Underpenetrated Packaging Industry in India 2019


Packaging is more than just about protecting and preserving the product. Today, it is an important branding tool as well. The Indian packaging industry offers great untapped potential. This is particularly evident when you compare India’s per capita packaging consumption with developed nations like the US. Here are 5 things about India’s underpenetrated packaging industry.


Low Per Capita Consumption: Against the United States  109 kg per year, India ’s annual per capita packaging consumption is 10.5 Kg. In China, it is 45 Kg. This presents an ample and dynamic opportunity.

The Key Market: For India’s packaging industry, the key consumers are food processing and pharmaceutical sector. While the former makes up nearly half the demand, the later accounts for 25% of the demand.

Growth Drivers: Industry experts have identified three growth drivers for the industry.
  • MNCs who have to comply with global policies and hence will have to adopt standard packaging solutions including modern equipment.

  • Rising consumer demand for quality packaging in the dominant unorganized sector. However, the upfront cost burdens might impede fast track adoption of standard packaging solutions.

  • Increased purchasing power with a rising middle class will force organized sector particularly food and pharmaceutical to adopt and implement better quality packaging solutions.
Dominant SMEs: India’s packaging industry is dominated by small and medium scale enterprises. A look at some of the detailed company reports from the sector reveals that small and midsize companies account for 85-90% of the industry participants.

Flexible Packaging: Innovation will drive industry growth. The growing urban middle class and India’s e-commerce boom has forced industry players to adopt dynamic packaging solution.

India’s packaging industry is the fifth largest in the world and with an expected CAGR of 13 to 15 percent for the years ahead, there are bright days ahead for those who can adapt and implement technology for innovative and eco-friendly packaging solutions.

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