A reason to be optimistic: The Indian packaging industry is set for high growth.

Friday 30 August 2013, Amsterdam

The Indian packaging industry is set for high growth between 2012 and 2017, with the number of packs expected to increase at a CAGR of 8.85%, one of the highest growth rates in the world. However, the complex consumer profiles, extreme diversity in needs, varying income patterns and changing purchase habits of consumers makes Indian packaging sector one of the most complex markets to decode, according to leading consumer specialist this latest report ‘Latest Trends and Key Issues in the Indian Retail Packaging Market - The outlook for primary packaging containers, closures and outers to 2017’.

The Indian economy is going through major transformation

The Indian economy is going through a major transformation as disposable income increases across all consumer segments. Globalization, liberalization and privatization of the economy are highlighting prominent consumer groups such as the newly affluent middle class, the large population of children, working women and younger consumers keen to experiment, which all have specific requirements

Additionally, the growth of organized retail and the entrance of foreign retailers will significantly affect consumer preferences.

The major market drivers are price, aspiration, convenience and quality. This generalized picture however, belies a far more complex underlying market structure, and the order of drivers varies for each consumer group. Changes in household size for example are triggering an increase in demand for family packs that are particular to India. The rising aspirations of middle-class consumers is boosting new categories and the demand for luxury goods; at the same time, inherently price sensitive consumers also look for value-for-money propositions. Shopping behavior is evolving too, as consumers are driven by a desire for greater convenience and are turning to shopping in malls and Private Labels when purchasing goods.

Consumer Drives

India has a young and vigorous economy, in sharp contrast to the aging, unstable and recession-prone economies of Europe and North America. India‘s expanding middle class and youthful population, the increasing number of women in the workforce, expanding household disposable income, the growth of organized retail chains and a globalized outlook, are combining to drive exponential growth of consumer spending in the country. India is already the fourth-most valuable retail market in the world, and is quickly closing the gap with third-placed Japan. Canadean estimates that the Indian retail market will be worth over US$979.0billion by 2017, improving from US$565.0 billion in 2012.

According to the Ministry of Commerce, the Indian packaging industry is currently the sixth-largest in the world and has the potential to develop into the fourth-largest over the next three to five years. In order to achieve this goal, the industry will need to carefully profile the billion plus Indian consumers in order to formulate appropriate strategies for meeting their packaging needs.

Urbanization and demographic changes to drive new packaging formats

India is still principally a rural country; however, the urban-rural distinction is gradually fading. The 2011 Census recorded an increase in the level of urbanization from 27.8% of the population in 2001, to 31.2% in 2011. According to the United Nations, the Indian urban population will account for 35.0% of the country‘s population by 2020, rising to approximately 40% by 2030.

The growing trend in urbanization, supported by the growth in the Indian economy and an increase in per capita income, is generating a strong consumer class with higher discretionary spending power. Canadean‘s 2012 consumer survey found that 14.5% of consumer products by value, totaling over INR8509 million, were consumed because Indians sought products that met needs they saw as being caused by their living environments; by their urban or rural lifestyles. The most important factors for urbanized consumers are the aspiration for a better lifestyle, increased brand consciousness, value plus requirements and innovation. The driving factors of both urban and rural areas are aspiration, quality and price; differing only in their order.

The report is a result of an extensive research covering latest trends and key issues in the Indian Retail Packaging Market.

It offers:

•A comprehensive analysis of the emerging trends and opportunities in India’s packaging market.
•An overview of key manufacturing and innovation trends in India’s packaging industry. .
•Analysis of the findings survey of key Retail packaging industry experts, carried out in 2013, providing a forecast as to where the industry is heading.
•An overview of the competitive landscape of Indian packaging sector with an analysis of the key market leaders including a snap shot of major deals.


This will facilitate:

•Clear identification of promising areas for future growth, both in terms of innovative products and lucrative geographies.
•Proper understanding of shifting market dynamics to ensure maximum sales.
•An insight into the complex picture of consumption’s variation between product categories.
•Explicit understanding of the relationship between key drivers of consumer demand in the retail packaging market.