India Rigid Plastic Packaging Market, By Region, Competition, Forecast and Opportunities, 2020-2030F

Report
85 Pages
August 2024
Region: India
TechSci Research
ID: 5550584

India Rigid Plastic Packaging Market was valued at USD 2.18 Billion in 2024 and is expected to reach USD 2.64 Billion by 2030 with a CAGR of 3.42% during the forecast period. Rigid plastic packaging provides robust and protective containers for a range of products. Unlike flexible plastic, which can be easily bent, or shaped, rigid plastic maintains its form and is valued for its strength, protective qualities, and versatility in molding into various shapes and sizes. The growth of the rigid plastic packaging market is driven by increasing demand across several sectors, including food and beverages, healthcare, personal care, and household goods. Key materials used include polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), and polyethylene terephthalate (PET), each chosen for their unique properties such as transparency, rigidity, and chemical resistance.

In India, the expanding economy and a rising middle class are significantly boosting the demand for packaged goods, thereby increasing the need for rigid plastic packaging. Factors contributing to market growth include a rising GDP, higher per capita income, growing e-commerce sales, and shifting consumer preferences. However, managing plastic waste and enhancing recycling efforts remain major challenges. India is addressing these issues through improved waste management practices and new recycling technologies, with increased pressure from regulators and environmental groups to reduce plastic waste and enhance recycling rates. Recent regulations, such as the Plastic Waste Management (Amendment) Rules, 2022, aim to curb plastic use and promote sustainable packaging solutions, making compliance crucial for manufacturers.

Ongoing investment in infrastructure and industrial development in India is expected to bolster the rigid plastic packaging market by enhancing production capabilities and distribution networks. Technological advancements in packaging, including better barrier properties, innovative design features, and smart packaging solutions, are poised to drive market growth and create new opportunities. While urban areas are leading in demand due to higher disposable incomes and evolving consumption patterns, the market is also expanding in rural areas.

The rigid plastic packaging market in India is set for continued growth, supported by economic development, urbanization, and changing consumer demands. Addressing environmental concerns and adapting to regulatory changes will be essential for sustaining this growth.

Key Market Drivers

Rising Disposable Incomes

As disposable incomes increase, consumers are likely to invest more in a range of packaged products, including food, beverages, personal care items, and household goods. This uptick in spending drives a higher demand for packaging solutions, especially rigid plastics, known for their durability and convenience. With rising incomes, spending on both traditional retail and e-commerce platforms also grows. Rigid plastic packaging plays a crucial role in safeguarding products during transit and ensuring they arrive in optimal condition, thus supporting growth across these retail channels. According to IBEF, India has approximately 936.16 million internet subscribers, including around 350 million active online users engaged in transactions.

The government revised the per capita disposable income forecast to USD 0.0026 Million for 2023-24, up from the previous estimate of USD 0.0025 Million, based on the corrected GDP data released in March 2024. This correction reflects changes in gross national disposable income, net national disposable income, and per capita disposable income at current prices for 2022-23 and 2023-24. The updated data shows an 8% increase in per capita disposable income for FY24 and a 13.3% rise in the previous year.

With higher disposable incomes, consumers are expected to spend more on convenience-oriented products such as ready-to-eat meals and snacks. Rigid plastic packaging is essential for providing the necessary protection and convenience for these products, further boosting demand. Additionally, a rise in disposable income often aligns with a greater emphasis on health and wellness, driving the demand for health-focused products with specialized packaging, such as nutritional supplements and organic foods, which frequently utilize rigid plastic packaging.

Thus, increasing disposable incomes enhance consumers' purchasing power and preferences for packaged goods, stimulate demand for higher-quality and premium products, and support the growth of various product categories, all contributing to the expansion of the rigid plastic packaging market in India.

Growing Urbanization and Population

As urban areas expand and populations grow, there is an increasing demand for packaged goods such as food, beverages, and household products. Rigid plastic packaging is extensively utilized to meet this demand due to its durability and convenience. In 2023, India surpassed China to become the world's most populous country. The World Bank reports that India is urbanizing rapidly, with projections indicating that by 2036, its towns and cities will be home to 600 million people, or 40% of the population, up from 31% in 2011. Urban areas are expected to contribute nearly 70% to GDP.

