 "India's food packaging industry crosses $50 million mark: Study")
Clocking a compounded annual growth rate (CAGR) of around 16%, the packaged food market in India is expected to have crossed the $51.5 million mark in 2015, said a joint study undertaken by the Associated Chambers of Commerce of India (Assocham).
"In wake of increasing disposable incomes and a growing number of nuclear families, the share of packaged food in the processed food market is expected to increase marginally to around 29% in 2016 from around 28% in 2015," according to the study that was conducted by Assocham and a market research company, TechSci Research.
The value of food and beverage packaging market in India is estimated to have risen to around $16 billion in 2015 from $12 billion in 2010, besides registering a CAGR of over 6%.
The study, titled Dynamics involved in multi-layered food packaging, also found that food packaging, with a size of over $4 billion had the biggest share in the the plastic packaging market, where it accounted for around 63% of the total share.
Market for multilayer plastic food packaging is currently estimated at about $1 billion, which is about 22% of India's total plastic food packaging industry. However, in the food and beverages packaging market, multilayer plastic food packaging accounts for over 6% share in value terms.
"Growing usage of packaging material in various food service outlets together with increasing demand for packaged beverage and expanding working class population has given impetus to food packaging industry in India," said Mr D.S. Rawat, secretary general of Assocham while releasing the findings of the study.
In terms of share, metallic and other packaging material accounts for about half of India's overall food and beverages packaging market, followed by printed cartons and rigid packaging (24%), and flexible packaging material (24%) that includes like food packaging laminates and packaging foils.