Market Trends of India Rigid Plastic Packaging Industry
Polyethylene terephthalate (PET) is Expected to Record Robust Growth
- In the past few years, there has been huge demand for PET across the country. PET’s popularity can be attributed to its advantages, such as providing reusable packaging for mineral water and other beverages, which facilitates a more cost-effective transportation process. PET, known for its clarity and natural CO2 barrier properties, boasts a versatility that allows it to be effortlessly molded into bottles or any desired shape. Manufacturers can enhance PET's properties by incorporating colorants, UV blockers, oxygen barriers/scavengers, and other additives, tailoring bottles to meet specific brand requirements.
- Recycling PET not only saves costs but also offers significant environmental advantages. Producing bottles from recycled PET (rPET) preforms consumes less energy than virgin PET, leading to cost savings and a reduced carbon footprint. This circular economy approach diminishes dependence on raw materials and reduces waste, resonating with the sustainability goals of numerous regional businesses and governments.
- Several big and small players across the country are launching initiatives to bolster the demand for PET. For instance, in January 2024, Coca-Cola India, in collaboration with Reliance Retail, the retail division of the Indian conglomerate Reliance Industries Limited (RIL), unveiled a fresh initiative focused on the collection and recycling of PET materials.
- PET bottles dominate the water packaging market, outpacing both glass and traditional plastic bottles, owing to their durability and recyclability. The trend underscores the growing preference for lightweight, durable, and cost-effective PET in water packaging. A report from the International Bottled Water Association highlighted that approximately 97% of bottled water containers are plastic, with nearly 80% being PET.
- India, boasting the highest population in the region and a rapidly developing outlook, witnessed a significant surge in bottled water consumption. The Indian Railway Catering and Tourism Corporation Limited (IRCTC) introduced its bottled water brand, "Rail Neer," primarily sold on trains and at railway stations. With the rising demand for bottled water and the expanding railway sector, IRCTC ramped up production, increasing from 75.30 million bottles in 2021 to 357.70 million bottles in 2023. This trend of increase in consumption is expected to continue during the forecast period, consequently bolstering the demand for PET bottles.
Understand The Key Trends Shaping This Market
Download PDF
The Food Segment is Expected to Hold a Significant Market Share
- The food packaging industry in India is among the major ones. It is expanding due to the country's response to changing lifestyles and demographics, the accessibility of a cheap labor force, the unrestricted availability of raw materials, the expansion of export opportunities, and government initiatives to promote the growth of the food packaging industry. The pandemic, the increase in disposable income, the increased need for discretionary purchases of branded goods, mainly processed food products, a revitalized retail sector, and state sponsorship contributed to the expansion of the food packaging industry in the country.
- Packaged foods are becoming increasingly popular in India with the increased number of working women and a shift toward on-the-go consumption due to hectic schedules. As a result, the use of creative and environmentally friendly packaging in the food industry is predicted to rise, which may fuel the demand for rigid plastic food containers over the coming years.
- According to Bikaji and Retailers Association of India, the market value of packaged food in India is expected to increase to approximately INR 5,798 billion (USD 69.05 billion) by 2026. With the increasing consumption of packaged food in the country, the utilization of plastic for packaging has surged. This growth is driven by factors such as urbanization, changing consumer lifestyles, and the expansion of the retail sector.
- Retail sales, particularly in supermarkets and convenience stores, also led to a surge in demand for processed food in plastic containers. The visibility and accessibility of these products in plastic packaging contribute to increased consumer convenience and impulse purchases, driving further growth in the rigid plastic packaging market across the region.
- Zomato and Swiggy are among the prominent online food delivery apps with significant shares in the Indian online food delivery market. With rising acceptance and innovation of packaging, companies like Zomato, Swiggy, and Dunzo are exploring the online food delivery business. Indian food delivery firms lose money on most orders due to high delivery costs and discounts. Hence, packaging material is one of the critical aspects considered economically for the purpose of packaging hot food.