With a population of 1.2 billion and the world’s third-largest economy in purchasing power parity terms, India’s urbanization drives the development of extensive retail and distribution networks, including supermarkets, convenience stores, and online platforms. Rigid plastic packaging is essential for these retail formats, providing effective protection and presentation for a wide range of products.

The increase in population and urbanization leads to higher production and distribution of goods. Rigid plastic packaging ensures products are well-protected during transportation and storage, minimizing damage and spoilage, which is critical for maintaining product quality in a more complex supply chain. The pressures of catering to a large urban population often spur innovation in packaging solutions. Rigid plastics benefit from technological advancements, such as improved barrier properties, which support market growth and attract investment.

In densely populated urban areas, there is a heightened emphasis on health and safety. Rigid plastic packaging helps maintain product hygiene and extends shelf life, which is increasingly important in urban environments with high product turnover. Additionally, urbanization brings lifestyle changes, including a greater preference for ready-to-eat meals and premium products. Rigid plastic packaging meets these evolving consumer preferences by offering convenience, quality, and protection.

Key Market Challenges

Environmental Concerns

Rigid plastic packaging significantly contributes to the escalating issue of plastic waste. Improper disposal and inadequate recycling result in plastics accumulating in landfills and natural environments, leading to pollution and threatening wildlife and ecosystems. According to the Confederation of Indian Industry, nearly one-third of plastic packaging in India is used for rigid applications, such as bottles for personal and homecare products, drinking water, and carbonated soft drinks. In total, 56% of the plastic market in India is dedicated to packaging applications. While packaging is intended to protect products and reduce waste, a concerning 95% of plastic packaging material is lost to the economy after a short use cycle. Globally, one-third of plastic packaging remains uncollected, further exacerbating environmental pollution.

The Indian government and local authorities have introduced several regulations to address plastic waste. These include bans on specific plastic products, restrictions on single-use plastics, and recycling mandates. In 2022, the Government of India issued new Extended Producer Responsibility (EPR) Guidelines under the Plastic Waste Management Rules. These guidelines place a statutory obligation on manufacturers to collect, recycle, and reuse plastic packaging, and to incorporate recycled content into new packaging. The Guidelines aim to enhance packaging sustainability through ambitious targets and better packaging design. Adhering to these regulations often necessitates significant adjustments in packaging materials and processes, resulting in increased operational costs.

Despite efforts to improve recycling practices, India's recycling infrastructure remains underdeveloped. Inefficient collection, sorting, and recycling processes limit the effectiveness of recycling programs, contributing to environmental degradation. Additionally, the production and disposal of rigid plastic packaging have a considerable environmental impact, including high energy consumption and greenhouse gas emissions. Addressing these issues requires the adoption of more sustainable manufacturing practices and efforts to reduce the overall carbon footprint.

Volatility in Raw Material Prices

The cost of raw materials for rigid plastic packaging, such as petroleum-based polymers, can be highly unpredictable. Variations in crude oil prices and disruptions in the global supply chain can lead to volatile material costs, impacting overall production expenses. As raw material costs rise, manufacturers face pressure on their profit margins. Companies often find it difficult to absorb these increased costs or pass them onto customers without affecting demand, which can lead to financial strain and potential profitability issues.

Fluctuating material costs pose challenges for budgeting and financial planning, complicating forecasting and impacting strategic decision-making and long-term investments. Supply chain disruptions, such as delays in transportation or material shortages, can further exacerbate cost fluctuations, leading to higher expenses and potential production delays.

To address these challenges, companies must frequently adjust their pricing strategies, which can result in pricing instability and affect customer relationships and market perception. Investing in technology and innovation to enhance efficiency and reduce reliance on unstable raw materials is crucial. However, these investments require substantial capital and can strain financial resources. Additionally, adapting to new regulations and compliance requirements related to sustainability or recycling can add to the financial burden. Companies need to implement effective cost control, supply chain management, and resource optimization strategies to navigate these challenges successfully.

