15-06-2013, 12:17 PM
Flexible Packaging: Changing Dynamics of Indian Packaging Market
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Packaging Industry Overview
Indian packaging industry is valued at about US$ 13 billion.
Flexible Packaging Industry 5
The industry is expected to grow at a 10-year compound annual growth rate
(CAGR) of over 15 per cent to about US$ 28 billion by 2014.
This growth trend is expected to continue in future, driven by greater
demand because of economic growth; increasing share of organised retail
will be a key driver.
In addition, the packaging industry is increasingly becoming technologyoriented
with innovations driving the market; this is expected to lead to
packaging that increases shelf life, reduces cost and is light weight.
Packaging Market Dynamics
Growth in per capita income, changing lifestyle patterns, growth of
consumer society and health consciousness are some of the key drivers of
the industry.
Most of the raw materials required for packaging are abundantly available in
the country with well established industries for manufacturing plastics,
paper, glass and metals.
Increasing global trade and India's WTO commitment of rationalising tariffs
and lowering trade barriers have given rise to international trade in
packaging materials and machinery.
Greater competition, need for labelling of quality, quantity and price of goods
according to Government-prescribed norms and preference for packed
goods are some of the reasons that have resulted in innovation and
introduction of technology in the packaging market.
Flexible Packaging Industry Overview
The flexible packaging industry is estimated to be valued at US$ 900 million,
growing at about 20 per cent annually.
Plastics, paper and metals are the key materials used in flexible packaging
products, which are made from foil or paper sheet or laminated paper and
plastic layers.
Factors Driving Flexible Packaging Industry
Food and fast moving consumer goods (FMCG) industries are the largest
consumers of flexible packaging products; food accounts for 38 per cent of
flexible packaging market.
Food and grocery market in India is among the six largest in the world; food
and grocery retail contributes to 70 per cent of the total retail sales.
According to industry estimates, the segment is growing at a rate of 104 per
cent and is expected to grow to US$ 482 billion by 2020.
According to the Industrial Entrepreneur's Memorandum (IEM) filed with the
Secretariat for Industrial Assistance (SIA) up to 2010, investments in
demand sectors for flexible packaging increased at a CAGR of 25.2%.