Packaging has become an inevitable part of our lives with its application in a wide range of industries including food and drink, healthcare, cosmetics and other consumer goods. India’s plastics packaging industry is expected to reach $73 billion by 2020 according to a joint report prepared by the Federation of Indian Chambers of Commerce & Industry and Tata Strategic Management Group.
The report mentions that at present, the size of the plastics packaging industry in India is around $32 billion, which makes up only 4% of the global packaging industry. The per capita packaging consumption is also quite low at 4.3 kg, compared to countries such as Germany and Taiwan, where it is 42 kg and 19 kg, respectively. However, in the coming years, it is expected to grow at 18 per cent per annum.
The plastic packaging industry in India has a high growth potential. The progression of this industry is influenced by a wide range of factors, the growing demand from the rural sector, rising income levels, and changing lifestyles. “Organised retail and boom in e-commerce will also fuel the growth of plastic packaging, and per capita consumption will be doubled in five years,” the report observes.
The plastics and polymer consumption is growing at an average rate of 10 percent. About 30,000 processing units with 1,13,000 processing machines have created manufacturing capacity of 30 million tons per annum in India.