Reasons for Increasing Demand of Packaging Company in India

packaging company in India

Packaging company has become a necessity for any product being marketed today as visually graphic and colourful packaging attracts consumers to buy the product whether it is online or offline. Packaging is one of the high-growth industries in India expected to register a CAGR of approximately 26.7% during the period (2021-2026). India has also become a preferred hub for the packaging industry.

India’s packaging industry is set to rise to USD 204.81 billion by 2025. The growth in the packaging industry is driven by key factors such as rising population, increase in income levels, and changing lifestyles. Increasing demand for packaged products in rural India is also a contributing factor to the growth of this industry. The growth in the packaging industry in India is mainly driven by the food and pharmaceutical packaging sectors. Organised retailing is also one of the reasons for the growth in the packaging industry.

Export of products to the international market requires packaging that meets international standards and plays a major role in the increasing demand for packaging in India. The need for adopting better packaging methods, materials, and machinery by packaging company in India to ensure quality has become very important.

An abundance of raw materials for processing and packaging products has made India a market for growth and earning potential in the packaging industry. The ever-expanding e-commerce industry has also created a demand for quality packaging of products as they need to be delivered undamaged to the consumer.

The packaging industry can be broadly classified into two sections:

  • Rigid packaging
  •  Flexible packaging

Rigid Packaging

Rigid packagings are unbending in design meant to hold their shape under a variety of conditions. They normally consist of cans, plastic boxes, glass containers, and cardboard that cannot be easily re-shaped or changed. They are heavier, offer better protection but are more expensive when compared to flexible packaging.

E-commerce has also boosted the demand for rigid packaging accounting for 80 percent of the Indian packaging market. As per the Confederation of Indian Industry (CII), by 2025, India is expected to become the fifth-largest consumer market in the world. The demand for personal care products as a result of changing lifestyles, urbanisation, and increased personal health awareness has boosted the growth of the rigid packaging market. The pharmaceutical industry is also a contributing factor to increased demand for rigid packaging.

Flexible Packaging

Flexible Packaging can be defined as a type of packaging that can be readily shaped and changed and uses less material and combines the best qualities of plastic, films, foil, and paper. It not only minimises the waste but due to the lightweight nature of flexible packaged items; they can be easily transported from one place to another without any hassle. Flexible packaging is reusable, resalable, and sustainable for a more extended time which saves money.

The usage of flexible packaging in India is driven by ready-to-eat products. These products need packaging that provides great quality of packaging material while maintaining the hygiene and quality of food. Flexible packaging is also applicable to products like garments that do not require rigid boxes for protection.

With consumers in India preferring to shop for products whether it is for necessities or high-end items through e-retail and e-commerce, there would be an increased demand for a packaging company in India to provide high quality, safe and hygienic packaging. E-commerce and e-retail have also put great demand for transit packaging and omni-channel packaging, leading to more packaging needs.

Manufacturing sectors like pharmaceuticals or FMCG sectors such as packaged food and beverages, functional food, and hygienic products have seen considerable growth, raising the demand for packaging in India. While challenges for the packaging industry such as technology, regulations, volatile economic condition, increasing implementation of flexible packaging materials, fluctuating raw material prices, and stringent government regulations in different countries regarding usage of plastic packaging and its disposal might act as restraining factors for market growth, they are not unconquerable.

With the Indian government encouraging through subsidies and financial assistance, the packaging industry in India will have considerable growth opportunities. With the use of newer technologies, digital printers, and other packaging platforms packaging company in India can bring out the best packaging solutions.

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