An insight into Indian Packaging Industry

Indian packaging industry accounts for 4% of the global packaging industry, making it the sixth largest
in the world. The increasing demand for packaged food products, coupled with the convenience
offered by plastic packaging material have helped in the growth of plastic packaging as well as flexible
packaging solutions.
According to Packaging Industry Association of India (PIAI), the flexible packaging industry in India is
growing by a CAGR of nearly 25%, Food & beverage industry is the largest consumer of flexible
packaging products, accounting for nearly 70% of the total consumption.
The demand from pharmaceutical industry for flexible packaging products has been growing by a
strong rate and is expected to continue in the coming years.
Bottle grade PET chips are used in manufacturing PET bottle, which finds application in food &
beverage industry for packaging purposes. The demand for pet bottles has experienced remarkable
growth as their consumption and application have dramatically gone up in various consumer goods
segment for food and non-food application.

Competitive Scenario in Indian flexible packaging industry is fragmented with large number of small and medium sized players and few large players. These large players are characterized by conversion capacities above 5000 tons
per annum, equipped with modern facilities, as well as offer printing solutions to films ranging from
co-extruded to sophisticated multi-layer laminates. India PET chip manufacturing industry comprise of few large players like Reliance Industries, Filatex India Limited, JBF Industries, and Dhunseri Petroleum. These large players account for a significant majority of the total production in India, with Reliance Industries being the clear leader. The
dominance of Reliance Industries could be attributed to the ease of availability of raw materials (which
is produced internally, as Reliance Industries has strong backward integration capabilities).

Rapid growth in demand for packaged food products coupled with increasing shift to flexible packaging from other traditional packaging have helped in increasing the demand for flexible packaging products.Considering the growth potential inherent in Indian packaged food industry, the future demand for flexible packaging products from food & beverage sector looks strong.The demand from pharmaceutical industry for flexible packaging products has been growing by a strong rate and is expected to continue in the coming years.The demand for pet bottles has experienced remarkable growth as their consumption and application have dramatically gone up in various consumer goods segment for food and non-food application. This growth in PET bottle usage has directly resulted in higher demand for bottle grade PET chips manufactured in the country.

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