Introduction:

Paper & Packaging Industry in India is a rapidly growing industry with enormous potential and future growth opportunities. The Indian packaging industry has grown quickly in recent years, becoming one of the country’s fastest-growing industries. The reason for this surge is that it provides attractive Growth and Investment Opportunities in a diverse variety of products and services at competitive pricing both domestically and internationally. In addition, multiple government programmes have raised demand for the various products and services produced by this industry, resulting in greater job possibilities.

Visit this Page for More Information: Start a Business in Packaging Industry

Investing in Paper and Packaging Industry in India:

Because India’s population is at an all-time high, investing in paper packaging is a lucrative enterprise. Indians’ increased per capita income and purchasing power have created opportunities for businesses willing to take advantage of these trends. Having said that, packaging will continue to play a vital role in almost every product. Packaging is critical in ensuring items reach their consumers securely, whether they are FMCG or pharmaceutical.

It’s no wonder, then, that investments in companies that specialise in packaging solutions have steadily increased over the last few years. While many investors are coming to well-known companies like Mondi, Reliance Industries Limited (RIL), and Tetra Pak International SA, there have also been a number of partnerships done with start-ups in specialised niches of the Paper & Packaging Industry in India.

Read Similar Articles: Packaging and Printing Industry

Mayur Uniquoters Private Limited, for example, a corrugated box manufacturer, recently received $10 million from SIDBI Venture Capital Ltd. and Edelweiss Financial Services Ltd. That said, new entrants aren’t the only ones benefiting from rising investor interest; incumbent players like Amcor Ltd. are witnessing greater M&A activity. Amcor has already made four purchases this year alone! All of this demonstrates how appealing investing in the Paper & Packaging Industry in India may be right now.

Packaging is one of India’s fastest-growing industries, growing at a rate of 25% per year.

• Laminates and flexible packaging, particularly PET and woven sacks, are the fastest expanding packaging segments.
• India’s paper and paperboard market is expected to increase at a rate of 6-7 percent each year. India consumes 15 kg of paper each person.
• In packaging materials sub-segments such as Biaxially-oriented Polyethylene Terephthalate (BOPET) and Flexible Intermediate Bulk Container (FIBC) film, India is the export market leader.
• The India Packaging Market was valued at $50.5 billion in 2019 and is predicted to reach $204.81 billion by 2025, with a CAGR of 26.7 percent between 2020 and 2025.
• The United States (50 percent of all exports), the United Kingdom, and all Western European countries are major export markets for Indian PE bags.
• Under the automatic route, 100 percent FDI is allowed in India’s paper and packaging businesses.

For further details, please refer FDI Policy

How the Packaging Industry Fits Into the Indian Economy:

In today’s globalised world, the Paper & Packaging Industry is vital. The industry of paper, printing, and packaging (PPP) accounts for 4% of GDP. In other words, PPP products bring in more than $80 billion to India’s GDP each year. This money supports thousands of jobs and raises the living standards of millions more. It’s no surprise that investors want to know how to get started investing in PPP stocks and which industries are the most rewarding.

Market Size: India is one of Asia’s largest marketplaces for paper and packaging materials. Over the next decade, this big market is predicted to develop at a rate of 7-8 percent per year, resulting in increased demand for paper and packaging materials.

Business Opportunities: As India gets more industrialised, specialised packaging materials such as plastic bags, bottles, and boxes will become more in demand. The government has also established objectives for waste reduction and recycling. As a result, businesses who produce environmentally friendly packaging materials will have plenty of room to expand as new requirements take effect.

Government Support: Low taxes, subsidies, grants, loans, and other incentives are used by the Indian government to encourage economic growth. Many of these programmes are tailored to small businesses because they can help them compete on price with larger firms while still delivering high-quality goods and services.

If you want to start a business in PPP Industry, it is important to understand how they fit into India’s overall economic picture.

Read our Books Here: Packaging Industry, Beverage Can, Bottles, Blister Packs, Carton, Bags, Plastic Bottles, Skin Pack, Tin Can, Boxes, Shrink Wrap, Barrel, Crate, Aseptic, Container, Active, Flexible, Rigid Plastic, Metal, Flexible, Glass, Paper Board, Food, Beverages

Industry Scenario

Packaging is one of India’s fastest growing industries, growing at a rate of 25% per year. The growth in demand for plastic packaging has been fueled by favourable demographics, growing disposable income levels, rising consumer awareness, and the desire for processed foods.

