Indian Packaging & Corrugated Boxes Industry Overview & Trends

Indian Packaging & Corrugated Boxes Industry Overview & Trends

Indian Packaging Industry Overview:
The India Packaging Market size is estimated at USD 71.90 billion in 2023, and is expected to reach USD 130.14 billion by 2028, growing at a CAGR of 12.60% during the forecast period (2023-2028). 
The demand for packaging in India has expanded drastically, spurred by the rapid growth in consumer markets, especially in processed food, personal care, and pharmaceutical end-user industries. Packaging is India's one of the fastest growing sectors. Over the last few years, the industry has been a key driver of technology and innovation, contributing to various manufacturing sectors, including agriculture and the fast-moving consumer goods (FMCG) sectors. The packaging industry is driven by the factors such as rising population, increasing income levels, and changing lifestyles are anticipated to drive consumption across various industries leading to higher demand for packaging product solutions. Moreover, demand from the rural sector for packaged products is fueled by the growing media penetration through the internet and television.

On 11 November 2021, the government announced the production-linked incentive (PLI scheme) to incentivize firms in 10 sectors to drive local manufacturing and improve exports to control the disruption in the supply chain scenario. In addition, there is Atmanirbhar and the structural reforms, which should boost growth prospects for packaging in India. Furthermore, according to Western India Corrugated Box Manufacturers Association, the market for corrugated boxes in India needs to hike prices by 35% to offset kraft paper and conversion cost hikes to survive the current situation.

According to the Indian Institute of Packaging (IIP), packaging consumption in India is increased by nearly 200% in the last decade, from 4.3 kilograms per person per annum (pppa) in 2010 to 8.6 kilograms pppa in 2020. Despite the sharp growth over the last decade, this industry remains a large space for growth compared to other developed countries worldwide. Furthermore, India is emerging as an organized retail destination globally. The presence of e-commerce is increasing rapidly and is bringing around a revolution in the retail sector, driving the need for packaging. Retailers are now leveraging digital retail channels, thus enabling wider reach out to customers with fewer amounts of money spent on real estate. Thus, organized retail services and the boom in ecommerce offer enormous potential for the future growth of retailing in India, which in turn is promoting the growth of the packaging sector.

Indian Corrugated Boxes Overview 
The India corrugated boxes market size reached US$ 6.5 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 12.3 Billion by 2028, exhibiting a growth rate (CAGR) of 10.8% during 2023-2028. The growing usage in the food and beverage (F&B) industry for improving safety, thriving e-commerce industry, and favorable government initiatives represent some of the key factors driving the market

India Corrugated Boxes Market Trends: 
Presently, the rising demand for corrugated boxes in the food and beverage (F&B) industry, as they offer improved safety, resistance to bacterial infection, and keep the food fresh for a long period of time, represents one of the key factors driving the market in India. In addition, the growing demand for corrugated boxes due to the rising preference of consumers toward online shopping is positively influencing the market in the country. Besides this, the increasing consumer preferences for lightweight and innovative packaging materials is contributing to the growth of the market in India. Additionally, the rising demand for corrugated boxes due to the restrictions of utilizing wooden packaging in exports is impelling the growth of the market. Apart from this, the increasing demand for corrugated boxes, as they efficiently deliver products without any damage or deterioration in a sustainable manner, is offering lucrative growth opportunities to industry investors. In line with this, the rising awareness among consumers about the harmful impact of using non-biodegradable packaging materials is strengthening the growth of the market. Moreover, the Government of India is encouraging the adoption of corrugated boxes and focusing on recycling and waste reduction, which is offering a positive market outlook. Furthermore, key players are introducing graphic designed customized corrugated boxes to increase product sales and offer greater flexibility to consumers. These innovations are projected to fuel the marker growth in India.

The above report has been extracted from the Annual Report of B&B Triplewall Containers Limited’s Annual report for FY 22-23
 

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