Market Trends of India RTP Industry
This section covers the major market trends shaping the India Returnable Transport Packaging Market according to our research experts:
Automotive Segment is Expected to Witness Significant Growth
- The automotive industry has evolved into an industry of complex supply chains and networks, requiring many activities to be streamlined and error-free to avoid abnormalities. Returnable transport packaging is aiding supply chains in the automotive industry by providing secure and eco-friendly methods to manage the flow of materials and information.
- In the Automotive sector, it is essential to have packaging solutions that deliver the ultimate protection for high-value goods and parts. From the engine to other small mechanical elements and decorative interior items, the production of a vehicle requires various components. India’s automobile and automotive parts market witnessed growth over the past few years. The auto component industry of India expanded by 10 % to reach a value of USD 56.52 billion in FY2019, according to India brand equity Foundation (IBEF).
- According to IBEF, the Indian automotive industry is the seventh-largest manufacturer of commercial vehicles and is expected to reach USD 251.4 - 282.8 billion (including component manufacturing) by 2026. Between FY12-17, the automotive exports witnessed a 4.3% CAGR and are further estimated to register a 3.05% CAGR over the period 2016-2026.
- The Indian automotive sector was already witnessing a decline in 2020 before the outbreak COVID-19. It saw an overall reduction of almost 18%. This situation was worsened by the onset of the Covid-19 pandemic and the ongoing lockdowns across India and the rest of the world. These two years (FY20 and FY21) are challenging times for the Indian automotive sector on account of slow economic growth, negative consumer sentiment, BS-VI transition, changes to the axle load norms, liquidity crunch, low capacity utilization and potential bankruptcies which could show a significant effect on Returnable Transport Packaging Market.
Understand The Key Trends Shaping This Market
Download Sample
Food and Beverage is Expected to Occupy the Largest Market Share
- The Indian food and grocery market is the world's sixth-largest, with retail which contributes to about 70% of the sales. As per the Agricultural and Processed Food Products Export Development Authority (APEDA), between April - October 2018, exports of agricultural and processed food products was around USD 21.61 billion. Indian processed and agricultural foods are exported to more than a hundred countries, mainly to the Middle East, Southeast Asia, SAARC countries, the European Union, and the United States.
- According to the Indian Government, Amazon which is a global e-commerce giant is also planning to enter the Indian food retailing landscape by investing USD 515 million in the next few years, which is expected to boost the market forward. According to Oxford Economics, the Indian retail market is projected to grow at a compounded annual growth rate of 6% to reach USD 865 billion by 2023. The annual growth rate for the fast-moving consumer goods sector is predicted at 11% during the next ten years.
- Various companies in beverages, alcohol, and processed foods industries have started to explore alternative packaging solutions, including glass, to reduce the use of plastic due to concerns over plastic waste and possible bans by more state governments, following Maharashtra. These factors have fueled the adoption of RTP in the country at a smaller scale too.
- Changing consumer behavior, technological innovations, and government regulations have transformed the food and beverage industry in India in the past decade. Higher disposable income in families has resulted in more families dining out and exploring new cuisines. India's Food & Beverages industry is evolving faster than ever, and global brands have entered the burgeoning market, which is expected to gross revenues of USD 540 billion by 2020 is expected to impact the returnable transport packaging in the region positively.
