India Plastic Packaging Market Size

India Plastic Packaging Market Analysis

The India Plastic Packaging Market size is estimated at USD 21.77 billion in 2024, and is expected to reach USD 25.35 billion by 2029, growing at a CAGR of 3.09% during the forecast period (2024-2029).

The growing preference for convenience and portability packaging continues to be a significant driver of rigid plastics in food packaging. Also, the need for comfort, portability, and tensile strength remains crucial for rigid plastics usage in the cosmetics & toiletries industry.

• Flexible packaging accounts for more than 60% of the market and is mainly used for food, according to the Flexible Packaging Association. Since flexible packaging can offer solutions to various packaging problems, the demand for flexible packaging is expanding. According to IBEF, India's grocery and food market are the sixth-largest in the world, with 70% of sales coming from retail. Also, food processing accounted for 32% of India's total food market and was rated fifth in production, consumption, and export. It would propel the demand for flexible plastic in packaging.
• The need for e-commerce packaging is developing in India due to the country's expanding economy, growing middle class, changing lifestyles, and increasing population. The India Brand Equity Foundation predicts that by 2026, the country's e-commerce market will reach USD 200 billion. The boom in internet and smartphone use is also driving the majority of the industry's growth.
• Also, in July 2021, DRDO collaborated with Acharya Nagarjuna University, and Ecolastic Private Limited introduced environmentally-friendly packaging products made from natural and plant-based food-grade materials to eliminate single-use plastic. These bags are sustainable, cost-effective, and ocean-safe alternatives to single-use plastics, unlike traditional polyethylene bags created from petrochemicals, which are hazardous to the environment and take years to degrade.
• According to Union Environment Minister Prakash Javadekar, India is also making every effort to secure a comprehensive ban on single-use plastic by 2022, as Prime Minister Narendra Modi envisioned. The nation started the Plastic Hackathon 2021 campaign to raise awareness of single-use plastics in June 2021, anticipating it hindering the market growth.
• Due to the COVID-19 outbreak, the nutritional drinks and healthy food demand increased exponentially. The majority of these products are packaged with single-use plastic. The orders were so huge globally that the manufacturers and packaging companies in the field expanded their facilities, which most governments supported. Further, the Russia-Ukraine war also impacted the overall packaging ecosystem.