Important Paper and Packaging Facts in India:

• This industry’s polymer consumption is higher than the global average, indicating that plastic packaging is becoming more prevalent in the country.
• India has become a net exporter of packaging materials, accounting for about 2% of global packaging exports.
• Non-wood sectors of the industry contribute 70% of paper and board.
• Andhra Pradesh, Karnataka, Maharashtra, and Gujarat are the paper’s focus states.

India’s current per capita polymer consumption is at 9.7 kg, compared to the global average of 28 kg, Singapore’s 43 kg, China’s 45 kg, Thailand’s 50 kg, Japan’s 56 kg, Malaysia’s 58 kg, and Taiwan’s 67 kg. This indicates that our country has a lot of untapped potential. The number of mergers and acquisitions in the sector is increasing, indicating institutional investors’ interest.

Download PDF: Paper and Packaging Industry in India: Growth and Investment Opportunities

Factors Driving Growth of Packaging Sector in India:

During the forecast period, Paper & Packaging Industry in India is predicted to grow at a CAGR of around 26.7 percent (2022-2027). The rising population, rising income levels, changing lifestyles, increased media penetration through the internet and television, and a growing economy are all driving up packaging demand. Furthermore, it is one of the fastest-growing industries in the country. The pharmaceutical and food and beverage industries are driving the market’s rapid expansion.

Huge investments in the food processing, personal care, and pharmaceutical industries are allowing the packaging market to expand. The emergence of India’s middle class, the quick expansion of organised retail, the expansion of exports, and India’s burgeoning e-commerce sector are all helping to fuel growth. The Indian Institute of Packaging (IIP) estimates that packaging consumption in India has increased by 200 percent in the last decade, from 4.3 kilogramme per person per annum (pppa) to 8.6 kg pppa.

Related Feasibility Study Reports: Packaging Industry, Beverage Can, Bottles, Blister Packs, Carton, Bags, Plastic Bottles, Skin Pack, Tin Can, Boxes, Shrink Wrap, Barrel, Crate, Aseptic, Container, Active, Flexible, Rigid Plastic, Metal, Flexible, Glass, Paper Board, Food, Beverage

Growth Drivers of Paper and Packaging Industry in India:

Drivers of Demand

In a decade, the worldwide pharmaceutical packaging market is expected to double to $149 billion, with India generating a significant amount of plastic pharmaceutical packaging. The Indian online retail packaging market is predicted to develop threefold, with flexible packaging, bubble wraps, and corrugated boxes being in high demand. Demand for packaging items will rise as demand for FMCG segments such as packaged food and beverages, personal care products, and so on grows.

Drivers of Supply

Reduced package materials to save money on shipping – slimmer, stronger designs, lighter, simpler materials Smart packaging — faster print times linked with real-time marketing and offers; increased use of RFID technology for electronic tagging and stock tracking as RFID tags become more affordable. Biodegradable packaging, such as starch-based polymers and increased cardboard use. Ultra-high temperature (UHT) films are used in aseptic packaging to extend the shelf life of juice and other beverage bottles and tetra packages.

INDUSTRY TRENDS

Pharmaceutical Packaging Market: In a decade, the pharmaceutical packaging market is expected to quadruple to $149 billion.

Retail Packaging Market: The retail packaging market is expected to grow from INR 1.7 billion in 2019 to INR 4.79 billion in 2020. (2025).

Food and Beverage Packaging Market: The food and beverage packaging market is expected to grow from INR 29.95 tn in 2019 to INR 59.35 tn in 2025. (2025).

Personal Care Packaging Market: Growing from INR 0.74 billion in 2016 to INR 1.34 billion in 2017. (2025).

Some Useful Links:

Government Ministry/ Department

• Department for Promotion of Industry and Internal Trade
• India Institute of Packaging
• Ministry of Commerce

Industry Scenario

• India Paper Manufacturer Association (IPMA)
• Packaging Industry Association of India (PIAI)
• Indian Flexible Packaging & Folding Carton Manufacturers Association (IFCA)
• All India Plastic Manufacturers Association (AIPMA)
• Start a Business in Asia
• Start a Business in Potential Countries for Doing Business
• Best Industry for Doing Business
• Business Ideas with Low, Medium & High Investment
• Looking for Most Demandable Business Ideas for Startups
• Startup Consulting Services
• Start a Business in Africa
• Start a Business in India
• Start a Business in Middle East
• Related Videos
• Related Books
• Related Projects
• Related Market Research Reports