Market Trends of India Plastic Industry
Packaging Segment Holds the Highest Share in the Market
Packaging accounts for the largest proportion of the plastics market in India. The packaging segment in India is thriving in second-tier cities because of the need for plastic packaging for the launch of new products. Both domestic and foreign companies are adopting strategies like joint ventures and partnerships with a positive effect on the growth of the market. The growth of the packaging industry is mainly due to the low cost and flexibility of resins with a low carbon footprint. Last year, India’s plastic packaging production volume reached 4.16 mt in volume, up from 4 mt of the previous year, registering a 3.97 % Y-O-Y growth by volume. The Indian plastic packaging segment is growing at a rapid pace due to the increasing consumption of packaged goods, increasing disposable income, and e-commerce growth. Moreover, several key players are offering a wide variety of plastic packaging options. Technological developments are also taking place in the industry, resulting in the development of new and innovative packaging solutions.
Growth in the Export of Plastic with a Positive Impact on Market Growth
According to the latest plastic export data, exports of plastic material amounted to USD 13.4 billion last year, a year-on-year (YoY) increase of 33.3% from the previous year. The most extensively exported type last year was plastic raw materials, accounting for more than 30% of the absolute exports. It recorded a YoY increase of 26.5%. During May last year, India's exports of plastic and linoleum were valued at USD 1,072 million. In the same period, the volume of exports of medical plastics and plastic films and sheets increased significantly, as did those of pipes and fittings. The volume of exports of FRP and composite materials, packaging goods, and miscellaneous products also increased significantly. The total volume of exports for April and May last year increased by 2.5% YoY to USD 2,174 million, bringing the total value of plastics exports to USD 6.375 billion. In the last year, the volume of plastics exports of plastic raw materials, medical items, and pipes and fittings grew by 32.4%, 24.7%, and 17.8%, respectively.
