India is one of the largest markets for packaged food in the world, just behind the US, China, Brazil and Mexico, and the second-largest in Asia. This situation is looking to get even better as the market and industry are expected to grow to USD 32 billion by 2025.
The packaging industry in India is currently valued at USD 24.6 billion and is expected to grow to USD 32 billion by 2025. Starting from packaging of fruits and vegetables, medicinal products, home and personal care products to highly dangerous and heavy industrial products, the packaging industry has led to greater specialisation over a period of time.
India is one of the largest markets for packaged food in the world, just behind the US, China, Brazil and Mexico, and the second-largest in Asia. The packaged food industry is the fifth-largest sector in India. But with per capita consumption of 24kg per year, the Indian packaged food market is still at an early stage.
With a consumption of 22 billion litres of drinks (alcoholic drinks and soft drinks), India is the fourth-largest sales market for beverages in Asia. Soft drinks is the major segment with bottled water being the largest category. The Indian non-alcoholic beverage market was growing at an annual compounded growth rate of 23% between 2010 and 2013, as more people are choosing packaged soft drinks. It is expected that the consumption of juice in India will rise by an annual compounded growth rate of 20% until 2017 up to 1.2 billion litres.
With more than 50% of the population younger than 25 years, increasing disposable incomes, a growing middle class, ongoing urbanisation and changing lifestyles, India enjoys highly favourable demographic patterns. As young people are one of the key drivers in the demand for processed and hygienic packaged foods, manufacturers are introducing products that increase convenience and reduce the time required to prepare meals. Products with additional ingredients – in easy to handle packaging and convenient package sizes – will continue to gain popularity. E-tailers are also enjoying increasing online revenue sales. According to research, sellers in India have a positive sentiment towards e-commerce with maximum traction seen in food businesses.
Food waste is a huge issue that the world is facing. It’s a long and complicated journey from farm to table, and 54% of food is lost between harvest and transportation. Packaging can play a large role in keeping food fresh during its journey.
Easy to handle packaging and convenience continues to gain popularity in India. The key drivers of the trend are efficiency, protection and brand management.
Packaging protects and promotes food, beverage, and consumer products across the globe. Packaging is expected to grow at an average rate of 3.4% over the next decade (according to Smithers Pira), and most producers of consumer goods are seeking ways to enhance their sustainability initiatives.