uptick in the demand for processed foods, such as ready-to-eat items and snacks. According to the India Brand Equity Foundation, the annual household consumption of processed foods in India is projected to triple by 2030, solidifying the nation's position as an exquisite market. According to the India Brand Equity Foundation, the retail market across India in 2020 was valued at USD 883 billion, and it is expected to reach USD 1,300 billion in 2024. The rise in the retail market in the country would push the need for pouch packaging.
- Stand-up pouches are evolving significantly, driven by sustainability imperatives, packaging advancements, and printing innovations. Brands opting for biodegradable and compostable materials showcase their environmental commitment and resonate with the growing eco-conscious consumer base.
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The Food End-user Industry Widely Uses Pouch Packaging Products
- Consumer preferences are reshaping the Indian packaged food industry, fueling a rapid evolution. There is a notable uptick in the appetite for premium and novel food offerings. This appetite extends to artisanal biscuits, nutritious snacks, convenient ready-to-eat (RTE) and ready-to-cook (RTC) meals, and an array of sauces. The food end-user industry is primed for substantial growth, with consumers diverting a larger share of their budgets to value-added food.
- Consumers increasingly turn to nutrient-dense dairy products like cheese, milk, and yogurt, seeking heightened nutrition. These products have a longstanding reputation for being rich in vitamins, proteins, and easily absorbable calcium. The presence of numerous biologically functional components is expected to further bolster the usage of dairy products over the forecast period.
- According to the Ministry of Statistics and Program Implementation (MOSPI) India, the revenue from the manufacture of dairy products in India was USD 29.57 million in 2020; it was expected to reach USD 31.21 billion in 2023. Also, in 2023, India emerged as the largest consumer of cow milk globally, with consumption exceeding 87 million metric tons, as the USDA Foreign Agricultural Service reported. India's dairy sector boasts diverse products, including ghee, butter, lassi, and paneer.
- Confectionery manufacturers are increasingly seeking lightweight, protective, visually appealing, and high-barrier pouch packaging, which is set to boost sales. The multi-sensory experience of confectionery packaging entices purchases and significantly influences the market's growth trajectory. Pouch packaging, favored by consumers and producers of baked goods and snacks, offers unparalleled convenience.
- According to Ministry of Commerce & Industry data in June 2023, frozen fish emerged as a leading export, raking in INR 5,503.18 crore (USD 687.05 million). This year also saw a significant surge in frozen fish exports; quantities rose by 62.65%, while INR and USD values climbed by 58.51% and 45.73%, respectively. Such growth in exports bolsters the demand for the market as a whole across the country.