Key Market Trends

Rise of Innovative Packaging

Consumer awareness and demand for environmentally friendly products are on the rise. Shoppers are actively seeking packaging solutions that reduce environmental impact and promote sustainability. In response, companies are implementing sustainable practices and incorporating eco-friendly features into their packaging. Starting from 2023-24, all companies are mandated to collect and recycle 100% of their plastic packaging material, as outlined by new guidelines from the Union Environment Ministry aimed at regulating and reusing daily plastic waste. New regulations, such as the Extended Producer Responsibility (EPR) Guidelines, mandate that manufacturers oversee the entire lifecycle of their packaging, including collection, recycling, and responsible disposal of plastic waste. To support these efforts, there is a push to enhance recycling infrastructure and technology, making it easier to process and recover materials from rigid plastic packaging. Industry collaborations are also being formed to improve recycling practices and waste management systems.

In 2024, GEM Enviro Management Limited, a waste management firm, announced that it will recycle over 7,500 metric tons of plastic for Mamaearth, a brand of Honasa Consumer Limited. This initiative has helped Mamaearth achieve plastic neutrality, reflecting a strong commitment to environmental responsibility.

Advancements in materials science are fostering the development of eco-friendly alternatives, such as plant-based plastics and reduced plastic composites. For example, in April 2024, SABIC and Pashupati Group announced a partnership to convert plastic waste into pyrolysis oil, which will be used in the production of SABIC’s certified circular polymers.

In 2023, Polymateria, in partnership with Toppan Specialty Films (TSP), introduced packaging that fully biodegrades without leaving microplastics or toxins. This innovation represents the fastest biodegradation of biaxially oriented polypropylene used in food and cosmetic packaging, achieved through Polymateria’s advanced biotransformation technology.

Additionally, in 2023, sustainable packaging startup Fibmold secured $10 million in funding from Omnivore and Accel. Fibmold produces eco-friendly molded fiber packaging made from natural materials like bamboo, bagasse, husk, wheat straw, and wastepaper, offering an alternative to traditional rigid plastics.

There is a notable shift towards using recycled plastics in rigid packaging. Manufacturers are increasingly using post-consumer recycled materials to reduce reliance on virgin plastics and minimize environmental impact. The emphasis is on creating a circular economy where materials are reused and recycled, reducing waste and the need for new raw materials. For instance, Coca-Cola India launched Coca-Cola in rPET bottles in 250 ml and 750 ml sizes in 2023, produced by bottling partners Moon Beverages Ltd. and SLMG Beverages Ltd. The move towards sustainability and eco-friendly packaging in India's rigid plastic packaging market is driven by consumer preferences, regulatory requirements, and technological innovations. Companies are increasingly focused on reducing their environmental footprint and adopting practices that support a sustainable future.

Segmental Insights

Raw Material Insights

Based on Raw Material, the Polyethylene Terephthalate (PET) emerged as the dominating segment in the Indian market for Rigid Plastic Packaging in 2024. PET is widely utilized across various applications, such as beverage bottles, food containers, and household items, thanks to its adaptability for diverse packaging requirements. Its clarity and strength make it a favored option for consumer products, enhancing its market presence. As one of the most frequently recycled plastics, PET can be reprocessed into new products, supporting a circular economy and reducing environmental impact. Companies are increasingly investing in recycled PET (rPET) to achieve sustainability objectives, which further boosts PET’s market appeal. For instance, in June 2024, German recycling equipment and technology firms Coperion and Herbold Meckesheim are partnering with Indian preform and plastic packaging manufacturer Magpet Polymer Pvt. Ltd. to establish a PET bottle-to-bottle recycling facility. This new system will handle all processing stages, including extrusion with a ZSK twin-screw extruder, pelletizing, and solid-state polycondensation (SSP), with a throughput of 5,500 kilograms (12,125 pounds) per hour. The recycled PET produced will meet the standards of both the European Food Safety Administration (EFSA) and the U.S. Food and Drug Administration (FDA) for direct food contact and will also be approved by brand owners.

