India Flexible Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

India Flexible Packaging Market Analysis

The India Flexible Packaging Market size is estimated at USD 18.31 billion in 2024, and is expected to reach USD 31.51 billion by 2029, growing at a CAGR of 11.46% during the forecast period (2024-2029). In terms of market size, the market is expected to grow from 11.5 million tonnes in 2024 to 19.40 million tonnes by 2029, at a CAGR of 11.02% during the forecast period (2024-2029).

• The increasing demand for lightweight and convenient packaging solutions is a primary driver, as consumers seek products that are easy to handle and store. Rising consumer awareness of sustainability issues has also led to a preference for eco-friendly packaging options. Technological advancements in the packaging industry have significantly improved shelf life and product protection, making flexible packaging more attractive to manufacturers.
• Flexible packaging's adaptability to various shapes and sizes allows for versatile product presentations, while its cost-effectiveness appeals to businesses looking to optimize their packaging expenses. In addition, the ease of transport associated with flexible packaging contributes to its growing popularity in the Indian market. These factors collectively contribute to expanding the flexible packaging sector in India as industries increasingly adopt these solutions to meet consumer preferences and operational needs.
• Flexible plastic packaging dominates India's plastic packaging market, comprising 75% of total usage. The FMCG sector prefers this packaging type for its versatility and cost-effectiveness. Small-scale manufacturers, focusing on cost, produce diverse multi-layered packaging compositions. This results in a wide range of non-recyclable flexible packaging entering the market.
• Companies are increasing their production capabilities in India in response to the growing demand for pouches, bags, and films. This expansion reflects the market's positive trajectory and the industry's efforts to meet consumer needs. As the Indian market continues to show strong demand for these packaging products, manufacturers are strategically scaling up their operations to capitalize on this trend and maintain a competitive edge in the region.
• In April 2023, SIG, a packaging solutions provider, announced the opening of its second production plant in Palghar, India. This facility manufactures SIG's bag-in-box and spouted pouch packaging, previously marketed under the Scholle IPN and Bossar brands. Located 90km north of Mumbai and near SIG's first Palghar plant, the new facility houses production assets for manufacturing components and finished packaging. These include blown film extruders, injection molding cells, bag-in-box manufacturing machines, and a mold-making facility for packaging fitments and closures for both bag-in-box and spouted pouches.
• Flexible packaging was crucial in supporting India's e-commerce sector during the pandemic. In the post-pandemic period, the demand for flexible packaging has increased significantly, expanding business opportunities and driving growth in the printing and packaging industry. The e-commerce boom has influenced flexible packaging sectors, including food, pharmaceutical, cosmetics, etc.
• The continued expansion of e-commerce is expected to further boost the demand for flexible packaging in 2024 and beyond. According to the India Brand Equity Foundation (IBEF), an organization under the Ministry of Commerce, India's e-commerce sector is projected to reach USD 200 billion in revenue by 2026. This growth is primarily attributed to the country's increasing penetration of internet services and smartphones.
• Evolving regulations, spurred by growing environmental concerns, present a challenge to India's flexible plastic packaging market. Responding to public pressure over plastic waste, the government is implementing strict rules to reduce environmental impact and improve waste management. In 2022, India banned the production, import, storage, distribution, sale, and use of specific single-use plastic items. This action is significant in the country's efforts to combat plastic pollution. However, these regulations may restrict the use of flexible plastics nationwide.

India Flexible Packaging Market Trends

Pouches to Hold Significant Market Share

India Flexible Packaging Industry Segmentation

Flexible packaging refers to packaging that can easily change shape when filled or during use. It is typically made from plastic films, foils, papers, or combinations. This packaging format offers advantages like lightweight construction, customizable designs, and efficient storage and transportation. Flexible packaging is widely used for various products, including food, beverages, personal care items, and household goods. The versatility of flexible packaging allows it to adapt to different product sizes and shapes, making it suitable for a wide range of industries. Its ability to extend shelf life, reduce material waste, and lower transportation costs has increased popularity in the packaging industry.

The Indian flexible packaging market is segmented by material type (plastic [polyethylene (PE), bi-orientated polypropylene (BOPP), cast polypropylene (CPP), polyvinyl Chloride (PVC), ethylene vinyl alcohol (EVOH) and other plastics [BoPET, polyamide, bioplastics, etc.], paper, and aluminum foil), product type (pouches, bags, films and wraps, and other product types [sachets, sleeves, blister packs, liners, laminates, etc]), end-user industries (food [dairy products, baked goods, frozen foods, fresh produce, snacks & RTE food Products and other food products {baby food, pet food, etc.}], beverage[juices, energy drinks, milk, etc.], pharmaceutical & healthcare, personal care & cosmetics, household, tobacco, and other end-user industries [chemicals, agriculture, etc.]) and by region (east, west, north and south). The market sizes and forecasts are provided in terms of value (USD) and volume (units) for all the above segments.