Key factors driving growth in India’s packaging market
According to market reports, “India’s packaging market to reach 422.3 billion units at 6.5% CAGR in 2024.” Portable packaging solutions demand is on the rise in India mainly driven by the changing lifestyle of consumers along with increasing demand for products that offer ease of convenience.
There are several other factors fostering growth in the packaging market in India. Increasing urban population, rising income, growing middle class, strong growth in organised retail and surge in e-commerce activity is generating demand for packaged products and further propelling growth in the Indian packaging sector.
As per reports, in 2019, food industry used most of the packaging and accounted for 56.5% market share. It was followed by non-alcoholic beverages and cosmetics & wellness industries with shares of 25.5% and 3.9%, respectively. Further, flexible packaging was the most consumed packaging and
is expected to reach 67.3% by 2024. Also, rigid plastics and paper and paperboard were other popular packaging solutions.
Another key factor driving demand of packaging solutions is high disposable income and rapid urbanisation, which is further fostering opportunities for ready-to-eat food and drinks and cosmetics & toiletries that address aspirational needs of the growing middle-class population.
Also, aesthetic appeal is another pivotal factor driving growth in packaging market size. To drive sales and attract consumer attention, manufacturers are focusing on packaging and enhancing its visual appeal.