PET's exceptional durability and impact resistance ensure that products are safeguarded during handling and transportation. Its effective barrier properties against moisture and gases help maintain freshness and extend the shelf life of packaged goods. The cost-effectiveness of PET, due to its large-scale production capabilities, supports its widespread use and competitive pricing. The growing market for bottled beverages, especially carbonated drinks and water, drives considerable demand for PET packaging. Combining its aesthetic appeal with functional benefits, PET aligns well with consumer preferences for convenience and safety, making it the preferred choice for numerous packaging applications.

End User Insights

Based on End User, Food & Beverages emerged as the fastest growing segment in the Indian market for Rigid Plastic Packaging during the forecast period. The rising demand for convenient, ready-to-eat, and on-the-go food and beverage items is fueling the need for efficient packaging solutions. The growing variety of packaged products, including drinks, snacks, and processed foods, significantly drives this expansion. Increased emphasis on food safety and quality assurance further heightens the demand for high-quality, secure packaging that maintains product integrity. Additionally, the shift towards eco-friendly and sustainable packaging materials within the food and beverage industry supports this segment's growth.

In 2024, Zomato, India’s leading food ordering and delivery service, collaborated with Startup India to launch the ‘Plastic-Free Orders Packathon,’ aimed at fostering innovation in sustainable packaging solutions for food deliveries. Furthermore, frequent innovations and new product introductions in the food and beverage sector necessitate diverse and advanced packaging solutions. For example, in May 2024, researchers from Panjab University's Institute of Forensic Science, DAV College, and NIT Srinagar received an Indian patent for their biodegradable food packaging film designed to replace conventional plastic-based films. Investments in cutting-edge packaging technologies and infrastructure are also driving growth in this sector.

Regional Insights

Based on Region, West India emerged as the dominant region in the Indian market for Rigid Plastic Packaging in 2024. West India is a key industrial hub, encompassing sectors such as food and beverage, pharmaceuticals, personal care, and automotive. This diverse industrial activity drives a strong demand for rigid plastic packaging. The region benefits from advanced port infrastructure, including Jawaharlal Nehru Port and Kandla Port, which streamline the import and export of packaging materials and products.

Maharashtra and Gujarat have experienced substantial industrial growth. Gujarat’s efforts to foster industrial development, through initiatives like Special Economic Zones (SEZs) and industrial parks, have attracted many packaging companies. For instance, in 2023, SIG, a leading Swiss packaging solutions provider, announced an investment of USD 65.56 million to establish its first aseptic carton plant in Ahmedabad, Gujarat. Aseptic cartons, which combine layers of paperboard, plastic, and aluminum, are used for packaging liquid foods and beverages.

The region has also drawn significant foreign direct investment (FDI) across various sectors, including packaging, which supports the expansion and advancement of the rigid plastic packaging market. The favorable business environment in West India, marked by supportive government policies and robust infrastructure investments, encourages growth and innovation in the packaging industry. Additionally, Mumbai-based Creative Propack, a part of Creative Group, showcased its 100% recycled HDPE, PP, and PET bottles at the 8th Injection, Blow, Roto Moulding & PET International Summit 2023 in Mumbai. West India’s large and varied consumer base further drives demand for packaged goods, with strong consumer spending on products like food, beverages, and personal care items. The growth of e-commerce in cities such as Mumbai and Pune also fuel the need for durable and innovative packaging solutions.

Key Market Players

Time Technoplast Ltd.
Manjushree Technopack Limited
Mold-Tek Packaging Limited
Hitech Corporation Limited
Amcor Rigid Plastics India Private Limited
Pearl Polymers Limited
Parekhplast India Limited
EPL Limited
Chemco Group
Regent Plast Private Limited.

Report Scope:

In this report, the India Rigid Plastic Packaging Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

India Rigid Plastic Packaging Market, By Raw Material:

Polyethylene (PE)
Polyethylene Terephthalate (PET)
Polypropylene (PP)
Polystyrene (PS)
Expanded Polystyrene (EPS)
Others

India Rigid Plastic Packaging Market, By Production Method:

Blow Molding
Injection Molding
Rotomolding
Others

India Rigid Plastic Packaging Market, By End User:

Food & Beverages
Industrial
Healthcare
Cosmetics & Toiletries
Others