Market Trends of India Flexible Packaging Industry
Pouches to Hold Significant Market Share
- Pouches have become a versatile and environmentally friendly packaging option, meeting consumer and manufacturer needs. In recent years, significant improvements in pouch technology have been driven by increased focus on sustainability, technological advancements, and design flexibility.
- Pouches are widely used in various segments of the food and beverage industry, such as pet food, baby food, and liquid packaging (including tea, coffee, and juices). Their popularity stems from features like easy opening (through tear notches and laser perforations), user-friendliness (with zippers and customizable shapes), and reseal ability. Furthermore, their chemical inertness has extended their use beyond food into the pharmaceuticals, pet care, and cosmetics industries.
- The increasing demand for small packs has driven growth in the flexible pouch segment, aligning with the trend toward smaller-quantity packaging. India's transition from food scarcity to abundance presents significant opportunities for expanding its food processing capabilities. The country's food processing sector has experienced substantial growth, increasing its annual contributions to the global food trade. Urban areas are witnessing a notable increase in the consumption of processed foods, particularly ready-to-eat items and snacks. According to the India Brand Equity Foundation, annual household consumption of processed foods in India is expected to triple by 2030, reinforcing the country's position as a highly attractive market.
- The rising demand for convenient, portable, and single-serve food and beverage items aligns with modern, fast-paced lifestyles. Pouches, being lightweight and resealable, effectively meet this demand. Their versatility and ease of use make them increasingly popular among consumers seeking on-the-go options. In 2023, the retail sales value of chocolate pouches and bags in India exceeded USD 250 million, reflecting the growing preference for this packaging format.
- This figure is projected to reach approximately USD 458 million by 2028, with a compound annual growth rate of 12.3%. The substantial growth forecast underscores the continued expansion of the pouch market in India, driven by changing consumer preferences and pouches' adaptability to various product categories.
- Furthermore, stand-up pouches are evolving significantly, driven by sustainability imperatives, innovative packaging advancements, and printing innovations. Brands choosing biodegradable and compostable materials demonstrate their environmental commitment and appeal to the growing eco-conscious consumer base. Several factors contribute to this growth. For instance, in August 2023, Ferrero Rocher Moments revamped its packaging in India with pouches made in factory-packed hangsells and shelf-ready dispensers for modern and traditional trade and e-commerce platforms. The new packs maintain the premium essence and design codes of the original Ferrero Rocher through gold-colored packaging and contemporary design patterns.
Understand The Key Trends Shaping This Market
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Food Segment Expected to Hold Significant Share in the Market
- The online grocery market in India was valued at over USD 4.79 billion in 2022. It is projected to reach USD 14.1 billion by 2024. This growth is driven by the expanding e-commerce sector in India and increasing demand for online grocery products. Key categories contributing to this growth include dairy products, baked goods, frozen foods, fresh produce, snacks, ready-to-eat, baby food, and pet food products. The rise in these product categories subsequently creates demand for innovative, flexible packaging solutions in India.
- Confectionery manufacturers seek lightweight, protective, visually appealing packaging with high barrier properties. This trend is expected to drive sales in the confectionery packaging market. The multi-sensory aspect of confectionery packaging attracts purchases and significantly influences the market’s growth. Packaging is crucial in product differentiation and brand recognition, especially in the competitive confectionery sector. Manufacturers invest in innovative packaging solutions that preserve products and enhance shelf appeal and consumer engagement.
- Flexible packaging, preferred by consumers and producers of baked goods and snacks, offers superior convenience. Consumers particularly appreciate its reseal ability and ease of use, especially for products like cookies and bread that are often consumed over multiple occasions. This type of packaging addresses the need for freshness preservation and portion control, aligning with modern lifestyle demands. In addition, flexible packaging often requires less material, potentially reducing environmental impact and transportation costs, which are increasingly important factors for consumers and manufacturers in the food industry.
- Flexible packaging for frozen foods must ensure high product safety from production to consumption. These materials are designed to withstand extreme cold, maintaining packaging integrity. The increasing consumption of frozen fish, chicken, and other meats drives demand for packaging materials. Flexible packaging is preferred for its ability to protect against contaminants, preserve freshness, and provide convenient storage, making it particularly suitable for meat products.
- According to Ministry of Commerce & Industry data in June 2023, Frozen Fish became a leading export, generating INR 5,503.18 crore (USD 687.05 million). This year saw a significant increase in Frozen Fish exports: quantities rose by 62.65%, while Rupee and USD values increased by 58.51% and 45.73%, respectively. This growth in frozen fish exports is expected to drive demand for various flexible packaging formats across the country in the coming years.
