Worth over US $39 billion and projected to reach US$65.4 billion by 2020, the Indian food packaging industry is the fifth-largest sector in the rapidly developing Indian economy.
Growth drivers for the Indian market include
- A young population
- Ongoing urbanization
- Growing number of supermarkets
- Growing middle class
With a sales volume of 30 million tonnes in 2013, opportunity for flexible packaging is huge. The demand for packaged food in India is estimated to rise by to 37 million tonnes by 2017. To meet the burgeoning demand, manufacturers are expanding their production and investing in processing and packaging technology. In particular, export-oriented manufacturers are looking for the most state-of-the-art technology to remain competitive in the international market.
Whether for the production of confectionery or cookies, sandwiches, bread and other baked products, meat and meat products, beverages, dairy products, or other convenience products, the processing stages in the production and filling of food and drinks are diverse and distinct worldwide.
Currently, rigid packaging owns the majority of the market, however, notably, there is a shift in demand and flexible packaging is encroaching on that market share. Manufacturers, all fighting to stay competitive, are choosing flexible packaging for its advantages over rigid, including lightweight, small pack size, and ease of storage and transportation.
With an estimated value of US$900 million and growing, the flexible packaging industry’s biggest consumers are food (representing 38% of the market) and fast moving consumer goods industries, growing at about 20 per cent annually.
*Source: Interview with Rajesh Nath, managing director, VDMA India Services Pvt. Ltd with Anurag More of FnBnews.com