"INDIAN PACKAGING INDUSTRY : GROWTH POTENTIAL
India has the second largest GDP among emerging economies based on purchasing power parity (PPP). The country is the 4th largest economy in terms of purchasing power parity (PPP). The packaging industry in India is one of the fastest growing industries which has its influence on all industries, directly or indirectly.
The Indian packaging industry is growing continuously. The total worth is about USD 24.6 billion. The average annual growth rate is about 13 - 15%. However, there is great growth potential since India’s per capita consumption of packaging is only 4.3 kgs whereas neighbouring Asian countries like China and Taiwan show about 6 kgs and 19 kgs, respectively. This clearly indicates that there are many more commodities which need to be marketed in packaged condition and thus, a great business opportunity stands for the Indian packaging industry.
Moreover, the Indian retail market is the 5th largest retail destination, globally and has been ranked the second most attractive emerging market for investment. The market is currently valued at USD 350 million and is expected to rise to USD 1.3 trillion by 2015.
The key trends for rapid growth of the Indian packaging industry are as follows:
- India’s retail growth and increased consumption of consumer products is driving the demand for packaging in the country.
- India is the sixth largest packaging market in the world, with sales of USD 24.6 billion in 2011.
- The packaging industry is expected to grow at a CAGR of 12.3% during the forecast period, to become the fourth largest global market, with sales of USD 43.7 billion in 2016.
- The Indian food processing market is one of the largest in the world in terms of production, consumption and growth prospects.
- India’s per capita annual packaging expenditure was USD 20 in 2011, which is significantly lower than the top 20 market average of USD 347.6. The low per capita expenditure offers a huge business opportunity for packaging companies.