Packaging industry in India has potential for high growth
COVID-19 pandemic has given the world a new way of life. The new normal has redefined the way businesses are conducted all across the world. The impact of the pandemic on the packaging sector is mixed based on the portfolios of various end-users. Earlier, in the pre-pandemic era, packaging industry in India was witnessing growth owing to increased globalisation of trade in goods and services as well as emergence of new trade models, such as e-commerce and organised retailing.
E-commerce in India is projected to grow rapidly at a CAGR of 27 per cent from 2017 to 2026 to reach $200 billion by 2026. This has been further boosted by the current pandemic due to closures of store retailing consequent to the lockdowns. With the projections of the impact of the pandemic to be long drawn, consumer preferences towards e-commerce and e-retailing will continue to be a trend beyond the crisis. Currently, India’s share in the overall parcel shipments (transit packaging) worldwide is less than 1 per cent.