India Molded Pulp Packaging Market Growth & Trends

The India molded pulp packaging market size is expected to reach USD 600.7 million by 2028, according to a new report by Grand View Research, Inc., expanding at a CAGR of 12.1% over the forecast period. Growing demand for eco-friendly, biodegradable packaging solutions to replace its plastic counterparts is expected to drive market growth. The market is highly unorganized with several small- and medium-scale companies manufacturing egg trays and fruit trays using recycled pulp.

However, the foodservice disposable industry, which demands virgin pulp for manufacturing packaging products, such as clamshells, trays, cups, etc. that come in close contact with food items, is witnessing significant growth over the past few years. In India, the majority of the virgin pulp used in the foodservice industry is derived from non-wood sources, such as bagasse and rice straw. The stable cost structure of these raw materials compared to hardwood and softwood pulp is likely to be a key factor driving its demand.

Furthermore, increasing regulations on deforestation are likely to propel the demand for non-wood raw materials, such as Agri-waste, over the projected period. The growth of the online food-tech industry in India, increasing demand for eco-friendly packaging, and the upcoming positive government outlook, which demands sustainable packaging solutions to replace single-use plastic products, are expected to open several growth opportunities.

The manufactures from the industrial segment are reluctant to replace plastic packaging with molded pulp packaging owing to its higher cost, low impact resistance compared to EPS, and high weight restraining the industry growth. However, changing government regulations supporting sustainable activities is expected to boost industry growth over the projected period.

India Molded Pulp Packaging Market Report Highlights

  • The recycled wood pulp segment dominated the market in 2020 on account of high product adoption in applications, such as egg & fruit packaging solutions
  • The application of virgin wood pulp is primarily driven by the foodservice and electronics industries
  • Bagasse is the most widely used raw material in the non-wood pulp segment, wherein sometimes it can be mixed with virgin wood pulp to improve the rigidity of the final product
  • Egg packaging solutions, such as cartons and trays, emerged as the largest application for molded pulp in 2020 on account of their recyclable & biodegradable nature and low cost compared to their plastic counterparts
  • The foodservice segment has emerged as one of the most significant application segments. Increasing demand for online food delivery services in the country is likely to support the segment growth over the projected period